If you are buying a newly built home in Ontario, your builder is legally required to provide a statutory warranty administered by Tarion (now the Home Construction Regulatory Authority). This warranty is mandated by the Ontario New Home Warranties Plan Act and gives buyers protection for up to seven years after possession — but only if you understand how to use it. Many Ontario new home buyers have warranty protection they never successfully claim. The warranty has strict notice requirements: you must submit a 30-day form, a Year One form, a Year Two form, and in some cases a 7-year form at specific intervals. Miss the deadline, and you may lose coverage for defects you would otherwise have been entitled to have repaired at the builder's expense.
What is a Tarion Warranty Coverage?
The Tarion warranty (now administered by HCRA — Home Construction Regulatory Authority) is a statutory warranty that all Ontario new home builders must provide. Coverage has three tiers: (1) Years 1-2: deposit protection, workmanship and materials, Ontario Building Code compliance, and protection against defects; (2) Years 1-7: major structural defects. Coverage limits apply (e.g., up to $500,000 per single/semi-detached home for deposit and completion coverage). The builder is the primary warrantor — Tarion steps in only when the builder refuses or is unable to fulfill its obligations.
Red flags to watch for
The Tarion warranty is a statutory right under the New Home Warranties Plan Act. A builder cannot contractually exclude it. Any clause attempting to do so is void.
Under Tarion rules, buyers are entitled to delayed closing compensation if the builder misses the occupancy date by more than the permitted grace period. The purchase agreement should reference this entitlement.
The Tarion warranty exists independently of the builder's internal policies. A clause directing disputes to the builder's own process — rather than Tarion — may be an attempt to discourage valid claims.
The 30-Day Form, Year One Form, and Year Two Form have strict submission deadlines tied to occupancy or closing dates. A purchase agreement that doesn't reference these deadlines means buyers are often unaware of them.
Standard upgrades and extras should still be covered by the Tarion warranty if they are permanently installed. A clause purporting to exclude all upgrades from warranty is worth challenging.
Your legal rights
The Ontario New Home Warranties Plan Act (R.S.O. 1990, c. O.31) requires all new home builders and vendors to be registered with the Home Construction Regulatory Authority (HCRA) and to provide a statutory warranty to buyers. The warranty covers: (1) One year from possession: workmanship, materials, and Ontario Building Code violations; (2) Two years from possession: water penetration, heating/electrical/plumbing systems, and Ontario Building Code violations; (3) Seven years from possession: major structural defects. Deposit protection applies up to $100,000 for freehold homes. To make a claim, submit the relevant Tarion warranty form by the deadline. Claims can be escalated to Tarion if the builder refuses to remedy defects.
Questions to ask before you sign
- 1Are you registered with the HCRA and do you provide a Tarion warranty on this property?
- 2What is the critical date for occupancy, and what delayed closing compensation applies if you miss it?
- 3Can you walk me through the 30-Day, Year One, and Year Two Tarion form deadlines?
- 4Are all the extras and upgrades I'm purchasing covered under the Tarion warranty?
- 5What is your process for responding to warranty claims — and what happens if I escalate to Tarion?
- 6What is the deposit amount, and is it protected under Tarion's deposit insurance?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.