Key takeaways
- The builder provides the warranty; Tarion administers the protection and can become involved where a covered issue is not resolved.
- Different warranty periods cover different defects. Seven years does not mean comprehensive coverage for every item.
- Deposit and delay protection have separate conditions and limits.
- Keep records, register your purchase as directed and submit claims within the required deadlines.
Who provides the new-home warranty?
The warranty comes from the builder under Ontario’s statutory new-home warranty system. Tarion backstops the protection and assesses claims where the builder does not resolve an issue or disputes coverage. The HCRA is the separate regulator responsible for builder and vendor licensing and conduct. [1, 2]
Check the builder and vendor before buying and confirm the home’s warranty position. A licensed builder, an enrolled home and a successful claim are related but different matters. An owner-built home or unusual conversion can require specific advice about whether the statutory scheme applies.
You do not normally lose the remaining construction-warranty period merely because a covered home is sold. A resale buyer of a relatively new home should obtain the warranty documents, outstanding claim information and applicable possession dates. [1]
What is covered during the first year?
The one-year warranty generally addresses workmanship and materials, fitness for habitation, compliance with the Ontario Building Code and unauthorized substitutions. The precise standards and exclusions govern whether an item is covered. [3]
A pre-delivery inspection helps document the home’s condition before possession. Record incomplete work, damaged finishes and items that do not match the agreement. Take photographs and keep a copy of the inspection record.
Listing an item at the inspection is useful evidence, but homeowners must still follow Tarion’s reporting process. Do not assume that mentioning a concern to the site supervisor automatically submits a warranty claim.
What do the two-year and seven-year warranties add?
The two-year warranty includes specified water-penetration problems, defects in certain electrical, plumbing and heating distribution systems, and other defined matters such as certain health-and-safety Building Code violations. [3]
The seven-year protection concerns major structural defects. It addresses defined serious failures affecting load-bearing functions or materially and adversely affecting the use of the building as a home. It does not extend ordinary cosmetic or workmanship coverage for every component through year seven. [3]
For a condo, common-element claims are generally handled through the condominium corporation. The common-element warranty has its own start date and process. Tell management about a suspected building-wide issue while also protecting any claim relating to your own unit. [4]
What is not automatically covered?
Normal wear, inadequate maintenance, damage caused by the owner and other excluded conditions are not automatically warranty defects. A crack or leak must be assessed against its cause, the applicable performance standard and the coverage period. [3]
Maintenance obligations continue after you move in. Follow the builder’s instructions for heating, ventilation, humidity and seasonal care. Keep service records where they may help explain what happened.
Tarion protection also has dollar limits. Some depend on the type of home and the date of the relevant purchase agreement. A seven-year warranty should not be described as unlimited insurance for the home’s entire value. [1]
Are my deposit and closing date protected?
There can be pre-possession coverage for specified deposit losses, delayed closing or occupancy, and other defined risks. The applicable amounts and claim conditions differ between freehold homes, condominiums and contract homes. [5]
For condominium purchases, statutory trust protections also matter. For freehold purchases, deposit coverage limits depend on the relevant price and agreement rules. Do not assume that every dollar paid for upgrades, every delay expense or every cancelled project is fully reimbursed.
For new freehold homes, Tarion directs purchasers to notify it of their purchase within 45 days of signing the agreement. Its current guidance defers the related deposit-coverage changes until January 1, 2027. Follow the registration guidance promptly and check the rules for your agreement; the notice requirement should not be confused with the later process for submitting a construction-warranty claim. [5]
What should I do if I find a problem?
Document it and notify the builder in writing. Use Tarion’s MyHome system and current claim guidance to submit the issue in the appropriate reporting period. Track any builder repair period and the deadline to request Tarion’s involvement. The builder’s promise to return later should not replace a required submission. [6]
For an emergency, take reasonable steps to protect people and limit further damage, and follow the emergency reporting instructions. Keep photographs, correspondence, inspection reports and invoices. If the builder disputes whether an issue is covered, those records will help establish the facts.
About the author — Gathyayini Manoharan
Gathyayini Manoharan is a lawyer licensed by the Law Society of Ontario (LSO #75591T, licensed since 2018) and a Practice Lead at iClosed. Her practice is Ontario residential real estate, and she works on purchase, sale and refinance files from retainer through to reporting. Her Law Society record can be verified at https://lsodirectory.lso.ca/en-US/licensee-detail/?lawsocietynumber=75591T. This article is general information about Ontario law and practice, not legal advice. It does not create a lawyer-client relationship. For advice on your own transaction, speak with a licensed Ontario real estate lawyer.
Sources
- Tarion — What is the new home warranty. — https://www.tarion.com/homeowners/the-new-home-warranty
- HCRA — Ontario Builder Directory. — https://obd.hcraontario.ca/
- Tarion — Coverage for freehold contract condo units and condo conversions. — https://www.tarion.com/homeowners/coverage-freehold-contract-condo-units-condo-conversions
- Tarion — Common elements coverage. — https://www.tarion.com/common-elements-coverage
- Tarion — Coverage and claims before you move in. — https://www.tarion.com/homeowners/pre-possession-coverage
- Tarion — Homeowners. — https://www.tarion.com/homeowners
This article provides general information about Ontario law and closing practice as of October 26, 2026. It is not legal or tax advice and does not create a lawyer-client relationship. Your agreement of purchase and sale, your lender’s instructions and your own circumstances control what applies to you. Rates, thresholds and rules change — confirm current figures before relying on them.