What is the Tarion Home Warranty and How Does It Affect my New Home?

What is the Tarion Home Warranty program and what does it cover? Here’s a quick overview for prospective buyers of new builds in Ontario.

Buying a new home is a life changing experience for you and your family. This is especially true if you are fortunate enough to build the home of your dreams.

While it is a time of great excitement, it is also stressful and can fill you with questions. What if there is something wrong with the construction of your new home? Is your family’s future in good hands? Here in Ontario, you and your new home can find protection from the Ontario New Home Warranty Program, backstopped by Tarion through the Government of Ontario since 1976, with one-year, two-year, or seven-year coverage plans. But what is the Tarion Home Warranty Program and is it right for you and your family?

What Is the Tarion Home Warranty?

Every year 50,000 new homes are enrolled in the warranty program which already provides protection for over 365,000 dwellings. The protection lasts for up to seven years and is financed by builder registration fees as well as renewal and home enrolment fees. As the supervisor of the program, Tarion:

  • Registers new home builders and vendors
  • Enrols new homes for warranty coverage
  • Investigates illegal building practices
  • Resolves warranty disputes between builders and homeowners
  • Promotes high standards among Ontario’s home builders
  • Educates new home buyers of their legal rights and protections

The Plans

The Tarion home warranty program offers three different coverage plans depending upon your specific needs as a home buyer and owner.

  1. One Year Warranty – This plan lasts for one year from the purchase date, even if you sell the home within this year and protects against Ontario building code violations, ensuring the home is fit for habitation and free of defect materials as well as against unauthorized substitutions.
  2. Two Year Warranty – Protects your home for two years from the date it comes into your possession from Ontario building code violations that affect health and safety while providing coverage for defects in materials used for electrical, plumbing and heating systems as well as against materials that can become displaced or detached such as brickwork, aluminum or vinyl siding. It helps shield you from the damages caused by water penetration in your foundation or basement as well as through doors and windows.
  3. Seven Year Warranty – The longest and most comprehensive of the plans, the seven year warranty covers your home for seven years from the date you take possession of the property from all major structural damage. This warranty includes significant damage due to soil movement, major cracks in basement walls, collapse or serious distortion of joints or roof structure and chemical failure of materials.

Moving Forward

As of January 2020, Tarion has announced new measures that will help inform and educate new home buyers. These measures include adding new search tools on Tarion’s Ontario Builder Directory and a new information sheet that highlights potential risks attached to purchasing certain types of pre-construction condominiums.

If You’re Ready to Move Forward, We’re Here for You!

If you’re in the market for a new home and new construction and need help understanding the Tarion Home Warranty Program, call us for an experienced real estate lawyer who can help you with all aspects of the home buying process.