TARION WARRANTY PROGRAM
By law, all new homes built in Ontario are provided with a warranty by the builder. Tarion's role is to ensure that buyers of newly built homes in Ontario receive the coverage they are entitled to under their builder's warranty.
What is the Tarion Warranty?
The Tarion Warranty Program is Ontario's new home warranty provider, protecting buyers of newly built homes. Coverage includes financial protection before you take possession and protection against construction defects after you take possession.
The warranty is provided by the builder and backstopped by Tarion. As the warranty provider, the builder is responsible for resolving warranty issues directly with a homeowner. In the event that a builder fails to resolve an issue, the homeowner can make a claim with Tarion.
A new home built by an HCRA licensed builder/vendor is eligible. The coverage begins when you sign the Agreement of Purchase & Sale, and remains in effect for up to 7 years even if the home is sold.
Who It Protects
Freehold Homes
Single-family homes, townhouses, and semi-detached properties under 7 years old
Condominiums
Condo units and condo conversions purchased from licensed builders
Contract Homes
Homes built under contract on land owned by the buyer
Warranty Coverage Timeline
Before You Take Possession
Financial protection from the date you sign the Agreement of Purchase & Sale until you take possession:
- Deposit Protection: Up to $20,000 if builder fails to complete the home
- Delayed Closing/Occupancy: Compensation for delays beyond the agreed date
- Condominium Cancellations: Protection if project is cancelled
1-Year Warranty Coverage
Coverage for defects in materials and workmanship:
- Defects in materials and workmanship
- Violations of the Ontario Building Code
- Defects in materials and work that do not meet Ontario Building Code
- Unauthorized substitutions from purchase agreement
2-Year Warranty Coverage
Extended coverage for specific building systems:
- Defects in materials and work in the electrical, plumbing, and heating systems
- Water penetration through the building envelope
- Defects in materials and work that violate Ontario Building Code
7-Year Major Structural Defect Coverage
Long-term protection for major structural issues:
- Major structural defects that affect the use of the home
- Defects in materials and work that result in structural damage
- Foundation, load-bearing walls, and structural elements
Coverage Limits
For Agreements Signed on or After July 1, 2023
- Maximum coverage for freehold homes: $400,000
- Maximum coverage for condominium units: $300,000
- Maximum coverage for condominium common elements: $100,000 × number of units (up to $3.5 million)
- Maximum $50,000 for damage caused by environmentally harmful substances
Why Get a Professional Tarion Warranty Inspection?
While Tarion provides warranty coverage, having a professional home inspection before your warranty periods expire is crucial to protect your investment.
Schedule inspections at 30 days and before your 1-year warranty expires to document all issues
Professional inspectors identify defects you might miss and provide detailed reports for Tarion claims
Ensure all warranty-covered items are identified and claimed before deadlines expire
Know your new home is built to standards and any issues are properly documented