1. Introduction

Welcome Home Construction (“the Builder”) is proud to stand behind the quality of its work. This Limited Warranty (“this Warranty”) sets out the coverage the Builder provides to the original owner (“the Homeowner”) for the project identified on the cover page. Its coverage structure follows the familiar 1‑year, 2‑year and 7‑year tier model used in Ontario’s new home warranty program, adapted here as the Builder’s own contractual warranty.

This Warranty is intended to give the Homeowner clear, dependable protection against defects in workmanship and materials, and against major structural defects, on the terms set out below.

Applicability & Your Legal Rights

This Warranty applies to projects that are not covered by Ontario’s statutory new home warranty program — for example, renovations and additions, and other builds that fall outside that program. For these projects, this Warranty is the Builder’s contractual warranty and, together with the parties’ construction or purchase agreement, sets out the coverage that applies.

This Warranty is in addition to, and does not limit, any right or remedy that applicable law does not permit to be waived or excluded. Where the Homeowner is an individual acquiring the work for personal, family or household purposes, this includes rights under Ontario’s consumer-protection legislation, which continue to apply regardless of any term of this Warranty. Where a term of this Warranty conflicts with such a non-excludable right, that right prevails and the rest of this Warranty continues to apply.

Definitions

“The home” or “the project” means the work covered by this Warranty as identified on the cover page, whether that is a newly constructed home, a custom build, or a renovation or addition to an existing home. Where a term of this Warranty refers to “the home,” it applies to the covered work regardless of project type.

“Date of Possession” means the date on which the Homeowner is entitled to take possession of the home as recorded in the signed possession, closing or occupancy document between the Builder and the Homeowner. For a renovation or addition, the Date of Possession is the date of substantial completion of the covered work as recorded by the parties. This date is the single reference point from which every coverage period in this Warranty is calculated.

“Major Structural Defect” (MSD) means a defect in a load-bearing portion of the home that materially and adversely affects its load-bearing function, or a defect that materially and adversely affects the use of the home for its intended purpose.

“Construction Performance Standards” means the tolerance and performance standards set out in Schedule A to this Warranty, which are used to determine whether a condition is a warrantable defect or falls within acceptable tolerance. Any condition not addressed in Schedule A is assessed against good residential construction practice and the applicable Building Code.

2. Coverage Summary

The Builder warrants the home against the defects described below for the periods indicated. All coverage periods begin on the Date of Possession, being the date the Homeowner takes possession of the home.

Whether a condition is a warrantable defect or falls within acceptable tolerance is determined by reference to the Construction Performance Standards in Schedule A. “Major Structural Defect” is defined in Section 1 (Definitions).

3. What Is Covered

3.1 One-Year Coverage

For one (1) year from the Date of Possession, the Builder warrants that the home is:

• Constructed in a workmanlike manner and free from defects in work and materials, assessed against the Construction Performance Standards in Schedule A;
• Fit for habitation, meaning suitable for use as a residence in accordance with the applicable Building Code and free of conditions that render the home unsafe or unfit to live in;
• Constructed in accordance with the applicable Building Code;
• Free of unauthorized substitutions in materials from those specified in the purchase agreement or selections.

3.2 Two-Year Coverage

For two (2) years from the Date of Possession, the Builder warrants the home against:

• Defects in materials or work that result in water penetration through the building envelope (basement or foundation walls, and other parts of the envelope);
• Defects in materials or work in the electrical, plumbing and heating delivery and distribution systems;
• Defects in materials or work that result in the detachment, displacement or deterioration of exterior cladding;
• Violations of the Building Code that affect health and safety.

3.3 Seven-Year Coverage (Major Structural Defects)

For seven (7) years from the Date of Possession, the Builder warrants the home against Major Structural Defects, as defined in Section 1 above.

3.4 Mechanical Systems — Installation vs. Equipment

The Builder warrants the installation of the home’s HVAC, plumbing and electrical systems for the applicable periods above. Individual items of equipment — including furnaces, heat pumps, air conditioners, water heaters, HRVs and ERVs, appliances, water softeners, sump pumps, and similar equipment — carry their own manufacturer’s warranty and remain subject to that warranty rather than this one. The Builder will, on request, provide the Homeowner with available manufacturer warranty documentation and will not stand in the place of a manufacturer for a defect in the equipment itself.

