What Is It?
In Ontario, new homes built by registered builders are automatically backed by a statutory warranty administered by Tarion (the Tarion Warranty Corporation, previously the Ontario New Home Warranty Program). The warranty cannot be waived or contracted out of — any agreement purporting to limit or exclude the warranty is void. Every new home sale in Ontario must be covered, and builders must be registered with Tarion.
Other provinces have similar programs: BC has the BC Housing Homeowner Protection Office, Alberta has the Alberta New Home Warranty Program, and most other provinces have equivalent legislation.
Ontario — Tarion Warranty Coverage
Deposit protection:
- Deposits up to $60,000 are protected if the builder fails to complete construction or goes bankrupt
1-Year Warranty (Defects in Work and Materials):
- Covers unauthorized substitutions of materials, defects in work and materials, violations of building codes
- Report defects within the first year on the 30-day form (submit within 30 days of possession) and the year-end form (submit 30 days before or after the first anniversary of possession)
2-Year Warranty:
- Water penetration through the building envelope (roof, windows, doors, foundation)
- Defects in work or materials related to the electrical, plumbing, and heating delivery systems
- Defects in work or materials that cause detachment, displacement, or deterioration of exterior cladding
7-Year Major Structural Defect Warranty:
- Covers major structural defects — defined as actual or substantial failure of a load-bearing part of the home, or a defect that makes the home uninhabitable
- Covers the full 7-year period from the date of possession
How to Make a Warranty Claim
Step 1 — Submit defects in writing on a Tarion form. Tarion provides specific forms for each warranty period (30-day, year-end, second-year). Defects must be reported on these forms within the applicable windows — defects reported outside the deadlines may not be covered.
Step 2 — The builder has 120 days to repair. After receiving a warranty form, the builder typically has until a defined date to complete repairs. Track this timeline carefully.
Step 3 — If the builder fails to repair, contact Tarion. Submit a conciliation request to Tarion if the builder has failed to complete repairs by the deadline. Tarion will conduct an on-site conciliation assessment to determine whether the item is covered.
Step 4 — Tarion issues a Decision Letter. If Tarion determines the defect is a warranty item and the builder has not repaired it, Tarion can direct the builder to repair it or provide the homeowner with compensation to repair it.
What Most People Don’t Know
- The 30-day form deadline is critical. Many homeowners discover defects in the first weeks after possession but don’t know they need to submit the Tarion 30-day form. If you miss this window, some items may fall under the first-year form, but report early and in writing regardless.
- “Cosmetic” defects have strict definitions. Minor cracks in drywall, paint issues, and surface finishes may be treated as cosmetic — but recurring or worsening cracks can indicate a structural issue that is a warranty item. Document everything with photographs.
- Builders cannot charge for warranty repairs. Any builder who tries to charge for work that falls within the Tarion warranty period is violating the warranty. All covered repairs must be performed at no cost to the homeowner.
- Going out of business doesn’t void the warranty. If a builder closes, Tarion covers the remaining warranty obligations from its statutory warranty protection fund. Tarion registration provides financial protection, not just dispute resolution.
Frequently Asked Questions
My builder keeps delaying the warranty repairs and saying they’ll come “soon.” What are my rights?
Request all commitments in writing and track the builder’s 120-day repair window from the date of the warranty form submission. If the deadline passes without completion, immediately file a conciliation request with Tarion — don’t wait for verbal commitments.
My new condo was built by a different developer than the builder who now manages the building. Does the warranty still apply?
Yes — the Tarion warranty follows the unit, not the builder’s ongoing involvement. The current condominium corporation and the original builder-developer remain bound by the warranty obligations for the applicable period.
I’m in BC buying a new home. What’s the equivalent program?
BC’s Homeowner Protection Act requires all new homes to have home warranty insurance. The warranty periods are similar: 2 years for labour and materials, 5 years for building envelope, and 10 years for structural defects. The warranty provider is private (one of several licensed providers) rather than a provincial corporation.
Can I waive the Tarion warranty to get a better purchase price?
No — Ontario’s Ontario New Home Warranties Plan Act makes the warranty mandatory and any waiver void and of no effect. A builder who attempts to require a waiver is violating provincial law and should be reported to Tarion and the Ministry of Consumer Services.