Buying a new home in Ontario? Congratulations! Along with the excitement comes the responsibility of understanding your rights—and that’s where Tarion steps in. This Tarion warranty guide will walk you through everything from deposit protection to long-term coverage and claims. Whether you’re signing a contract now or just exploring your options, this guide ensures your new build protection aligns with your expectations—and that you’re prepared if issues arise.
1. What Is Tarion and Why It Matters
Tarion is a not-for-profit agency created under the Ontario New Home Warranties Plan Act. Its role is to protect new-home buyers in Ontario by ensuring that builders follow the law and buyers receive the coverage they’re entitled to. Builders must enroll each new home with Tarion before issuing a purchase agreement, which secures your protection from the moment you sign.
2. Coverage Periods & What They Include
Tarion warranty protection spans from purchase through to seven years after you move in. Here’s how it works:
Before You Move In
- Deposit protection: If the builder goes bankrupt or breaks the contract, you’re covered up to $100,000 (or 10% of the sale price) for freehold homes.
- Delayed closing: If closing is unfairly postponed, you may claim up to $7,500.
- Cancellations and contract-home protection: Coverage up to $40,000 protects against builder default.
After You Move In
- 30-day warranty: Covers issues noted during your pre-delivery inspection (PDI) or within 30 days of moving in.
- 1-year warranty: Builder must repair defects in workmanship or materials and ensure compliance with the Ontario Building Code.
- 2-year warranty: Protects key systems such as plumbing, heating, and electrical, plus water penetration and building envelope issues.
- 7-year major structural defect warranty: Covers serious structural failures, such as foundation problems or collapsed load-bearing elements.
3. What’s Covered… and What’s Not
Covered:
- Work not done properly
- Faulty systems and water penetration
- Structural failures
- Losses from deposit or delay (under specific conditions)
Not Covered:
- Normal wear and tear such as small cracks or shrinkage
- Homeowner-caused damage or modifications
- Pre-existing issues or third-party problems (e.g., landscaping)
- Settling that does not affect structural integrity
4. How to Make a Claim
- Report early – Notify your builder in writing as soon as you notice a problem.
- Give builder a chance – Builders are responsible for fixing issues first. If they fail, Tarion can step in.
- Use the MyHome portal – Register after taking possession. It lets you file and track claims online.
- Escalate if needed – If unresolved, Tarion can inspect and enforce repairs or compensation.
5. Your Role as a Homeowner
- Attend the Pre-Delivery Inspection and document all concerns.
- Know the claim deadlines: 30 days, 1 year, 2 years, and 7 years.
- Maintain your home properly with regular upkeep.
- Provide access for inspections and repair work.
6. Builder’s Responsibilities
- Enroll your home with Tarion before construction starts.
- Conduct the PDI with you and issue a warranty certificate.
- Respond promptly to claims and complete repairs on time.
7. Updates & Important Changes for 2025
Starting July 2025, buyers must notify Tarion of their purchase within 45 days of signing. Missing this step may limit deposit protection if total claims exceed a central fund. To preserve your full rights, act quickly after signing.
8. Real-Life Example
Jane bought a new condo in Ottawa. During her PDI, she flagged scratched hardwood and sticky windows. She reported both within 30 days, and the builder fixed them right away. Two years later, a plumbing leak appeared. Jane reported it through the MyHome portal, and Tarion required the builder to repair the damage. Jane didn’t pay out of pocket—her coverage worked exactly as intended.
9. Tips to Maximize Your Coverage
- Confirm your builder is licensed with the Home Construction Regulatory Authority.
- Bring an inspector or knowledgeable friend to your PDI.
- Always use the MyHome portal to track deadlines and claims.
- Keep all communication with your builder in writing.
- Follow up consistently; Tarion can step in if the builder delays.
Conclusion
Tarion provides Ontario homeowners with essential protection that begins with your deposit and extends up to seven years after you move in. By understanding your coverage periods, staying on top of deadlines, and using the MyHome portal, you’ll safeguard your investment and peace of mind. If defects arise, the warranty ensures that your rights as a homeowner are protected.
Source : fulinspace.com