4. What Is Not Covered

This Warranty does not cover the conditions listed below. Many of these are normal characteristics of a new home or of natural materials, or are the Homeowner’s maintenance responsibility. Where a condition is covered only during the first year, it becomes homeowner maintenance after that.

4.1 General Exclusions

• Normal wear and tear, and normal shrinkage of materials that dries, cures or settles within the tolerances in Schedule A;
• Defects in materials, design or work supplied or installed by the Homeowner or a person contracted directly by the Homeowner;
• Damage resulting from improper maintenance, misuse, neglect or failure by the Homeowner to follow reasonable maintenance and operating instructions;
• Damage caused by alterations, additions or renovations made after the Date of Possession;
• Indirect, incidental or consequential losses (such as loss of use, income, or the cost of alternative accommodation) beyond the cost of repairing the covered defect and any resulting damage that applicable law requires the Builder to remedy;
• Damage caused by acts of nature, flood, fire, or other events beyond the Builder’s reasonable control;
• Appliances, equipment and products carrying their own manufacturer’s warranty (see Section 3.4);
• Contaminated soil, and municipal or utility services not supplied by the Builder.

4.2 Cosmetic Conditions

The following cosmetic conditions are warrantable, if at all, only during the first year and only where they exceed the tolerances in Schedule A; after the first year they are homeowner maintenance:

• Paint touch-ups; drywall nail pops and hairline shrinkage cracks; trim and moulding separation; minor grout cracking; minor caulking shrinkage; flooring expansion gaps; cabinet and door adjustment; and seasonal wood movement.

4.3 Wood, Flooring and Natural Materials

Wood and other natural materials expand, contract, warp, cup, twist and shrink with seasonal changes in humidity. Minor movement of this kind — in cabinetry, stairs, trim, hardwood, and doors — is normal and is not a defect. In addition, the following flooring conditions are excluded:

• Scratches, dents, and damage from furniture, rolling chairs, high heels, or pets; moisture damage; damage from improper cleaning; and seasonal gapping within tolerance.

Exact colour, grain, texture, dye lot or finish matching cannot be guaranteed where a repair involves natural materials or products that have been discontinued.

4.4 Exterior Concrete

The following are normal characteristics of exterior concrete (driveways, walkways, porches, garage floors) and are not warrantable unless they exceed the tolerances in Schedule A or result from defective workmanship: colour variation, minor shrinkage and control-joint cracking, minor surface crazing, and scaling or spalling caused by de-icing salts.

4.5 Moisture, Humidity and Ventilation

The Builder is not responsible for damage — including mould or mildew — caused by the Homeowner’s operation of the home rather than a construction defect, including damage arising from excessive indoor humidity, inadequate ventilation, blocked or disabled HRVs/ERVs, closed vents, improper use of exhaust fans, or humidifier settings. Dampness or condensation resulting from the Homeowner’s failure to maintain adequate ventilation is excluded.

4.6 Landscaping and Site

Unless specifically included in a written contract with the Builder, landscaping and related site items are excluded, including sod, trees, shrubs, mulch and topsoil; irrigation systems; settlement or die-off due to drought or watering; and damage from lawn equipment, salt, or fertilizer.

4.7 Occupancy and Third-Party Damage

Damage occurring after the Date of Possession that is caused by moving and deliveries, movers, trades or contractors hired by the Homeowner, tenants, guests, or pets is excluded.

4.8 Environmental and External Conditions

Unless directly caused by the Builder’s work, the Builder is not responsible for radon; municipal water quality or pressure; utility, internet, cable or cellular outages or service; or vibration or disturbance from neighbouring construction.

5. Homeowner Responsibilities & Maintenance

Proper maintenance is a condition of this Warranty. Where a lack of reasonable maintenance causes or contributes to damage, coverage for that damage may be reduced or unavailable to the extent the lack of maintenance contributed to it. This does not limit any right the Homeowner has under applicable law that cannot be excluded.

