Building Issue Reported too Late

March 12, 2008

Reference Number. 26393-970110

TSCC. 1431
c/o Susan Jamieson
Newton- Trelawney Property Management Ltd.
11 Lee Centre Dr.
Scarborough ON
M1H 3J5

Dear Susan Jamieson,

Re: Your Recent Letter on Behalf of TSCC # 1431

This will acknowledge receipt of your recent letter dated March 7, 2008 regarding a common element concern relating to Item # 4.5.2. reported in the Two Year Warranty Review received by Tarion Warranty Corporation on March 25, 2004.

Our records indicate this issue was received after the expiration of the builder's 1^st year warranty for the common elements. Therefore, it appears that this concern was reported too late for the applicable warranty coverage. Please be advised that only Major Structural Defect (MSD) warranty remains in effect at this time. We have enclosed a copy of our definition for MSD for the Condominium Corporation's review.

All new homes/condominiums sold in Ontario have basic warranty protection against unauthorized substitutions, delayed closings, substandard work, defective materials, Ontario Building Code violations, water penetration and major structural defects. For more information about the warranty protection on the Condominium Corporation's condominium, check the Warranty Protection section of our Web site at www.tarion.com.

Sincerely,
Samantha Rieder
Claim Service Representative

INFORMATION SHEET

DEFINITION OF A MAJOR STRUCTURAL DEFECT
Regulation 892 of the Ontario New Home Warranties Plan Act

PART 1

“Major Structural Defect” means, for the purpose of clause 13(1)(B) of section 13 of the Act, any defect in work or materials,

that results in failure of a load-bearing portion of any building or materially and adversely affects its load-bearing function, or
that materially and adversely affects the use of such building for the purpose of which it was intended,

including significant damage due to soil movement, major cracks in basement walls, collapse or serious distortion of joints or roof structural and chemical failure of materials, but excluding any defect attributable in whole or in part to a year 2000 compliance problem, flood damage, dampness not arising from failure of a load-bearing portion of the building, damage to drains or services, damage to finishes and damages arising from acts of God, acts of the owners and their tenants, licensees and invitees, acts of civil and military authorities, acts of war, riot or insurrection or civil commotion and malicious damage;

(Revised, 0. Reg. 430/99)