By law, all new homes built in Ontario are provided with a warranty by the builder. Tarion’s role is to ensure that buyers of newly built homes in Ontario receive the coverage they are entitled to under their builder’s warranty. This is governed by the Ontario New Home Warranties Plan Act.

Coverage includes financial protection before you take possession/occupancy and protection against construction defects after you take possession.

A new home built by an HCRA licensed builder/vendor is eligible if it meets four criteria under the ONHWP Act (there must be a “home”, “vendor”, “builder”, and “owner” each of these are defined on the HCRA Website).

The coverage begins when you sign the Agreement of Purchase & Sale, and remains in effect for up to 7 years even if the home is sold. Each warranty comes with certain limits and obligations on you as a home buyer and owner, as well as your vendor/builder.

The warranty is provided by the builder and backstopped by Tarion. As the warranty provider, the builder is responsible for resolving warranty issues directly with a homeowner. In the event that a builder fails to resolve an issue or does not feel that it is covered, the homeowner can make a claim with Tarion. Tarion will assess the claim and, if under warranty, ensure that it is resolved.