5.1 Ongoing Maintenance

The Homeowner is responsible for reasonable routine and seasonal maintenance, including of: furnace and HRV/ERV filters; water softeners and humidifiers; sump pumps and backwater valves; smoke and carbon-monoxide detectors; exterior caulking; grading, downspouts, splash pads and eavestroughs; plumbing fixtures; irrigation; roof and gutter debris removal; attic ventilation; decks; expansion joints; driveway sealing; and garage doors.

5.2 Seasonal Inspections

The Homeowner should inspect the home seasonally and address issues promptly: in spring, grading, drainage, the sump pump and exterior caulking; in fall, gutters, roof, hose bibs, irrigation and the attic; and in winter, indoor humidity, condensation and ice damming.

5.3 General Obligations

• Report warranted defects promptly and in writing within the applicable coverage period;
• Maintain adequate humidity, ventilation and drainage;
• Provide the Builder reasonable access to the home, and remove furniture, stored items, personal belongings and pets from affected work areas so repairs can proceed;
• Take reasonable steps to prevent further damage once a defect is discovered.

6. How to Make a Warranty Claim

If the Homeowner discovers a defect that may be covered by this Warranty, the following steps apply:

• Submit a written claim to the Builder before the end of the applicable coverage period. To allow the Builder to investigate efficiently, the claim should include a description of the issue, its location in the home, the date first observed, photographs or video where practical, the steps taken to prevent further damage, and confirmation that the condition has not been altered.
• The Builder will acknowledge the claim in writing within ten (10) business days of receipt and, for a non-emergency claim, arrange an inspection within thirty (30) days of acknowledgement.
• Where the defect is covered, the Builder will repair or, at its option, replace the defective item, or pay the reasonable cost of doing so, within the timeframes set out in Section 7.

Warranty claims should be submitted to:

Welcome Home Construction — Warranty Department

Address: ________________________________________________

Email: __________________________ Phone: ________________

6.1 Builder’s Right to Repair

The Builder must be given the first opportunity to inspect and repair any condition believed to be covered by this Warranty. Before authorizing repairs by another contractor for such a condition, the Homeowner must give the Builder reasonable written notice and a reasonable opportunity to inspect and correct it. Except in a genuine emergency (see Section 6.2), repairs performed by third parties without the Builder’s prior written authorization are not covered by this Warranty, and the Builder is not responsible for their cost. Where emergency work is required, the Homeowner should take only those steps reasonably necessary to prevent further damage or injury and notify the Builder as soon as reasonably possible.

6.2 Emergencies

An “emergency” means a covered defect that, if not addressed without delay, poses an imminent risk of significant damage to the home or of injury to its occupants — for example, a total loss of heat in freezing conditions, a major water leak, a total loss of electrical supply, or a sewage backup. To report an emergency, the Homeowner should telephone the Builder’s warranty line below during the stated hours and, outside those hours, use the after-hours contact provided. The Builder will respond to a reported emergency within twenty-four (24) hours. Emergency response is limited to making the situation safe and preventing further damage; permanent repair of the underlying defect is then handled as a standard claim. This clause does not make the Builder responsible for conditions outside its coverage or caused by the Homeowner.

Warranty line: ____________________ Hours: ____________________

After-hours emergency contact: ____________________________

7. Repair Standards, Method & Timing

The Builder will carry out warranty repairs in a workmanlike manner. The Builder may repair warranty items using materials, finishes or products that are identical, comparable, or current manufacturer-approved equivalents where the original products have been discontinued or are unavailable. Exact colour, grain, texture, dye lot or finish matching cannot be guaranteed, particularly for natural or discontinued materials.

The Builder reserves the right to determine the appropriate method of repair, replacement or correction. The Builder’s obligation is to restore the affected component to substantially the same performance and appearance, not to replace unaffected adjacent materials. For example, where a single element can be properly repaired, the Builder is not required to replace an entire surface or run of material.

Subject to weather, availability of materials, and the Homeowner providing reasonable access, the Builder will complete non-emergency covered repairs within ninety (90) days of confirming coverage, or, where seasonal conditions prevent proper completion (for example, exterior or grading work that cannot be done in winter), by the end of the next practical work season. Where a repair cannot be completed within these timeframes, the Builder will notify the Homeowner in writing of the reason and the expected completion date.

Repair timeframes are automatically extended by delays beyond the Builder’s reasonable control, including strikes and labour disruptions, pandemics and public-health measures, material or supply shortages, manufacturer delays, severe weather, utility interruptions, and transportation disruptions.

