Friday, August 6, 2010

Protect the Finish Warranty on your Common Elements

Each individual who purchases a house or condo in Ontario completes a PDI under their Tarion warranty.  This allows them to claim damage caused by the builder during construction.  But what about the common elements of a Condominium?  By the time a year has passed and the Performance Audit is issued, no one can prove who caused the damage to the finishes in the common elements.

While some builders are cooperative a repair the damage noted in the first year, regardless of the source, most will argue that the damage was caused by residents, and refuse to repair.

To maximize the likelihood that the builder will pay for repairs, the Property Manager can complete a PDI-type review of the common elements as soon as they arrive in the building (documenting the chips, dents, scratches and similar that are clearly from construction) and then to remain aware of the work being done by the builder during the first year so that new damage caused by their activities is clearly documented and related to those activities.  Without this sort of rigorous documentation, there is no way to prove who caused the damage.

Of course, the better solution in my mind is the win-win solution where the two parties agree that the damage was likely caused by BOTH residents and construction, and agree to split the cost to repair.  Neither feels taken advantage of, and both end the day feeling that the situation is fair.

No comments:

Post a Comment

Feedback is always welcome