Tarion Warranty: What Every Ontario Homeowner Needs to Know
The Complete Guide to Tarion Warranty: What Every Ontario Homeowner Needs to Know
“Is this covered under Tarion?” is one of the most common questions Ontario homeowners ask after they move into a new home. And it’s usually asked right after one of these moments: a window whistles in the wind, a nail pop appears out of nowhere, a basement wall gets a mysterious damp patch, or the HVAC makes a sound that definitely wasn’t in the brochure.
This guide explains how the Tarion Warranty system works in real life—what’s covered, what isn’t, the reporting timelines, and the simple habits that keep small issues from turning into expensive arguments.
What is the Tarion Warranty (in plain English)?
Let’s clear up the biggest misunderstanding first: Tarion isn’t your builder, and Tarion doesn’t “run around fixing houses.” The day-to-day repairs are still done by the builder and their trades. What Tarion does is administer Ontario’s statutory new home warranty program—meaning Tarion provides the structure for coverage, timelines, reporting, and dispute resolution steps.
If you want the official wording and scope in one spot, Tarion keeps a homeowner overview here: Tarion’s New Home Warranty overview. (We’ll stay practical in this article, but it’s useful to know where the “official truth” lives.)
Builder-style translation: Tarion is the rulebook + process + dispute pathway. Your builder is still the one who swings the hammer.
Is Tarion Warranty mandatory in Ontario?
For typical “buying a new home from a builder/vendor” situations, the statutory warranty framework is part of how Ontario protects new-home buyers. The key practical thing you want as a homeowner is simple: your home should be properly enrolled and you should have access to the reporting system used for your warranty items.
If you’re building a custom home on land you already own, the details can get more nuanced depending on the arrangement. In those cases, you want clarity early—before you’re deep into drawings and permits. And speaking of permits, homeowners often underestimate how tightly warranty issues and code compliance can overlap (especially on safety items). If you’re still early in your project, this walkthrough on How to Get a Building Permit in Ontario is a good companion read.
The 3 coverage windows: Year 1, Year 2, and Year 7
Homeowners hear “Tarion” and assume it’s one long blanket warranty. It’s not. Coverage is divided into windows, and each window has different types of issues it focuses on. The most important concept is this: your warranty start date matters, and so do the reporting deadlines attached to each period.
Year 1: workmanship, materials, basic livability, and code issues
Year 1 is the broad “new house should be built properly” coverage window. This is where a lot of the common items live: workmanship problems, material defects, certain code issues, and situations where the delivered product doesn’t match what was agreed.
Defects in workmanship and materials (think: things that simply shouldn’t be “wrong” in a brand-new home).
Items that violate Ontario Building Code requirements and should be corrected.
Promised one thing, received another without agreement (the “that’s not what we picked” category).
Year 2: water penetration + key building systems
Year 2 gets more specific. It focuses on issues that can cause real damage if ignored—especially water penetration. It also covers defects in work and materials in the home’s essential systems (like the electrical, plumbing, and heating delivery/distribution systems).
Homeowner trap: waiting until the end of a warranty period to report a water issue. Water doesn’t “pause” because you’re busy. It quietly causes damage while you’re trying to remember where you put the receipts.
Years 3–7: Major Structural Defects
The seven-year coverage window addresses Major Structural Defects (MSDs). This is the “big stuff” category—issues tied to structural load-bearing elements or conditions that materially and adversely affect the use of the home. It’s not about cosmetic issues; it’s about integrity and function.
Simple rule: If the issue is “ugly,” it’s usually Year 1 territory. If the issue is “wet,” often Year 2 gets involved. If the issue is “the structure can’t do its job,” that’s where MSD conversations begin.
The deadlines that matter most (and how homeowners accidentally miss them)
The most expensive Tarion mistake is not a construction mistake—it’s a paperwork/timing mistake. Tarion uses defined homeowner reporting points in the first year, and they’re not just “nice reminders.” They drive when items are officially submitted and when builder repair periods get triggered.
For the official timeline details, Tarion publishes them here: Tarion claim forms & timelines. Here’s the practical homeowner version:
First-year submissions (the modern system)
- Initial submission happens early in the first year (items are collected and submitted at the first milestone).
- Mid-year submission adds another checkpoint so issues aren’t “saved up” for the end.
- Year-end submission closes out the first year and sets the stage for next steps if items remain unresolved.