A repair carried out under this Warranty does not extend the original coverage period. The specific repaired work is warranted against defects in that repair for the remainder of the applicable coverage period or ninety (90) days from completion of the repair, whichever is longer. This limited re-warranty applies only to the work performed in the repair and does not restart or extend coverage for the home or for any other component.

8. Dispute Resolution

If the Homeowner and the Builder disagree about whether a defect is covered or how it should be resolved, the parties will first attempt to resolve the matter through good-faith discussion. If the matter is not resolved within thirty (30) days, either party may refer it to mediation with a mutually agreed mediator. If mediation does not resolve the matter within a further thirty (30) days, the dispute will be submitted to binding arbitration before a single arbitrator under the arbitration legislation of Ontario, and the arbitrator’s decision will be final.

Nothing in this Section limits any right the Homeowner has under applicable law that cannot be excluded, including, for a Homeowner who is an individual acquiring the work for personal, family or household purposes, any right under Ontario’s consumer-protection legislation to bring a claim in court or before a tribunal. Any mandatory dispute process required by such legislation applies despite this Section.

9. Transfer of Warranty

This Warranty runs with the home for the balance of the applicable coverage periods and benefits a subsequent owner during those periods, with all coverage periods calculated from the original Date of Possession. No coverage period is extended, renewed or restarted by a transfer of ownership.

To keep coverage in effect following a sale, the transferring owner or the new owner should, within thirty (30) days of the transfer, give the Builder written notice that includes the new owner’s name and contact details, proof of ownership, and the closing date. The transferring owner should also disclose any prior or outstanding warranty claims to the new owner. Failure to provide notice does not by itself cancel coverage for the balance of the periods, but the Builder is not responsible for any delay, missed communication, or inability to access the home that results from not having current owner and contact information.

10. Reduction or Voiding of Coverage

Coverage for affected items may be reduced or unavailable, to the extent the following caused or contributed to the damage, where the damage results from: unauthorized renovations or structural modifications; removal of load-bearing walls or overloading of floors or other structural elements; improper grading, or removal of downspouts or splash pads; flooding caused by the Homeowner; freezing due to lack of heat; leaving the property vacant without proper winterization; or failure to maintain adequate indoor humidity and ventilation. This Section governs coverage under this Warranty and does not limit any right the Homeowner has under applicable law that cannot be excluded.

11. Pre-Delivery Inspection

Where the project involves handover of a completed home or unit, the Homeowner and the Builder complete a Pre-Delivery or completion inspection before the Date of Possession, and items identified during that inspection are documented separately on the inspection form. Non-structural or cosmetic conditions that were visible during the inspection but not recorded are treated as accepted, except where they are hidden defects or where applicable law provides otherwise. The inspection record helps distinguish construction deficiencies from cosmetic conditions accepted at completion. For renovation or addition projects, a completion walkthrough serves the same purpose.

12. Limitations & General Terms

• This Warranty sets out the Builder’s express warranty for the project. To the extent permitted by law, it replaces other express builder warranties on the same subject matter. It does not limit, and is in addition to, any implied warranty or other right that applicable law does not permit to be excluded, and it does not affect the Homeowner’s remedies for misrepresentation.
• Except for any liability that applicable law does not permit the Builder to limit, the Builder’s liability under this Warranty is the repair or replacement of the covered defect and of damage to the home resulting directly from that defect; it does not extend to indirect, incidental or consequential losses such as loss of use, income, or the cost of alternative accommodation.
• If any provision of this Warranty is found unenforceable, the remaining provisions continue in full force.
• Where the Homeowner is not a consumer — that is, where the Homeowner is a corporation, partnership, or an individual acquiring the work for business or investment purposes rather than for personal, family or household purposes — the additional terms in Schedule C (Commercial Rider) apply and, in the event of a conflict, prevail over the corresponding terms of this Warranty. Schedule C does not apply to a consumer Homeowner.
• This Warranty is governed by the laws of the Province of Ontario.

Acknowledgement

The Homeowner acknowledges receipt of this Limited Warranty and understands its terms.

_______________________________ _______________________________

Homeowner Signature / Date Builder Representative / Date