Journal

When you’re investing in a new home or custom cottage, peace of mind is just as important as craftsmanship or location. The building process involves dozens of moving parts—and no matter how experienced your builder is, unexpected issues can happen. That’s why Ontario homeowners rely on the Tarion Warranty to help protect their investment, enforce accountability, and ensure builders meet their obligations.

Before you begin your project, it’s essential to understand how this warranty supports you at every stage of the homebuilding process.

Key Takeaways

The Tarion Warranty provides mandatory protection for new homes and contract-built custom cottages in Ontario.

It includes 1-, 2-, and 7-year coverage for defects, major systems, and structural integrity.

Buyers are protected before and after possession, including deposit protection and delayed closing compensation.

Only Tarion-registered builders can offer this warranty—always verify your builder’s registration.

Homeowners must follow specific timelines to file claims and request repairs through Tarion.

1. What Is the Tarion Warranty and Why It Matters for Ontario Homeowners

The Tarion Warranty is a mandatory new home warranty program in Ontario, established under provincial law to protect homeowners when purchasing or building a newly constructed home. It requires builders to meet specific quality standards and provides structured coverage for construction defects, major systems failures, and structural issues over defined time periods.

For homeowners, this warranty acts as a safety net—helping to resolve problems that may arise during or after construction, and ensuring the builder is accountable for their work. Whether you're buying a freehold home, a condominium, or building a custom cottage, the Tarion Warranty offers peace of mind and legal protection throughout the entire process.

2. Who Qualifies for the Tarion Warranty in Ontario

The Tarion Warranty applies to most newly built homes in Ontario, including homes sold by a builder and custom homes built under a contract on land you already own. To qualify, the home must be constructed by a Tarion-registered builder and meet the standards set out in Ontario’s New Home Warranties Plan Act.

Eligible for Tarion Warranty:

• Buyers of new freehold homes or condominiums
• Homeowners building a custom home through a registered builder
• Owners of contract homes (a home built on land they already own)
• Seasonal homes that meet building code standards for occupancy

Not Covered by Tarion Warranty:

• Homes built by unregistered builders (including DIY builds)
• Renovations, additions, or conversions not classified as “new homes”
• Outbuildings such as sheds, garages, or bunkies
• Homes not intended for occupancy or that don’t meet code

Before signing a contract, buyers should always confirm that their builder is registered with Tarion. Without registration, the home will not be eligible for coverage—even if it’s newly built.

3. Types of Homes Covered by the Tarion Warranty

The Tarion Warranty applies to a wide range of new residential builds in Ontario, provided they are constructed by a registered builder and meet occupancy and building code requirements. This includes standard homes, condos, and even custom cottages built under contract.

Freehold Homes
Detached, semi-detached, and townhomes that are sold by a builder or constructed on land you own under a contract are covered. This is the most common category under Tarion.

Condominiums
Both individual condo units and shared elements (like roofs, hallways, and mechanical systems) are covered. Unit owners benefit from individual coverage, while the condo corporation receives warranty protection for common areas.

Contract/Custom Homes
If you hire a registered builder to construct a new home on land you already own, the home qualifies as a contract home. These builds are fully covered under Tarion, including deposit protection and structural warranties.

Custom Cottages and Seasonal Homes
Custom cottages are covered as long as they meet the Ontario Building Code for occupancy and are built by a Tarion-registered builder. Seasonal cottages with full plumbing, heating, and structural systems typically qualify, while unfinished or non-dwelling structures do not.

4. Tarion Warranty Coverage: What’s Included Before and After You Move In

The Tarion Warranty offers coverage across multiple stages of the homebuying and building process—from the moment a purchase agreement is signed, through to several years after move-in. Coverage is broken into specific timelines, each addressing different risks and responsibilities.

a. Pre-Possession Protections Under the Tarion Warranty

• Deposit Protection: If your builder goes bankrupt or doesn’t complete the project, Tarion offers compensation for your deposit—up to a defined limit, depending on the type of home and agreement.
• Delayed Closing/Occupancy Compensation: If your builder doesn’t meet the occupancy or closing date outlined in the purchase agreement and fails to give proper notice, you may be entitled to compensation (up to $7,500 for qualifying delays).

b. 1-Year Coverage in the Tarion Warranty

• Defects in workmanship and materials
• Unauthorized substitutions in finishes or fixtures
• Failure to meet the Ontario Building Code
• The home being unfit for habitation

c. 2-Year Coverage in the Tarion Warranty

• Defects in plumbing, electrical, and heating systems
• Water penetration through exterior walls, windows, or foundation
• Major violations of the Ontario Building Code affecting health and safety

d. 7-Year Major Structural Defect Coverage in the Tarion Warranty

• Foundation failure
• Major structural load-bearing issues
• Defects that significantly affect the home’s use for residential purposes

e. Tarion Warranty Coverage Limits and Caps

Warranty coverage is subject to maximum claim amounts. For freehold homes with a purchase agreement signed on or after July 1, 2023, coverage is capped at $400,000. Condo units have different limits for individual units and common elements.

Always check your Agreement of Purchase and Sale (APS) date and home type to confirm the specific coverage limits that apply.

5. What’s Not Covered by the Tarion Warranty

While the Tarion Warranty provides broad protection for new homebuyers, it doesn’t cover everything. Understanding the exclusions helps set clear expectations and prevents confusion if issues arise that fall outside the warranty’s scope.

Common Exclusions

• Normal wear and tear such as nail pops, minor cracks, or drywall settling
• Weather-related damage after possession unless due to a building defect
• Damage caused by homeowner neglect or misuse

Maintenance and Homeowner Responsibilities

Tarion does not cover defects caused by failure to maintain the home. Homeowners are expected to follow seasonal maintenance guidelines (e.g., cleaning eavestroughs, sealing joints, managing humidity levels).

