Condo common-elements warranty — condo corporation files claims; performance audit in year 1 by board-retained engineer can itself be the warranty form

Claim: Common-element defects are claimed by the condominium corporation — not individual unit owners. Coverage starts on the date the corporation is registered (or the amendment date for phased projects). The condo board appoints a designate and submits warranty forms following its performance audit — a structural and systems audit conducted in the first year by an engineer retained by the board. The performance audit can itself be submitted as a warranty form.

Source: Tarion Registrar Bulletin 02 (Common Elements).

Confidence: Verified.

Not covered as common elements: Vacant land condos and common-element condos do not have common-elements warranty coverage.

Coverage cap: For APS on/after Feb 1, 2021, common-element coverage is $100,000 × units to a $3.5M maximum, project cap $50M — see Tarion coverage caps: APS on/after July 1, 2023 — $400K freehold / $300K condo unit / $100K × units common elements to $3.5M cap; $50M project cap.

Conciliation for common elements: Chargeable common-elements conciliations carry a $3,000+HST builder charge (vs $1,000+HST for individual units) — see Tarion conciliation process — 120-day builder repair, $250 homeowner deposit, $1,000/$3,000 chargeable to builder if any item warranted, 10-year OBD record.

For Candid client work: Most builder clients won't need atomic detail here, but a condo developer's sales site should mention common-elements warranty coverage as part of the trust-signal package. Buyers of pre-construction condos often don't know the corporation (not them) is the claimant.