What is Tarion Warranty?

In Ontario, every newly built home must come with a builder-backed warranty. Tarion helps ensure buyers receive the protections they’re entitled to, covering certain risks before possession (like deposits and delays) and certain issues after possession (like deficiencies and major structural defects), for up to 7 years.

Quick idea

Think of Tarion as the warranty framework behind most new homes in Ontario: it sets rules, timelines, and compensation standards so buyers aren’t left unprotected.

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How it works

Warranty coverage begins when you sign the Agreement of Purchase & Sale and can continue for up to 7 years after possession. The warranty can remain in effect even if ownership is transferred during that period (subject to the rules of the plan).

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Who provides the warranty

A new home built by a builder or vendor licensed under HCRA may qualify if it meets criteria outlined in Ontario’s warranty legislation (Ontario New Home Warranties Plan framework).

Summary of Coverage Before You Take Possession

Deposit Protection Delayed Closing/Occupancy
  • Deposit protection: helps protect deposits if the builder goes bankrupt, breaches the agreement, or you can terminate under statutory rights (limits vary by date signed and price).
  • Delay coverage: provides compensation rules if the builder misses agreed occupancy/closing dates without a valid reason (unavoidable delays can change this).
Read full “Before Possession” article →

Summary of Coverage After You Take Possession

1-Year 2-Year 7-Year MSD
  • 1-year: workmanship/material defects, unauthorized substitutions, and certain Building Code issues.
  • 2-year: water penetration in the envelope plus major system issues (plumbing, electrical, heating).
  • 7-year MSD: major structural defects affecting the building’s integrity (load-bearing failures, serious structural damage).
Read full “After Possession” article →

Additional Coverages

Extended warranty for missing items If something is missing at possession, the warranty for that item can start once it’s installed. You must report the absence within the first year.
Temporary relocation allowance May help cover temporary accommodation if your home becomes uninhabitable due to a warranted issue (subject to program rules).
Builder enrolment fee Builders pay Tarion enrolment fees and typically charge them to the purchaser on final closing.

Exclusions (what’s commonly not covered)

Like any warranty, certain items are excluded, such as normal wear and tear, homeowner-caused damage, and unapproved alterations.

See common exclusions Click to expand
  • Normal wear and tear
  • Damage caused by the homeowner or visitors
  • Alterations/additions not approved or outside warranty scope
  • Some pest-related damage (depending on circumstances)

Always confirm exclusions and deadlines in the Tarion documents and your agreement.

Note: For specifics, always refer to the Tarion Addendum and consult your legal advisor where appropriate.