Tarion is the independent non-profit organization that administers Ontario's mandatory new home warranty program. Every newly built home in the province, whether freehold or condominium, must be enrolled with Tarion before it can be sold, and the warranty protects against construction defects for up to seven years after you take possession. You do not buy this coverage and you cannot waive it. It comes with the home, and it survives a change of ownership.
Coverage is structured in three periods, and all of them start on the date you take possession. Not the date the building finishes, and not the date you signed.
The one-year warranty is the broadest. It covers defects in workmanship and materials, unauthorized substitutions of finishes specified in your purchase agreement, and violations of the Ontario Building Code that affect health and safety. If the builder promised oak and installed laminate, this is the year that gets fixed.
The two-year warranty narrows. It covers water penetration through the basement, foundation, or building envelope, along with defects in the electrical, plumbing, and heating delivery and distribution systems. Water is the headline here, because envelope leaks are among the most expensive problems a newer home can develop.
The seven-year warranty applies exclusively to major structural defects, meaning problems that materially compromise the load-bearing capacity or structural integrity of the home. This is the narrow, serious end of the program. Cracked drywall does not qualify. A failing foundation does.
A common misunderstanding worth clearing up: Tarion does not perform repairs. Your builder is responsible for resolving warranty issues directly with you. Tarion is the referee, not the contractor.
If the builder fails to address a valid claim or disputes that something is covered, you can escalate the matter to Tarion for conciliation. When a builder still does not comply after conciliation, Tarion may step in to arrange repairs or compensate you. The system works, but it rewards homeowners who follow the process precisely and punishes the ones who rely on phone calls and goodwill.
Document everything from day one. The pre-delivery inspection, which is the walkthrough you do with the builder before possession, becomes the baseline record of the home's condition. Treat it seriously and write down every deficiency rather than accepting a verbal promise that someone will get to it.
After possession, claims go to Tarion in writing through defined forms tied to each warranty period, and the submission windows are not suggestions. Miss one and you can lose coverage for items that would otherwise have been fixed at no cost to you, which is a brutal way to learn that the warranty is a process rather than a promise. Put the deadlines in your calendar the day you get keys. At Advantage Group Real Estate, new-build clients get walked through those windows before possession, because the timing of the paperwork genuinely decides outcomes.
The program also protects your money before possession. For new freehold homes priced over $600,000, deposit coverage can reach up to $100,000. For new condominium units, deposits must be held in trust under the Condominium Act, and Tarion provides a secondary layer of protection up to $20,000 if those trust provisions fail.
There is a date worth flagging here. As of April 1, 2026, buyers of new freehold homes are expected to register their purchase with Tarion within 45 days of signing the agreement of purchase and sale to qualify for maximum deposit coverage. That registration step is new behaviour for buyers, easy to miss, and missing it has real consequences for how much of your deposit is protected.
Builder licensing is handled separately by the Home Construction Regulatory Authority, known as the HCRA, which maintains the Ontario Builder Directory. Before signing any agreement for a new-build home, look the builder up. The directory shows whether they are licensed and in good standing, and checking takes five minutes.
Remember that the warranty coverage stays with the home for its full duration rather than with the first owner. So if you buy a resale home that is under seven years old, you inherit whatever protection remains, which is a genuinely underrated feature of buying lightly used instead of brand new. And if you are purchasing a pre-construction condominium, the warranty is only one piece of the carrying-cost picture, so it helps to also understand what interim occupancy fees are and how they work in Ontario.
New-build purchases reward people who treat the paperwork as seriously as the finishes. Jeremy Van Caulart and the team at Advantage Group Real Estate, brokered by Royal LePage Signature Realty, work with new-construction buyers across Toronto, and the consistent lesson after years of these deals is simple. The warranty pays out for the people who knew their deadlines.
No. The builder is responsible for resolving warranty issues directly with the homeowner. Tarion steps in for conciliation when a builder disputes or ignores a valid claim, and only after that may it arrange repairs or compensate the homeowner.
Yes. The warranty stays with the home for its full duration, so a resale buyer of a home under seven years old inherits any remaining coverage. The clock still runs from the original possession date, not from your purchase.
Tarion administers Ontario's new home warranty program and handles claims after possession. The Home Construction Regulatory Authority licenses and regulates builders and maintains the Ontario Builder Directory. Check the directory before you sign, and lean on Tarion if defects appear later.
Related reading: Where Is Your Deposit Held and How Is It Protected in Ontario Real Estate?, What Are Interim Occupancy Fees When Buying a Pre-Construction Condo in Ontario?, and How Does the 2026 Ontario HST Rebate Work for New Home Buyers?.