If you’re buying a new home or condo in Ontario, Tarion warranty coverage comes with it automatically. Tarion is the not-for-profit organisation that administers Ontario’s new-home warranty program under the Ontario New Home Warranties Plan Act. Knowing what it covers, and the deadlines for reporting problems, helps you protect your investment.
The three warranty periods
| Warranty | Length | What it covers (summary) |
|---|---|---|
| One-year warranty | First year of possession | Workmanship and materials, Ontario Building Code violations, the home being fit to live in, and unauthorised substitutions |
| Two-year warranty | First two years | Water penetration through the basement, foundation or building envelope; defects in electrical, plumbing and heating systems; defects in exterior cladding; Building Code violations affecting health and safety |
| Seven-year warranty | First seven years | Major structural defects that affect the use of the building or cause failure of structural components |
Condominium common elements, such as the roof, hallways and parking garage, have their own warranty coverage, which the condo corporation’s board manages.
What Tarion does not cover
Coverage is broad but not unlimited. Typical exclusions include normal wear and tear, damage caused by the owner or by improper maintenance, normal shrinkage of materials, and items the builder supplied that come with their own manufacturer warranties, such as appliances. Read Tarion’s homeowner information package for the full list.
Deposit protection
Tarion protects deposits if a builder can’t complete the home, for example after bankruptcy or a fundamental breach of the agreement.
- Freehold homes: deposit protection up to $60,000 for homes priced at $600,000 or less, and up to 10% of the price to a maximum of $100,000 for homes above $600,000.
- Condos: Tarion protects up to $20,000 per unit. Deposits above that must be held in trust or secured under the Condominium Act.
Upgrade and extra payments can also be protected within the limits. This is one reason to understand your deposit structure before signing.
Delayed closing and occupancy compensation
Every Ontario new-home agreement includes a Tarion Addendum that sets out the critical dates and how the builder can extend them. If the builder misses the required notice deadlines or delays beyond what the addendum allows, you may be entitled to compensation, up to a capped amount for living expenses plus a daily allowance. Keep every notice the builder sends about dates.
Key forms and deadlines
Missing these windows can limit your warranty rights, so mark them on your calendar on move-in day.
- Pre-delivery inspection (PDI): done with the builder before you take possession. Record every visible defect. See what to expect at your inspection.
- 30-day form: submit within the first 30 days of possession to list outstanding items.
- Year-end form: submit in the last 30 days of your first year.
- Second-year form: submit in the last 30 days of the second year, for two-year warranty items.
- Major structural defect claims: can be submitted any time within the seven-year period, as soon as the problem is discovered.
After you submit a form, the builder has a set period to fix the items. If they don’t, you can request a conciliation inspection from Tarion.
Builder licensing and the Ontario Builder Directory
Since 2021, builder licensing in Ontario has been handled by the Home Construction Regulatory Authority (HCRA), while Tarion continues to run the warranty program. The Ontario Builder Directory brings both together, showing licence status and warranty history. Check it as part of choosing a developer.
How Tarion fits into the buying process
Warranty coverage begins on the date you take possession. For condos, that’s usually interim occupancy rather than final closing; our guide to occupancy vs final closing explains the difference. A Tarion enrolment fee is commonly charged back to buyers on the statement of adjustments; see closing costs for pre-construction homes.
Buying outside Ontario?
Other provinces have their own mandatory new-home warranties. British Columbia and Alberta, for example, require 2-5-10 and 1-2-5-10 style coverage respectively through approved warranty providers. If you’re looking at Calgary or Edmonton, ask the builder for the warranty provider and certificate details.
Frequently asked questions
Does Tarion cover condo townhomes and stacked towns?
Yes. New condo units of all types, including townhome and stacked-townhome condominiums, are covered, along with the condo’s common elements.
Does the warranty transfer if I sell?
Yes. Coverage stays with the home for the remainder of each warranty period, which can be a selling point for a nearly new home.
Are assignments covered?
The home remains covered, and the person who takes possession becomes the owner for warranty purposes. See our assignment sale guide.
This is a summary for general information. Tarion’s homeowner information package and your purchase agreement are the official sources; check them or speak with a real estate lawyer for your situation.
