“It was a new condo building.
A construction flaw was making it collapse under its own weight.
The city condemned it as unsafe. The residents had to move out.
The turned to the new home owners warranty to pay for the massive repairs.
But there was a loophole.”
This was the first paragraph on the front page of Montreal Gazette’s on Saturday. Anyone, buyer or not- will become extremely wary of buying new construction after reading the entire story.
The builders have not been held accountable for the damages, nor they have repaired (or offer to do so) the disaster of construction they created. The administrators of the New Home Guarantee Program refused to cover the repair costs to the building because the (five year) warranty had expired at the time all the faults were discovered.
The warranty program requires that when construction is completed, the contractor must inform the condo association that it has to hire an independent, professional building engineer to assure the work meets the building code and the specifications of the purchase agreements. The inspector’s report is then given to each condo owner. If more work is required, the owners can hold back their final payment until the faults are repaired. When the construction is deemed to be finished, all parties sign an end-of-construction document and ownership of the building is turned over to the condo association. That’s when the five-year guarantee begins.