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Tarion’s One, Two and Seven-Year Coverage Explained: What Each Year Covers and the Forms That Keep It
Warranty Tarion From a builder
Tarion's One, Two and Seven-Year Coverage Explained
Tarion is the warranty every new home from a licensed builder in Ontario comes with, and almost nobody reads it until something leaks. Here is what each year covers, in a builder’s words, and the two forms that most people file late.
Short version: Year one: defects in work and materials, Code violations, and the home being fit to live in. Year two: water penetration through the basement and envelope, defects in electrical, plumbing and heating delivery systems, exterior cladding, and Code violations affecting health and safety. Years three to seven: major structural defects only. Plus deposit protection and delayed closing compensation on purchased homes. Coverage depends on filing the 30-day, year-end and second-year forms on time; the pre-delivery inspection is where it starts. Owner-built homes and renovations are not covered.
Who has it and who does not
Tarion coverage comes with a new home built by a builder licensed by the HCRA, enrolled before construction starts, whether you bought it from the builder or had it built on your own lot under contract. It does not come with an owner-built home, a renovation, an addition, or a house built by an unlicensed builder. How to check an HCRA licence is the two-minute step that tells you which you are getting, and what Tarion covers is the overview this page expands.
Year by year
| Period | What is covered | Examples |
|---|---|---|
| Pre-possession | Deposit protection and delayed closing or occupancy compensation on homes purchased from a builder | Freehold deposits protected up to the current cap; a fixed amount per day for late closing up to a cap |
| Year one | Defects in work and materials; Ontario Building Code violations; the home is fit for habitation | Doors that do not latch, cracked tile, nail pops beyond the guidelines, a missing handrail |
| Year two | Water penetration through the basement or foundation walls and the building envelope; defects in the electrical, plumbing and heating delivery and distribution systems; defects in exterior cladding; Code violations affecting health and safety | A leaking window, a wet basement wall, a furnace duct that was never connected, siding that falls off |
| Years three to seven | Major structural defects: failure of load-bearing parts, or defects that materially affect the use of a major part of the house | A foundation that moves, a beam that fails, a roof structure that sags |
Tarion’s construction performance guidelines set the standard for what counts as a defect item by item; a drywall crack under the guideline width is not a warranty item, a door that will not close is. Cosmetic vs serious defects sorts the usual list.
The forms and the deadlines
- Pre-delivery inspection (PDI). Before possession, with the builder, recording every deficiency on the form. Items on the PDI form are documented; items missed may be argued over later. The final walkthrough checklist is how to do it.
- 30-day form. Within the first 30 days of possession, anything you have found since the PDI. Missing the window does not void the warranty, but it delays Tarion’s involvement and some items become harder to claim.
- Year-end form. In the last 30 days of the first year. This is the big one: everything that showed up as the house dried and settled, including the drywall cracks and the doors that moved.
- Second-year form. In the last 30 days of year two for the year-two items (water, systems, cladding).
- Major structural defect form. Any time within the seven years, as soon as you see it.
File through the Tarion portal, with photos, in plain language, one item per line. The builder gets a repair period; if the repair does not happen, Tarion conciliates and, if it finds the item warranted and unrepaired, pays for it and pursues the builder. Late forms are the commonest way coverage is lost, and it is entirely avoidable: put the dates in your calendar the day you get the keys.
What is never covered
- Normal wear and shrinkage within the guidelines (hairline cracks, nail pops, minor settling)
- Damage from the owner: neglect, alterations, improper maintenance, failing to run the HRV
- Secondary damage: a leak is covered, the ruined rug usually is not
- Grading settlement after the first year, landscaping, driveways in most cases
- Appliances and anything with its own manufacturer warranty
- Anything caused by acts of nature or municipal services
- Owner-built homes, renovations and additions, and houses by unlicensed builders
The builder's own warranty
Tarion is the floor, not the ceiling. A builder who stands behind the work carries their own warranty on top of it; ours is seven years on materials and workmanship, which is longer than Tarion asks and covers things Tarion does not. Ask any builder what their own warranty is, in writing, and what happened the last time somebody used it. Deficiencies and warranty explains how the two work together.
Related guides on this site
Sources and further reading
Questions people ask
What does Tarion cover in the first year?
Defects in work and materials, Ontario Building Code violations, and the home being fit for habitation. The construction performance guidelines define which items qualify.
What does the two-year Tarion warranty cover?
Water penetration through the basement, foundation and building envelope; defects in electrical, plumbing and heating delivery and distribution systems; exterior cladding defects; and Code violations that affect health and safety.
What is a major structural defect under Tarion?
A defect in a load-bearing part of the house, or one that materially affects the use of a major part of it, covered for seven years from possession. A foundation that moves or a beam that fails are the usual examples.
What happens if I miss the Tarion year-end form?
Coverage is not void, but the year-one items you did not report in time can be lost, and Tarion's process for the rest is slower. File the 30-day and year-end forms on the calendar the day you take possession.
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Reviewed and updated October 2026. Costs are Ontario ranges, not quotes; code references are to the Ontario Building Code in force at that date.
