In this post, we break down Tarion warranty coverage for new homes in Ontario.

Tarion administers warranty coverage for most new homes in the province of Ontario.  Warranty provisions can impact new homes, as well as existing housing stock to which coverage still applies.

In Ontario, every builder constructing a new home must be registered with Tarion.  In order to qualify, a builder must:

New home warranty is regulated by the following legislation:

How does Ontario Tarion Coverage Work?

There are several different types of warranties, each with their own warranty period. Each warranty begins on the date of possession, except for the warranty on a condominium’s common element, which begins on the registration of the condo declaration and description.  Regardless of the Tarion warranty type, coverage runs with the land, and it begins the date that the owner takes possession; meaning, if you purchase a newly-constructed home from its original owner, it is possible that the home is still covered by one or more Tarion warranties.  The ‘warranty clock’ does not restart, and applies for a maximum of seven (7) years.

Builders will pass on to the buyer any warranties given by manufacturers, suppliers and subcontractors that extend beyond the first year (in which case, should you have a claim, you would claim directly with the manufacturer or distributor).

Ontario Tarion Warranty Coverage Types

Tarion warranty coverage is broken down into three categories:

In addition, and within this coverage, new construction homes also have protection relating to deposits, delayed closings and substitutions of finishes and materials.  However, it is critical to understand that not all new homes and not all damages are covered.

We break down the three Tarion warranty categories below.

One-Year Tarion Warranty

This warranty applies for one year, beginning when the owner takes possession. It includes:

Two-Year Tarion Warranty

This warranty applies for two years, beginning when the owner takes possession. It includes coverage for:

Seven-Year Tarion Warranty

This warranty is also referred to as the “major structural defects warranty”.  A major structural defect is any defect in work or materials, with respect to a building, that:

If you are a builder with questions about whether Tarion applies to your newly constructed project, please do not hesitate to give us a call. If you are a purchaser dealing with a Tarion claim against your builder or condominium corporation, we can assist you as well.

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