The applicant appealed a decision by Tarion Warranty Corporation denying her warranty claim for a defective HVAC system in her new home.
The system failed to adequately heat the lower floors and cool the upper floors, and the air handler frequently locked out.
Tarion argued the equipment was excluded from warranty because it was leased from a third party.
The Licence Appeal Tribunal held that leased equipment supplied by the vendor is not excluded under section 13(2)(a) of the Ontario New Home Warranties Plan Act, as it was not supplied by the owner.
The Tribunal preferred the evidence of the applicant's expert regarding the extent of the defects and the necessary remediation.
The Tribunal allowed the appeal and ordered Tarion to pay the applicant $40,000 in compensation to repair the HVAC system and building envelope to comply with the Ontario Building Code.
