What does the Tarion warranty cover on a new home?

Every new home built by a registered Ontario builder carries a statutory warranty administered by Tarion. It is not optional and it is not an insurance product you buy, it comes with the home.

The three warranty periods

One year, defects in work and materials, including unauthorised substitutions, and that the home is fit to live in. This is the broadest period and the one that covers the long list of small things you will find in the first months.

Two years, defects in the plumbing, heating and electrical systems; water penetration through the basement or foundation; defects in the exterior cladding, caulking, windows and doors that cause damage; and violations of the Ontario Building Code affecting health and safety.

Seven years, major structural defects. A high bar: failure of a load-bearing element, or damage that materially and adversely affects your use of the home. Not cosmetic, not minor.

Before you close

Tarion coverage starts before occupancy:

• Deposit protection, 10% of the price up to $100,000 on freehold homes over $600,000, or $60,000 at or below. Important detail here.
• Delayed closing compensation, up to $7,500 including living expenses at $150 per day, claimed within 180 days. More.
• Protection against substitution of items promised in your agreement.

The deadlines are the whole game

Warranty claims are deadline-driven, and Tarion applies them strictly.

• Your pre-delivery inspection form records the condition at handover. Do it properly.
• A 30-day form and a year-end form are the two main windows for first-year claims, each submitted within its specific period.
• Later periods have their own forms and windows.

Miss a window and the item generally stops being a warranty claim. Builders will often still fix things informally, but you have lost the enforceable right, and goodwill varies.

Diarise the dates at closing. This is the most common way homeowners lose coverage they were entitled to.

What Tarion does not cover

• Normal wear and tear, and normal shrinkage and settlement.
• Damage from your own alterations or neglect.
• Anything you supplied or had installed by someone other than the builder.
• Most landscaping beyond what the agreement provides. Grading and sodding.
• Secondary or consequential damage in many circumstances.

Register and confirm

Confirm with Tarion directly that your purchase is registered, soon after signing, do not assume the builder has done it, and do not rely on a timeline from a website. Registration affects your deposit protection, and it is a short phone call.