Outbuildings and Non-Dwelling Structures

• Detached garages, sheds, boathouses, and bunkies are not covered unless specifically included as part of the new home contract
• Landscaping, driveways, fencing, and walkways are also excluded

Items Supplied by the Owner

If the homeowner supplies their own materials, appliances, or finishes (e.g., a custom vanity or imported lighting), those items are not covered under the Tarion Warranty.

6. How to Make a Claim Under the Tarion Warranty

To take full advantage of the Tarion Warranty, homeowners must follow a specific process and timeline when reporting issues. Failing to meet deadlines or missing required steps can limit or void coverage, so it’s essential to stay organized from day one.

Required Inspections

Before you move in, your builder will conduct a Pre-Delivery Inspection (PDI). This walkthrough documents any damage, deficiencies, or incomplete work, and forms the baseline for future claims.

Filing Tarion Warranty Forms

Tarion uses time-based forms for homeowners to report problems:

• 30-Day Form: Submitted within the first 30 days of possession to report any early issues
• Year-End Form: Submitted during the last 30 days of the first year for unresolved or new issues
• Second-Year Form: For 2-year warranty coverage items like water penetration or mechanical systems
• Major Structural Defect Form: Submitted any time within the 7-year coverage window for structural concerns

All forms must be submitted through Tarion’s online portal, along with supporting documentation like photos or inspection reports.

Builder Repair Period

Once a claim is submitted, the builder has a defined period (usually 120 days) to complete repairs. If they don’t resolve the issue, homeowners can escalate it to Tarion for investigation and enforcement.

Dispute Resolution and Escalation

If you disagree with the builder’s response—or no action is taken—Tarion may conduct its own inspection and offer a ruling. In some cases, compensation or repairs may be ordered directly by Tarion.

7. Tarion Warranty for Custom Cottages and Contract Homes

Custom cottages and contract homes are fully eligible for Tarion Warranty coverage—as long as they’re built by a registered builder and meet occupancy requirements under the Ontario Building Code. For many cottage owners, this warranty offers essential protection during and after construction.

Contract Homes on Land You Own

If you hire a builder to construct a home or cottage on land you already own, it qualifies as a contract home under Tarion. These builds receive the same warranty coverage as any other new home, including:

• Deposit protection (up to $60,000)
• Full 1-, 2-, and 7-year coverage
• Pre-delivery inspection and possession-based timelines

Foundation and Building Code Requirements

To be eligible, the structure must meet Ontario Building Code standards. This includes proper foundation work, heating and electrical systems, and other essentials for occupancy—even in seasonal builds.

Seasonal or Recreational Use

Custom cottages used seasonally are still covered, provided they’re intended for residential use and meet Tarion's structural and safety requirements. However, accessory buildings like bunkies or boathouses are not covered unless specifically included in the construction contract as part of the dwelling.

8. What to Ask Your Builder About the Tarion Warranty

Before signing any construction agreement, it’s essential to confirm that your builder is properly registered with Tarion and committed to following all warranty obligations. Asking the right questions up front can save you time, money, and stress down the line.

Confirm Tarion Registration

• Are you a Tarion-registered builder in good standing?
• Can I verify your registration number on the Tarion website?

Understand Your Coverage

• Will this home be fully covered under the Tarion Warranty?
• What happens if issues arise after closing or occupancy?
• How do you handle Pre-Delivery Inspections and warranty forms?

Review the Warranty Documents

• Will I receive a Certificate of Completion and Possession?
• Can you walk me through the coverage periods and claim process?
• What exclusions should I be aware of?

Ask About Builder Responsibilities

• How long do you take to address warranty claims?
• Do you submit all the required documents to Tarion on my behalf?
• What’s your track record with past Tarion claims?

Having these answers in writing, or as part of your contract, ensures transparency and builds trust between you and your builder—especially for custom or high-value projects.

9. How Tech Home Supports You with the Tarion Warranty

Tech Home takes a proactive, full-service approach to the Tarion Warranty, ensuring that every client receives both protection and peace of mind throughout the homebuilding process. As a registered Tarion builder in good standing, Tech Home follows all regulatory requirements and integrates warranty compliance into every stage of the build.

Registered Tarion Builder

Tech Home is fully registered with Tarion and remains in good standing—ensuring that every new home or custom cottage built under contract is eligible for full warranty coverage.

Full-Service Support from Design to Possession

Clients work directly with Fred Haas during the design phase, and Tech Home manages all drafting, permit applications, and site plans with Tarion compliance in mind. From early planning to the final inspection, warranty requirements are built into the process.

Builder’s Risk Insurance During Construction

To complement the Tarion Warranty, Tech Home provides clients with complimentary builder’s risk insurance—covering liability and damage during construction. This adds another layer of protection, independent of the warranty coverage.

Organized Inspections and Claim Support

Tech Home ensures a thorough Pre-Delivery Inspection (PDI) is conducted before possession. If any warranty issues arise, they guide clients through the proper reporting process and handle repairs within the required timelines.

By integrating warranty protection into its construction and project management process, Tech Home helps clients avoid delays, resolve concerns quickly, and stay fully protected under the Tarion program.

Final Thoughts

The Tarion Warranty is more than a regulatory requirement—it’s a vital safeguard that protects Ontario homeowners throughout the construction and ownership of a new home or custom cottage. From financial protections before possession to structural coverage years after move-in, it provides a clear, enforceable framework for quality and accountability.

For buyers, it means knowing that if something goes wrong, there’s a system in place to make it right. For builders, it reinforces high standards and trust. When you choose a registered builder like Tech Home, you're not just investing in expert craftsmanship—you’re securing lasting peace of mind backed by one of the most comprehensive home warranty programs in Canada.