Legal

Tarion Warranty

Ontario's new home warranty program, administered by Tarion Warranty Corporation. It provides coverage for defects in materials and workmanship (1 year), water penetration and distribution systems (2 years), and major structural defects (7 years) for newly built homes. All new home builders in Ontario must be registered with Tarion.

Why It Matters

If you're buying a new build or pre-construction home, Tarion is your safety net. It covers deposit protection if the builder goes under, and it holds builders accountable for construction quality. Know your warranty timelines and document everything -- Tarion claims have strict deadlines.

Real-World Example

You purchase a new-build townhouse in Pickering. Six months after moving in, you notice cracks forming in the drywall and the garage door is not sealing properly. You submit a Tarion warranty claim within the one-year warranty period. Tarion inspects the home and determines the builder must repair the drywall cracks and replace the garage door seal at no cost to you.

Ontario & GTA Context

Tarion is unique to Ontario -- no other Canadian province has an equivalent mandatory new home warranty corporation. Coverage includes deposit protection (up to $60,000 for freehold, $20,000 for condos), one-year coverage for defects in workmanship and materials, two-year coverage for water penetration and plumbing, and seven-year coverage for major structural defects. Buyers of new condos also receive Tarion's common element warranty coverage through their condo corporation.

How It Works in Practice

When buying a new build, complete your 30-day, year-end, and second-year Tarion forms on time -- these deadlines are strict and missing them can void your claim. Document every defect with photos and written descriptions. Tarion also offers pre-delivery inspection (PDI) guidance to help you identify issues before you take possession.

Common Questions

Does Tarion cover resale homes?▾

No. Tarion only covers newly built homes in Ontario that were constructed by a Tarion-registered builder. Resale homes are not covered. However, if the home is relatively new and still within the Tarion warranty period, the remaining coverage transfers to the new owner.

What if my builder goes bankrupt before finishing my home?▾

Tarion provides deposit protection for buyers of new homes. If your builder cannot complete the home, Tarion can reimburse your deposit up to $60,000 for freehold homes or $20,000 for condos. This applies to deposits paid to the builder for new construction in Ontario.

Related Terms

Home Inspection

Structural Issue

Related Guides

First Time Buyer

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