Section 03
The Tarion new home warranty, explained
Last reviewed October 30, 2026
New homes sold by Ontario builders, freehold or condo, come with a statutory warranty. Tarion, a not-for-profit corporation, administers the province's new home warranty program, while a separate regulator, the Home Construction Regulatory Authority (HCRA), licenses builders. It's valuable, but it isn't automatic. The forms have deadlines, and coverage has limits. Here's how to get the most out of it.
Coverage at a glance
- 1 year: workmanship and materials, Ontario Building Code violations, the home being fit to live in, and that it's built as per the contract.
- 2 years: water getting in through the basement, windows, doors and caulking; defects in electrical, plumbing and heating delivery systems; exterior cladding; and Building Code violations affecting health and safety.
- 7 years: major structural defects.
The exact wording, exclusions and limits are set out in Ontario's Ontario New Home Warranties Plan Act and Tarion's materials. Read the "Homeowner Information Package" your builder gives you, and Tarion's website, for the official version.
Common questions
What does "workmanship and materials" cover?
Things like drywall cracks, nail pops, poorly fitted trim, sticking doors, cracked tiles, and fixtures that weren't installed properly. Small items, but they add up, and the first year is when you should catch them.
Is my new condo covered?
Yes. Your unit has the 1-, 2- and 7-year coverage. The building's common elements have their own coverage, which the condo corporation's board is responsible for pursuing. If you're on the board of a new condo, this is one of your most important early jobs.
What isn't covered?
Normal wear and tear, damage you cause, damage from lack of maintenance, and things like secondary cracks in concrete that are within allowable tolerances. Some items, like landscaping, fencing and driveway paving, are covered in limited ways or not at all. Tarion's website lists the exclusions.
Does the warranty transfer if I sell?
Yes. The warranty stays with the home for the remainder of its term, which is why a nearly-new resale home in one of London's newer subdivisions can still have coverage remaining.
The forms and deadlines
This is where people lose coverage. Under the warranty process, you report defects to your builder (and Tarion) using specific forms submitted in specific windows:
| Form | When to submit | What it's for |
|---|---|---|
| 30-Day Form | Within the first 30 days after you take possession | Items you notice when you first move in |
| Year-End Form | In the last 30 days of the first year | Anything else under the 1-year (and 2-year) coverage |
| Second-Year Form | In the last 30 days of the second year | Items under the 2-year coverage |
| Major Structural Defect claim | Within the 7-year period (in the window set out by Tarion) | Major structural problems |
Submit forms through Tarion's online homeowner portal. After you submit, the builder gets a set period to repair. If items aren't resolved, you can request a conciliation inspection by Tarion within the timelines. Check Tarion's site for the current process and deadlines.
Practical tip: the day you get your keys, put the Year-End and Second-Year submission windows in your calendar with two reminders each. Keep a running note on your phone of anything you notice, with photos and dates.
Emergencies
Some problems, like no heat in winter, a major water leak, or a total loss of electricity or plumbing, are warranty "emergencies". Contact your builder first using their emergency number. If they don't respond, Tarion has an emergency process. Find both numbers before you need them.
Delayed closing compensation
Builders must give proper notice of delays according to the Addendum attached to your agreement. If they don't, or if delays go past certain points, you may be entitled to compensation for delayed closing or occupancy, up to a maximum set by Tarion. The Addendum is the controlling document, so read it with your lawyer.
Who does what: Tarion and the HCRA
Since 2021, the Home Construction Regulatory Authority (HCRA) licenses and regulates new-home builders and vendors, handling licensing, conduct and complaints about builders. Tarion continues to run the warranty and deposit protection program: enrolling homes, handling warranty claims and dispute resolution. Tarion advises buyers to confirm both that the builder is HCRA-licensed and that the home is enrolled with Tarion before signing. The HCRA's Ontario Builder Directory shows a builder's licence status, past conduct and warranty history, including the number of homes enrolled and claims paid. It's free to look up, and well worth a few minutes before you sign.
Making the warranty work for you
- Do a thorough PDI. Document everything at the pre-delivery inspection. See PDI & inspections.
- Consider a private inspection before your year-end deadline. An independent inspector often catches things owners miss.
- Be specific and use photos. "Crack in drywall above kitchen window, approx. 30 cm, photo attached" gets fixed faster than "wall cracks".
- Keep everything: the agreement, the Addendum, the PDI form, emails with the builder, and all form submissions.
- Maintain the home. Damage from lack of maintenance isn't covered, so follow the builder's maintenance guide, especially for grading, caulking and humidity in the first year.
Your local agent
Bring someone on your side to the sales centre
The people at a builder's sales centre work for the builder. A buyer's agent works for you. They can compare the builder's pricing with resale homes nearby, flag clauses for your lawyer, and help you decide which upgrades are worth it.
We recommend Rayna Elabed, a Sales Representative with CENTURY 21 First Canadian Corp., Brokerage, in London. She can help you weigh new construction against resale listings across the city. Many builders expect your agent to be with you, or registered, on your first visit, so contact her before you go.
Contact Rayna & browse listings