(NC) Building new homes illegally is a topic that doesn't get much attention, but it can significantly affect one of life's largest purchases. There are lasting repercussions to both consumers and registered builders alike.

For consumers, it could mean their new home is being built by someone who does not actually have the proper financial or technical ability. It could also mean that the home is poorly built and does not meet the province's building code specifications. It could even be a hazard to live in.

Buyers or property owners may face unexpected liability issues during the construction of an illegally built home, especially if an on-site accident happens. Once the home is complete, the buyer may not understand their rights or responsibilities under the statutory new home warranty.

For registered builders, illegal building can create unfair competition. It promotes an underground economy and since many illegally built homes are eligible for warranty protection under the legislation, registered builders effectively subsidize the warranty on these homes.

Illegal building also can have a potentially negative impact on the reputation of the industry overall.

A recent survey conducted shows that an alarming 69 per cent of Ontarians do not know that all builders must be registered. Make sure you're protected by being aware of some common red flags:

• The builder says you don't need a Tarion warranty because they offer their own.

• They give you an inflated cost for the Tarion warranty; the maximum cost is $1,500.

• They say they built the home for themselves but then decided to sell it.

• They give you a short contract to sign or worse, no contract at all.

Attention editors: This article is for distribution in Ontario only.

www.newscanada.com

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