Tarion and New-Home Warranty Guide
Ontario's new home warranty is statutory, not optional. Here is what it covers, for how long, and how to use it properly.
Every new home built in Ontario by a licensed builder is enrolled in the provincial new home warranty programme. Buyers frequently treat it as paperwork. It is in fact a substantial protection, and it has deadlines that are strictly enforced.
Who does what
Tarion administers the warranty programme, handles enrolments, resolves warranty claims and manages the deposit protection framework. The Home Construction Regulatory Authority licenses builders and vendors and regulates their conduct.
Before you buy, you can look up a builder in the HCRA's public register to confirm their licence status and review their record.
The coverage periods
| Period | What is covered |
|---|---|
| One year | The home is fit to live in, built to the Ontario Building Code, and free from defects in work and materials. Also covers unauthorised substitutions. |
| Two years | Water penetration through the basement or foundation; defects in work or materials in the electrical, plumbing and heating delivery and distribution systems; defects in the exterior cladding that result in water penetration; violations of the Building Code affecting health and safety. |
| Seven years | Major structural defects — defects in load-bearing elements that materially affect the use of the home. |
Deposit protection and delayed closing
The programme protects buyer deposits up to statutory maximums, which differ between freehold homes and condominium units. It also provides compensation where a builder delays closing or occupancy without giving proper notice under the agreement.
Both the deposit limits and the delayed-closing compensation figures are set by regulation and have been revised over time. Confirm the current amounts directly with Tarion and with your lawyer when you sign.
The pre-delivery inspection
Before you take possession you conduct a pre-delivery inspection with the builder and record the condition of the home on the statutory PDI form. This is the single most consequential hour of the entire warranty process.
Go slowly. Open every window and door. Run every tap and appliance. Check every outlet. Photograph everything, including items that seem trivial. You may bring someone with you, including a professional inspector, and doing so is worth the cost.
Items recorded on the PDI form are documented from day one. Items not recorded must be raised through the statutory forms within the applicable deadlines, and those deadlines do not move.
Making a claim
Warranty claims are submitted to Tarion through defined forms within defined windows — commonly a 30-day form early in the first year, a year-end form, and second and major-structural forms for the longer periods. Missing a window can extinguish a claim regardless of its merit.
Keep a written record of every issue with the date you noticed it. Report to the builder in writing, and escalate to Tarion within the applicable window if the builder does not resolve it.
What is not covered
The warranty does not cover normal wear and tear, damage caused by the homeowner, neglect or improper maintenance, secondary damage from a defect the owner failed to mitigate, settling within accepted tolerances, or items supplied and installed by the homeowner after closing.
It also does not substitute for home insurance. Arrange your own coverage effective from the closing date.
Practical advice
- Confirm the builder's HCRA licence before you sign.
- Keep the enrolment confirmation with your closing documents.
- Diarise the 30-day and year-end form deadlines the moment you take possession.
- Report every issue in writing, never by phone alone.
- Read Tarion's construction performance guidelines to understand what tolerances apply.
Frequently asked questions
What does the Tarion warranty cover for new homes in Ontario?
The Tarion warranty provides mandatory protection for new home buyers in Ontario, including deposit protection and coverage for construction defects. It typically includes one-year coverage for workmanship, two years for water penetration and heating systems, and seven years for major structural defects. Registrants for UpTown Woodbridge can review these statutory protections before the September launch.
Is deposit protection included in the Ontario new home warranty?
Yes, deposit protection is a core component of the Tarion warranty program for new homes in Ontario. If a builder is unable to complete the project, a portion of your deposit is protected up to specific limits based on the home price. At UpTown Woodbridge, homes start from the $700s, falling under these provincial regulations.
What is a Pre-Delivery Inspection for an Ontario home?
The Pre-Delivery Inspection, or PDI, is a mandatory walkthrough where the buyer and builder document any missing or damaged items before closing. This is your primary opportunity to identify issues that the builder must rectify under the Tarion warranty. It is a critical milestone for all new Fieldgate Homes communities across the GTA.
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