14 (1) Subject to the regulations, a person who has entered into a contract to purchase a home from a vendor is entitled to receive payment out of the guarantee fund for the amount that the person paid to the vendor as a deposit or other payment to be credited to the purchase price under the contract on closing if, (a) the person has exercised a statutory right to rescind the contract before closing; or (b) the person has a cause of action against the vendor resulting from the fact that title to the home has not been transferred to the person because, (i) the vendor has gone into bankruptcy, or (ii) the vendor has fundamentally breached the contract.  1998, c. 19, s. 185 (1); 2000, c. 26, Sched. B, s. 15 (2); 2017, c. 33, Sched. 4, s. 6 (1). Same, construction contract (2) Subject to the regulations, an owner of land who has entered into a contract with a builder for the construction of a home on the land and who has a cause of action against the builder for damages resulting from the builder’s failure to substantially perform the contract, is entitled to receive payment out of the guarantee fund of the amount by which the amount paid by the owner to the builder under the contract exceeds the value of the work and materials supplied to the owner under the contract.  1998, c. 19, s. 185 (1). Same, breach of warranty (3) Subject to the regulations, an owner of a home is entitled to receive payment out of the guarantee fund for damages resulting from a breach of warranty if, (a) the person became the owner of the home through receiving a transfer of title to it or through the substantial performance by a builder of a contract to construct the home on land owned by the person; and (b) the person has a cause of action against the vendor or the builder, as the case may be, for damages resulting from the breach of warranty.  1998, c. 19, s. 185 (1); 2000, c. 26, Sched. B, s. 15 (3, 4). Same, major structural defect (4) Subject to the regulations, an owner who suffers damage because of a major structural defect mentioned in clause 13 (1) (b) is entitled to receive payment out of the guarantee fund for the cost of the remedial work required to correct the major structural defect if the owner makes a claim within four years after the warranty expires or such longer time under such conditions as are prescribed.  1998, c. 19, s. 185 (1). Interpretation, substantial performance (5) For the purposes of this section, a contract is substantially performed if it is substantially performed within the meaning given by subsection 2 (1) of the Construction Act.  1998, c. 19, s. 185 (1); 2017, c. 24, s. 79. Timelines and procedures for claims (5.0.1) The timelines and procedures associated with claims for compensation from the guarantee fund may be prescribed by regulation made by the Lieutenant Governor in Council. 2020, c. 14, Sched. 5, s. 20 (1). Conflict (5.0.2) In the event of a conflict, a regulation made by the Lieutenant Governor in Council for the purposes of subsection (5.0.1) prevails over a by-law of the Corporation passed under section 23. 2020, c. 14, Sched. 5, s. 20 (1). Delayed occupancy or closing (5.0.3) Subject to the regulations, a person who has entered into an agreement to purchase a home from a vendor is entitled to receive payment out of the guarantee fund for a delay in, (a) occupancy of the new home, as determined by the regulations; or (b) closing the agreement of purchase and sale, as determined by the regulations. 2020, c. 14, Sched. 5, s. 20 (2). Evidence required of claimant (5.1) Subject to subsection (5.2), a claimant under a claim, (a) shall explain, in accordance with the regulations, the reasons for the concern giving rise to the claim; (b) if the claim does not relate to an entitlement to receive compensation out of the guarantee fund under subsection (1) or (2) or is not a prescribed claim, shall include, in the reasons for the concern giving rise to the claim, a description of the symptoms of the concern that have been observed or experienced, unless the regulations provide otherwise; and (c) is not required to prove the cause of the concern giving rise to the claim if the claimant has complied with clauses (a) and (b), unless the regulations provide otherwise. 2017, c. 33, Sched. 4, s. 6 (2). Exception (5.2) Subsection (5.1) does not apply to, (a) a claim after the Corporation makes a decision mentioned in subsection (1) in respect of the claim; or (b) a claim in respect of common elements or prescribed property of a condominium corporation. 