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Few realtors realize, that a Buyer of a new home from a builder who wants to resell the home without ever moving into the home, must register with Tarion.
Realtors for both the Sellers and Buyers of new homes being flipped must be aware that Tarion has introduced a letter agreement that sellers must provide to the ultimate Buyer with a disclosure page. The Disclosure page requires Sellers to state that the sale is effectively a resale. The Seller must also state the original warranty start date; the status of the remaining warranty coverage; and, contact information to permit the Buyer to check on the status of any claims.
Realtors can obtain the agreement from Tarion and use it as a schedule to the Agreement of Purchase and Sale.
The Re-Seller/Flipper must file an application with Tarion. These applications will be processed in a â€œfast trackâ€ manner. The home will remain enrolled under the original Seller/Builder.
Even though Re-Sellers are responsible for making the application to Tarion, Sellerâ€™s Realtors need to ensure clients are made aware of these requirements to protect themselves from liability.
When I spoke recently at a real estate office, I was amazed to note that not many agents were aware of the Tarion requirements on a flip. Â If you are interested in obtaining more information on these regulations, weÂ would be happy toÂ send you the Tarion document. Â To request your copy,Â pleaseÂ email us atÂ firstname.lastname@example.org.