What Should You Do If Problems Arise After Buying New Construction Condo?

You may not be able to move into a newly built condo without having issues at your fingertips. Sometimes the problems occur after move-in, such as plumbing issues, water leaks, heating and cooling problems, electrical issues, or unfinished workmanship, damaged finishes. There are some issues that will be apparent right away and others that will only become apparent after occupancy.

If a buyer buying new construction condo units and finds that there is a problem after they have taken ownership, they may have some important questions regarding who is responsible for it, what is covered by the warranty, and what they have to do. It is most practical to document the problem, inform the relevant person in writing, refer to the purchase and warranty documents and maintain records of any inspections or repair attempts. Requirements can differ between Canadian provinces, so buyers should also check the rules which apply to their property. 

What Should You Do When You Discover a Problem?

If a problem occurs after you move into a new condo, record it quickly and write it down to the builder, developer, property manager, or the warranty company. Maintain photos, videos, inspection records, correspondence and repair records; have a history of what happened and when it was reported.

The first step in the process of purchasing new construction condo property is to accurately describe and articulate the problem. Do not use a general statement like, ‘there’s something wrong with the bathroom’, but instead offer specifics about what you saw, where, and when the issue first occurred.

If the issue needs further review, a clear record can make it easier for future communication and can be helpful if the issue requires more review. Purchasers should keep email correspondence, photos, videos, inspection records, invoices and builder/other party written responses. 

Some types of information that are useful to include: 

• Date of the discovery of the problem.
• The specific location of the problem.
• Photos of damage condition
• Videos on leaks, sounds, movement or if the problem occurs intermittently.
• Descriptions in written form of the events that happened.
• Emails and repair requests (copies)
• A report of inspection or assessment by a professional
• A schedule of when and what was attempted for repairs.A record of date and details of the repair attempts
• If the problem reappeared after the repair, records should be kept to indicate this. 

Do not make any changes or repairs to a large deficiency until it is documented unless there is an urgent need to prevent further damage or to address a safety issue. 

Which Problems Should Be Reported Immediately?

Some issues need to be addressed right away as the damage may escalate if left untreated. Examples include:

• Active water leaks
• Water penetration or substantial moisture
• Electrical problems
• Plumbing failures
• The failure of heating or cooling system(s)
• Exterior doors or windows not working properly
• Any major cracks or other structural issues
• Any deficiencies that could pose a safety risk 

The level of severity also should play a role in reporting timelines. A small cosmetic defect could follow a different process than a leak or electrical problem. It is important for buyers to not presume that all issues are reported the same way. 

How Can You Determine Whether the Problem Is Covered?

Determination of whether a new condo issue is covered will depend on the purchase agreement, applicable warranty, type of defect and provincial requirements. It is important for buyers to check their documents and any applicable warranty procedures before taking it upon themselves to assume this responsibility as it may not be the builder’s. Conditions of coverage and exclusion, reporting and deadlines may vary in different parts of Canada.

At the time of purchasing a new condo unit, buyers should carefully check the purchase agreement in conjunction with the warranty papers. These documents can help to explain what the obligations, reporting processes, coverage periods and limitations may be for certain deficiencies.

How the problem is formulated may also impact coverage. A cosmetic problem, a functional problem, a water problem and possibly a structural problem may be addressed differently within the framework of the warranty in question. 

Before submitting a claim or requesting a formal remedy, check:

• The original agreement of purchase and sale.
• Any amendments and additional agreements shall be of no effect.
• Warranty documentation
• The date when someone has control over the property.
• Applicable warranty periods
• Deficiency reporting procedures
• Claim submission requirements
• Exclusions and limitations
• Evidence requirements.
• If it’s a problem with the unit versus the common area 

Every defect is not automatically covered, as the buyer must first determine if it is covered. Warranty plans might not include normal wear, owner-caused damage, maintenance issues, or conditions that are not covered by the warranty. 

Why Do Provincial Rules Matter for Canadian Condo Buyers?

Warranties and consumer protection laws may vary from province to province in Canada. A process that works in one province shouldn’t be assumed to be a rule across the country.