2017, c. 33, Sched. 4, s. 6 (2). Response of Corporation (6) The Corporation shall investigate the concern giving rise to a claim to verify that it relates to an entitlement to receive compensation out of the guarantee fund under subsection (1), (2), (3) or (4) and, if it does, shall determine whether the claimant is entitled to receive such compensation and how it will deal with the claim. 2020, c. 14, Sched. 5, s. 20 (3). Inquiries, etc. (7) In investigating a concern under subsection (6), the Corporation may make any inquiries, conduct any inspections or apply any technical and other expertise that it considers appropriate. 2020, c. 14, Sched. 5, s. 20 (3). Expert help (8) An individual making an inquiry or conducting an inspection under subsection (7) on behalf of the Corporation may be accompanied by one or more persons with special expert or professional knowledge, and other persons as necessary, as the individual considers advisable. 2020, c. 14, Sched. 5, s. 20 (3). Conduct of inquiries, etc. (9) The Corporation shall ensure that any actions it takes under subsection (7) are done in accordance with the regulations, if any. 2020, c. 14, Sched. 5, s. 20 (3). Process of dealing with claims (10) In dealing with a claim, the Corporation may use a range of processes for inquiring into the claim and for engaging with the claimant and other affected parties. 2020, c. 14, Sched. 5, s. 20 (3). Other recovery (11) In determining the amount for which a claimant is entitled to receive payment out of the guarantee fund, the Corporation shall, subject to the prescribed requirements or restrictions, if any, take into consideration any benefit, compensation or indemnity payable or the value of work and materials furnished to the claimant from any source. 2020, c. 14, Sched. 5, s. 20 (3). Performance (12) The Corporation may perform or arrange for the performance of any work in lieu of or in mitigation of damages that are claimed. 2020, c. 14, Sched. 5, s. 20 (3). Notice of decision (13) When the Corporation makes a decision in respect of a claim, it shall serve notice of the decision, together with reasons for the decision, on the claimant and the other persons, if any, that are prescribed. 2020, c. 14, Sched. 5, s. 20 (3). Appeal to tribunal (14) A notice under subsection (13) shall state that the claimant is entitled to appeal the decision to the tribunal by providing notice to the tribunal, to the Corporation and to the other persons, if any, that are prescribed, in the form and within the time that is prescribed. 2020, c. 14, Sched. 5, s. 20 (3). Copy of notice of appeal (15) The Corporation shall provide a copy of any notice of appeal it receives under subsection (14) to the relevant vendor or builder and to any other persons that may be prescribed. 2020, c. 14, Sched. 5, s. 20 (3). Dispute resolution (16) The right to a hearing before the tribunal does not preclude the Corporation from making available one or more voluntary dispute resolution processes for a claim. 2020, c. 14, Sched. 5, s. 20 (3). Tribunal hearing (17) If the tribunal receives a notice of appeal under subsection (14), it shall appoint a time for and hold a hearing. 2020, c. 14, Sched. 5, s. 20 (3). Parties (18) The Corporation and the claimant are the parties to the proceedings before the tribunal under this section, unless the regulations provide otherwise. 2020, c. 14, Sched. 5, s. 20 (3). Order (19) After holding a hearing, the tribunal may, (a) by order, direct the Corporation to take the action that the tribunal considers the Corporation ought to take in accordance with this Act and the regulations; and (b) for the purposes of the order, substitute its opinion for that of the Corporation. 2020, c. 14, Sched. 5, s. 20 (3). Other remedies unaffected (20) Unless the regulations specifically provide otherwise, nothing in this Act restricts the remedies otherwise available to an owner or any other prescribed person for the failure of another person to perform a duty imposed by this Act. 2020, c. 14, Sched. 5, s. 20 (3). Section Amendments with date in force (d/m/y) 1998, c. 19, s. 185 (1) - 05/05/2001 2000, c. 26, Sched. B, s. 15 (2-4) - 05/05/2001 2017, c. 24, s. 79
- 01/07/2018; 2017, c. 33, Sched. 4, s. 6 (1) - 14/12/2017; 2017, c. 33, Sched. 4, s. 6 (2) - 01/02/2021 2020, c. 14, Sched. 5, s. 20 (1-3) - 01/02/2021