When you buy a newly built home or condo in Ontario, it comes with warranties and protections from Tarion that was created by the Government of Ontario in 1976 to administer the Ontario New Home Warranties Plan Act. The Ontario government, through the Ministry of Consumer Services, has empowered Tarion to administer and enforce the Act.
Protection for Newly Built Home Buyers
Its primary purpose is to protect consumers of new homes by ensuring that builders abide the provincial legislation. It is financed entirely by builder registration, renewal and home enrollment fees.
As the regulator of Ontario’s new home building industry, Tarion registers new home builders and vendors, enrols new homes for warranty coverage, investigates illegal building practices, resolves warranty disputes between builders/vendors and homeowners, and promotes high standards of construction among Ontario’s new home builders.
Tarion also works with the building industry to help educate new home buyers about their warranty rights, and about how to protect and maintain their warranty.
Tarion Newly Built Home Warranties
As a new home buyer, you are entitled to these warranties by law.
Newly built homes have 1-year, 2-year and 7-year warranties. They cover matter such as:
- bad workmanship
- water penetration
- major structural defects
The warranties also cover delayed closing and delayed occupancy. You also have other protections, such as deposit protection.
Some of the warranties take effect on the date of possession. They stay in effect even if the owner sells the house or condo unit before the end of the warranty period.
Coverage may vary depending on the type of home you buy. For example, homes built on existing footings or foundations may not be covered. Pre-existing elements of residential condo conversion projects (existing buildings that are typically non-residential and converted to condos) are not covered by some of the 1-year warranties.
Tarion’s Homeowner Information Package
Tarion has a Homeowner Information Package with detailed information on the program. This package explains:
- what’s included and not included in the warranties and protections
- how to make warranty or protection claims
- what happens after you make a claim and how to appeal a claim decision
- how to protect the warranty on your new home (for example, attend your home’s pre-delivery inspection with your builder, keep track of warranty deadlines)
Although the Ministry of Government and Consumer Services is not able to intervene in individual warranty cases, you may contact them if you have a complaint about Tarion. If you consent to the ministry sharing your complaint with Tarion, they may contact Tarion on your behalf and ask for a response.
Additional Resources
- What to know before buying a home
- Read the Ontario New Home Warranties Plan Act
- Learn more about the Tarion Warranty Corporation
Sources:
- https://news.ontario.ca/mgs/en/2019/10/ontario-strengthening-the-transparency-of-the-tarion-warranty-corporation.html
- https://www.ontario.ca/page/what-know-before-buying-home#section-3
- https://www.tarion.com/resources/homeowner-information-package
