Every new pre-construction home in Ontario comes with mandatory Tarion warranty protection. Here's exactly what it covers and how to use it.
Tarion Warranty Corporation is an Ontario government-established organization that administers the Ontario New Home Warranties Plan Act. Every builder of new homes in Ontario must be registered with Tarion, and every new home must be enrolled in the Tarion warranty program. This is mandatory — not optional — and it's one of the key protections that makes pre-construction a safe choice for buyers.
The warranty protects you against defects in workmanship, building envelope failures, major structural defects, and builder insolvency (up to specified deposit protection limits). Understanding your warranty is critical to protecting your investment.
Covers defects in work and materials anywhere in the home. Includes items like: doors and windows that don't open/close properly, tile grout cracking, paint defects, appliance installations, plumbing and electrical defects, and finishing imperfections. This is the broadest coverage period — almost anything that's wrong gets fixed in Year 1.
Covers defects in electrical, plumbing, heating and cooling delivery systems, and — critically — the building envelope (walls, roof, windows, and waterproofing against water penetration). Water intrusion is one of the most serious (and expensive) defects in new construction, and Year 2 coverage specifically addresses it.
Covers major structural defects that affect the load-bearing elements of the home — foundation failures, structural frame issues, anything that threatens the structural integrity of the building. This is the longest coverage period and addresses the most serious (and expensive) possible failures.
Beyond warranty coverage, Tarion also provides deposit protection if a builder cannot complete your home due to insolvency. The protection limits are:
Buyer Note
Tarion deposit protection has maximums. If your deposits exceed these limits, discuss additional deposit insurance with your lawyer at signing. For a $700,000 condo with $105,000 in deposits, the $20,000 Tarion limit covers only a fraction. Private insurance is available for the gap.
Step 1 — Document Everything at Possession. On the day you take possession of your new home, complete a thorough PDI (Pre-Delivery Inspection) with the builder's representative. Every defect you observe — scratches, improperly installed items, missing finishes — should be noted on the PDI form. Photograph everything. This document becomes the starting point for any warranty claims.
Step 2 — Submit a 30-Day Form. Within 30 days of taking possession, you can submit a 30-Day Form to the builder (and a copy to Tarion) listing any defects discovered in the first month. This is separate from the PDI — it captures problems you find after moving in.
Step 3 — Submit a Year-End Form. Before the 1-year anniversary of your possession date, submit a Year-End Form listing any remaining defects. This is your last chance to report workmanship and material defects under Year 1 coverage.
Step 4 — If the Builder Doesn't Fix. If the builder fails to address warranted items within a reasonable period, you can escalate to Tarion directly. Tarion will investigate and can order the builder to make repairs, or (in extreme cases) arrange for repairs at Tarion's expense and seek recovery from the builder.
Tarion Tip: Register on MyHome.Tarion.com immediately after possession. This online portal lets you track your warranty dates, submit forms electronically, and monitor builder responses. Missing a form deadline can mean losing warranty rights for specific issues.
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