Strata Tip of the Week - How Proactive Stratas Make the Most of their New Home Warranties

If you’ve read our previous blog titled New Home Warranties in Strata Corporations, you’ll know that in British Columbia, newly built homes (including strata-titled properties) or significantly reconstructed buildings must be covered by third-party new home warranty insurance.

While hearing that a strata corporation is addressing warranty deficiencies might initially raise concerns, this is often a positive sign. Buildings are rarely constructed without any deficiencies, and addressing them during the warranty period shows the strata is using its warranty coverage effectively to protect owners from costly repairs.

But what exactly does a proactive strata corporation need to do to maximize these warranties?

1. Review Warranty Terms and Track Expiry Dates

Proactive stratas carefully review their warranties to:

• Understand maintenance requirements: Regular upkeep is often required to keep warranties valid.

• Avoid voiding warranties: For example, applying certain window films may void window warranty coverage.

• Track key deadlines: The 2-5-10 warranty provides phased coverage with different expiry dates for labor, materials, building systems, and structural components.

By planning ahead, stratas can identify issues and ensure claims are made before warranties expire.

2. Create Clear Systems for Reporting Issues

Residents are the eye and ears on the ground, and often spot deficiencies first. Proactive stratas:

• Establish systems for residents to report issues

• Keep organized records of all reported deficiencies.

This ensures that potential problems are flagged early and prioritized for evaluation.

3. Engage Professionals to Evaluate Deficiencies

Warranty-related issues often require technical expertise to assess. Proactive stratas hire qualified professionals, such as engineers or building specialists, to:

• Inspect the building.

• Provide detailed reports about deficiencies.

These reports are essential for documenting warranty-related problems and supporting any claims that the strata may need to pursue.

4. Work with Legal Experts to Submit Claims

While the strata is responsible for initiating the process of identifying and addressing deficiencies, the actual submission of warranty claims is often best handled by a lawyer. Warranty claims can involve complex and technical requirements, and having legal expertise ensures:

• Claims are submitted correctly and within deadlines.

• The strata is well-prepared in case disputes arise with warranty providers.

In some cases, disagreements over warranty coverage may lead to mediation or arbitration, where strong evidence and proper documentation can make a significant difference.

5. Oversee Repairs to Ensure Proper Completion

Once a claim is approved, the strata should oversee the repair process by:

• Ensuring the repairs are done by qualified contractors.

• Engaging independent professionals to verify the quality of work.

This step ensures deficiencies are addressed properly and that repairs meet the standards outlined in the warranty.

6. Remind Owners About In-Suite Warranty Responsibilities

While the strata is responsible for managing warranties of common property components, individual owners are responsible for addressing deficiencies within their own strata lots.

In-suite warranties typically cover defects in materials and labour for 12 months. This includes items such as plumbing fixtures, cabinets, flooring, etc., but it’s up to owners to act quickly and take advantage of this coverage.

Proactive stratas often go the extra mile by:

• Informing owners about their in-suite warranty coverage.

• Sharing deadlines and resources to help owners navigate the in-suite warranty claims process effectively.

By ensuring owners are well-informed, proactive stratas help minimize the risk of missed opportunities to address in-suite deficiencies.

What Buyers and Realtors Should Look For

When evaluating strata-titled properties, pay close attention to how the strata manages its warranties. A proactive strata will:

• Track maintenance requirements and warranty deadlines.

• Keep detailed records of reported deficiencies.

• Engage qualified professionals and legal experts to evaluate and submit warranty claims.

A well-managed strata makes the most of its warranty coverage, ensuring owners aren’t left with unexpected repair costs. Sharing this knowledge with clients empowers them to make informed decisions and maximize the value of their property.

That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca.