Quick answer: Every new home in Ontario comes with a Tarion warranty, backed by law. It has three parts:
- 1 year: workmanship, materials and Building Code.
- 2 years: water leaks, electrical, plumbing and heating, and health and safety issues.
- 7 years: major structural defects.
Coverage starts on your possession date. You protect it by reporting defects on Tarion's forms before each deadline.
Buying pre-construction means buying something that doesn't exist yet. The Tarion warranty is what stands behind it once you get the keys. Most buyers know the name. Few know what it actually covers, or that missing a form deadline can cost them coverage.
This guide explains the 1-, 2- and 7-year warranty, the claim forms and their deadlines, what is not covered, and how Tarion also protects your deposit and pays you if your closing is delayed. All figures are from Tarion and are current as of October 2026.
What is the Tarion warranty?
Tarion is the not-for-profit organization that runs Ontario's new home warranty program under the New Home Construction Licensing Act and the Ontario New Home Warranties Plan Act. Every builder must enrol each new home with Tarion. You don't buy the warranty. It comes with the home, and the cost is built into the price.
The warranty covers freehold homes, condo units, condo common elements and contract homes. Your builder is responsible for doing the repairs. Tarion steps in if the builder doesn't.
A separate body, the Home Construction Regulatory Authority (HCRA), licenses builders. You can check a builder's licence and history in the HCRA's Ontario Builder Directory before you sign.
When does Tarion coverage start?
Coverage starts on your date of possession:
- Freehold home: your closing date.
- Condo unit: your interim occupancy date, not the final closing date. This matters. Your warranty clock is already running while you pay occupancy fees.
What does the 1-, 2- and 7-year warranty cover?
| Coverage | How long | What it covers |
|---|---|---|
| One-year warranty | Year 1 from possession | The home is free from defects in work and materials, is fit to live in, and meets the Ontario Building Code. Also covers unauthorized substitution of items listed in your Agreement of Purchase and Sale (APS) or that you chose. |
| Two-year warranty | Years 1 and 2 | Water getting in through the basement or foundation walls, windows and building envelope. Defects in electrical, plumbing and heating delivery and distribution systems. Defects that make exterior cladding (brick, siding) detach, shift or deteriorate. Building Code violations that affect health and safety. |
| Seven-year warranty | Years 1 to 7 | Major structural defects: a defect that causes a load-bearing part of the home to fail, materially weakens its structure, or materially affects your use of a significant part of the home. |
A simple way to remember it: year 1 is "finish and fit", year 2 is "water and systems", and year 7 is "structure".
What is not covered by Tarion?
Tarion lists these exclusions:
- Normal wear and tear.
- Damage from poor maintenance, or caused by you or a third party.
- Secondary damage caused by a warranted defect (for example, your damaged furniture). Your home insurance may cover this.
- Elevators and HVAC appliances (these usually have manufacturer warranties).
- Supplementary warranties, such as appliance or roofing warranties from the builder or a supplier.
- Specific defects you accepted in writing.
- Damage from an Act of God, such as a flood or storm.
Tip: write down anything you see at your pre-delivery inspection (PDI). Don't sign anything that says you accept a defect unless you mean it.
How much will Tarion pay?
Limits depend on when the first APS for the home was signed. For agreements signed on or after July 1, 2023:
| Type of coverage | Maximum |
|---|---|
| Freehold home warranty | $400,000 |
| Condo unit warranty | $300,000 |
| Condo common elements | $100,000 × number of units, up to $3.5 million |
| Whole condo project (units + common elements) | $50 million |
| Environmentally harmful substances or hazards | $50,000 |
| Delayed closing or occupancy compensation | Up to $7,500 |
Condo common elements (lobby, roof, garage, amenities) are claimed by the condo corporation, not by individual owners.
How do I make a Tarion warranty claim?
Since May 1, 2024, the forms are filed through Tarion's online MyHome portal. Register on MyHome right after you take possession. It tracks your dates and reminds you before each form is due.
Always report the problem to your builder first and give them access to fix it. If they don't, you file a form. Here is the timeline, counted from your possession date:
| Form | Add items from | Submitted | Notes |
|---|---|---|---|
| Initial Form | Day 1 | Automatically on day 41 | For problems you find in the first weeks, including PDI items the builder didn't fix. |
| Mid-Year Form | Day 42 | Automatically on day 183 | You can add items you missed on the Initial Form. |
| Year-End Form | Day 183 | Automatically on day 365 | Only one is accepted. A 10-day grace period exists, but you must file manually and prove you told the builder during year 1. |
| Second-Year Form | Anytime in year 2 | When you submit it | For 2-year items. You can file as many as you need. |
| Major Structural Defect Form | After year 2 | No later than 7 years from possession | More than one can be filed. |
The Year-End Form is the big one. It is your last chance to claim 1-year items like drywall cracks, nail pops, uneven floors and poor finishes.