The best way to write an article that touches on the whole of Canada is to include a brief description of the general process and link to the official authority that would be responsible to them in their province. It is a good idea for buyers to check the coverage, deadlines, exclusions and complaint procedures before assuming the information is accurate.

The organization that will perform a warranty claim or dispute may also depend on the property’s location. Moreover, issues that impact a specific condo unit could be a totally different procedure from issues that impact common or shared areas.

This is significant when deciding who is responsible for reporting a deficiency. It could be the person who owns the property, the condo corporation, the property manager, the builder, the developer or the warranty company. 

What If the Builder Does Not Resolve the Problem?

Maintain a detailed record of any original complaint, responses, inspections and attempts at repairs if the builder fails to correct a problem reported to them. Read through pertinent warranty or dispute resolution process and provide relevant proof in time. In the event of a serious conflict of opinion about the technical, financial, or contractual issues, a qualified professional opinion may also be appropriate.

When a buyer acquires a new construction condo home, his or her first repair request may not always fix the problem. The repair might be incomplete, delayed or unsuccessful, especially if the cause of the problem is hard to determine.

If the issue still exists, verbally communicate with the individual in question in writing. Write a summary of the original report and state what is still unfulfilled and include appropriate photographs, reports, or evidence. 

A useful follow-up process includes:

• Being able to verify receipt of the original complaint.
• Asking to be informed about the proposed repair
• Recording the date of each inspection
• Not documenting incomplete or unsuccessful repairs
• Asking for clarification of outstanding work
• Checking the relevant warranty claim process
• Maintaining records of pertinent costs.
• If appropriate, getting an independent assessment
• Important to follow the applicable dispute resolution process 

When the reason for a problem is in dispute or is hard to determine, an independent inspection might help. This will be determined by the nature of the problem and will be the discretion of the appropriate professional. For instance, if your problem is related to construction work, you might need a professional with expertise in construction, or if it’s an electrical or plumbing issue, you’ll need a licensed specialist. 

Problem → Documentation → Notification → Repair Attempt → Follow-Up → Resolution

It should make it very clear what is accurate and what is an assumption, and should not suggest that what happens to one buyer applies to all condo buyers in Canada. 

Conclusion

Issues found after buying a condo does not imply that it was the wrongly purchased new condo. The right thing to do is to document the problem, communicate clearly, go through the relevant documents and follow the relevant warranty or dispute resolution process. Having all the records in one place can also facilitate communication if repairs are postponed or the problem itself reappears. For anyone buying new construction condo property, understanding what to do after possession can be an important part of protecting the value and condition of the home. On a provincial level, check the rules and regulations, document any deficiencies, and consult competent experts when a major technical, financial or contractual challenge is not easily addressed. Before proceeding, check out your purchase and warranty paperwork and verify the provincial guidelines for reporting and addressing construction issues. 

FAQs

What should I do first after finding a defect in a new condo?

Document the problem first, avoid unnecessary changes in the affected area. Make photographs or videos and make a note on the date of the incident and send a written message to the relevant person. Maintain a record of your communication and supporting documentation so that if more action needs to be taken, you have a record of it. 

Are new construction condos covered by a warranty in Canada?

Warranty coverage will vary contingent on the Province, Property, applicable warranty program, defect, and coverage period of the warranty. Warranty details are listed with the property and the buyer should check what warranties are in effect and what they need to check with the relevant provincial authority before making an assumption as to whether a specific issue is covered. 

What happens if a builder refuses to fix a condo problem?

Make documentation of when the problem was reported and what the builder did about it. Ask for clarification in writing and read the warranties/Dispute Process. If this does not resolve the problem, an independent investigation or professional opinion may be needed to decide upon a next step. 

How long do I have to report a problem with a new construction condo?

For every condo problem in Canada, there is no one single reporting deadline. Requirements may vary by province, warranty program, type of claim, purchase documents and applicable claim process. After the buyer has identified a problem, the requirements should be reviewed in a timely manner. 

Should I get an inspection after buying a new construction condo?

While an inspection may be used to check for any visible deficiencies, it will not necessarily indicate that hidden or future issues will be uncovered. For special concerns related to structure, moisture, electrical, plumbing or other technical issues, there may be more useful evidence available from a professional who has the appropriate expertise.