What happens after I submit a form?
- Builder repair period: Submitting a form starts a 120-day period for the builder to fix the items. Exterior work and emergencies can have different timeframes. This period doesn't apply to major structural defects.
- Conciliation: If items aren't fixed, you can ask Tarion to inspect. The fee is $282.50 ($250 + HST). It is refunded if Tarion finds at least one item is covered.
- Conciliation window: Generally, you can request it any time after a form is submitted until the next form's submission date. For the Year-End Form, you have up to 150 days after it is submitted. For Second-Year and Major Structural Defect forms, you must request it within 30 days after the builder's repair period ends.
- Tarion's decision: Tarion issues a Conciliation Assessment Report. The builder then has a final 30 days to fix covered items. If they don't, Tarion resolves the claim, which can mean paying you to do the repair.
- If you disagree: You can request a decision letter, ask for mediation, or appeal to the Licence Appeal Tribunal.
Does Tarion protect my deposit too?
Yes. If the builder goes bankrupt or fundamentally breaches the contract, Tarion covers your deposit up to these limits:
- Freehold: up to $60,000 if the price is $600,000 or less. Above $600,000, 10% of the price, to a maximum of $100,000.
- Condo: up to $20,000. Condo deposits must also be held in trust under the Condominium Act.
New for freehold buyers: since April 1, 2026, you must register your purchase with Tarion within 45 days of signing the APS. If you register late, your deposit claim falls into a shared annual pool that can be reduced. This rule does not apply to condos. Read more in our guide to pre-construction deposits.
What if my closing is delayed?
Tarion's delayed closing and delayed occupancy warranty can pay up to $7,500, including $150 per day for living expenses. You can also get $1,500 if the builder gives you less than 10 days' notice of a delay. The rules and dates come from the Tarion Addendum in your APS, so read the critical dates page before you sign.
Tarion warranty checklist for new home buyers
- ☐ Check the builder in the HCRA Ontario Builder Directory before you sign.
- ☐ Freehold: register your purchase with Tarion within 45 days of signing.
- ☐ Read the Tarion Addendum and note your critical dates.
- ☐ Do a careful PDI and list every issue on the form.
- ☐ Register on MyHome right after possession.
- ☐ Report each problem to the builder in writing, with photos.
- ☐ Add items to the Initial, Mid-Year and Year-End Forms before they auto-submit.
- ☐ Book a home inspection before day 365 to catch 1-year items.
- ☐ Watch for leaks and system problems in year 2 and file a Second-Year Form.
- ☐ Keep every email, photo and work order in one folder.
Related reading: PDI Checklist: How to Do Your Pre-Delivery Inspection · Pre-Construction Occupancy and Closing FAQ · The Ultimate Guide to Investing in Pre-Construction in Ontario
Frequently asked questions
Is the Tarion warranty transferable if I sell?
Yes. The warranty stays with the home, not the owner. If you sell or assign, the new owner gets the time left on each part of the warranty.
Do I have to pay for the Tarion warranty?
No separate payment is needed. The builder pays Tarion's enrolment fee for each home, and that cost is usually passed on in the price or as a closing adjustment. Check your APS.
Does Tarion cover condo amenities and the roof?
Yes, as common elements. The condo corporation files those claims, not individual owners. Coverage is $100,000 per unit, up to $3.5 million per project.
What if I miss the Year-End Form?
There is a 10-day grace period. You must submit the form manually and show written proof that you told your builder about the items during the first year. After that, 1-year items are no longer covered.
Can I use my own contractor and bill Tarion?
Not at first. The builder must get the chance to repair within its repair period. If you fix an item yourself before then, Tarion may not reimburse you. In a true emergency, such as no heat or a major leak, contact the builder and Tarion right away.
Is my assignment purchase covered by Tarion?
Yes. When you buy an assignment, you step into the original buyer's APS and the warranty applies to the home from the possession date.
About the author: Ola Otubu is a REALTOR® with Realty ONE Group Reveal, Real Estate Brokerage, and the founder of Buyprecon.ca. He represents buyers of new construction homes and condos across Ontario, from the first deposit through PDI, closing and warranty claims.
This article is general information, not legal advice. Tarion rules, limits and forms change. Confirm details with Tarion and your real estate lawyer before you act. Last updated October 26, 2026.
Sources: Tarion: Warranty Information for Freehold Homes (effective May 1, 2024); Tarion: Types of coverage after you've taken possession; Tarion: About Claim Forms & Timelines; Tarion: Regular claims process; Tarion: Conciliation process; Bennett Jones: New Tarion Rule, purchasers must register within 45 days (April 2026); HCRA Ontario Builder Directory.
Want help protecting your new home warranty?
Ola reviews your Tarion Addendum before you sign, walks your PDI with you, and helps you stay on top of every warranty deadline. There's no cost to you as a buyer.