Your goal: report items when they’re discovered, not when your memory is feeling optimistic.
How to avoid deadline pain
- Start a “house log” on day one: photos + dates + notes.
- Report issues calmly and specifically to the builder (in writing).
- Don’t assume a conversation equals a submission.
- Keep your list updated—small problems become big ones when ignored.
Boring process, great results. That’s the deal.
Pre-Delivery Inspection (PDI): your best chance to catch issues early
A Pre-Delivery Inspection is the builder-led walkthrough before possession/occupancy. Think of it as the moment where you stop being “excited buyer” and become “responsible future homeowner with a checklist.”
Your goal at PDI is not to be difficult. Your goal is to be accurate. Note what’s incomplete, damaged, missing, or not working properly. Ask how systems operate. Take photos. And if you don’t understand something, ask again—because “I was embarrassed to ask” is a bad reason to live with a problem for 12 months.
PDI pro tip: Bring a phone charger and comfortable shoes. You want your camera battery alive and your patience intact.
How a Tarion Warranty claim typically plays out (without the drama)
Homeowners often picture “filing a claim” as a single step. In reality, warranty resolution is a sequence: you report, the builder has a repair period, and if things aren’t resolved, the process has escalation steps.
Photos/video + date + short description (where/when/how often). This is your foundation.
Give the builder a clear chance to fix it. Written communication keeps the timeline clean.
Use the proper submission window for your home’s warranty timeline.
Most issues should be resolved here when the reporting is clear and access is provided.
Conciliation is where items can be assessed to determine coverage outcomes.
One thing to remember: the process is deadline-driven. “But I told the plumber in March” is not the same as “I reported it properly within the correct window.”
Coverage limits (the numbers homeowners should know)
Tarion Warranty coverage has maximum financial limits. Most homeowners never hit these caps, but they matter a lot in serious situations, in builder failure scenarios, and for larger-scale issues.
Tarion’s published coverage limit summary explains that maximum statutory warranty coverage can be $400,000 for freehold homes (depending on the applicable rules), $300,000 for condominium units, and that condominium common elements coverage can be calculated as $100,000 per unit up to a maximum (with overall project maximums as well). If you like to know where the numbers come from, Tarion lists them directly in the official overview linked earlier.
Practical note: even if you never hit a cap, knowing limits helps you keep expectations realistic—and it helps you understand why the system insists on documentation.
Delayed closing / delayed occupancy: yes, compensation can exist
Many buyers assume Tarion only deals with physical defects after move-in. But the warranty program also includes protections around delayed closing (for freehold/contract homes) and delayed occupancy (for condo units), with compensation up to a statutory maximum in qualifying cases.
If you’re in a delay situation, the details depend on your agreement/addendum and whether exceptions apply (allowable extensions, unavoidable delay, etc.). The key homeowner move is to keep your paperwork organized and pay attention to dates the same way you’d pay attention to money.
What’s commonly NOT covered (and why this surprises people)
The warranty program isn’t designed to cover everything a homeowner dislikes. It’s designed to cover specific categories of defects and issues. Common “surprise” areas include:
- Normal wear and tear (life happens—even in a new house).
- Normal shrinkage as materials dry and settle (some movement is expected in new construction).
- Maintenance-related problems (for example, ventilation/condensation issues that are made worse by homeowner operation).
- Owner-supplied items/work (if you supply it or modify it, you can complicate warranty responsibility).
Homeowner reality: “Not covered” does not automatically mean “the builder is right.” It may simply mean the issue falls outside the statutory warranty scope. Separate question: what does your contract say? What is reasonable workmanship? What do guidelines say?
Tarion vs Ontario Building Code (and why code knowledge helps you)
A surprising number of warranty conversations end up touching the Ontario Building Code. Not because homeowners want to argue code clauses, but because “safe and compliant” is a baseline expectation in new construction.
If you want to understand what changed recently (and why inspectors sometimes focus on different details year to year), read our breakdown: Ontario Building Code Changes for 2025. Even a basic understanding helps you ask better questions and avoid the dreaded “it’s fine” shrug.
If your builder won’t fix something: what should you do?
Most builders want to protect their reputation and keep homeowners happy. But sometimes fixes stall, communication breaks down, or the parties disagree on whether something is warranted.
In those cases, your best strategy is still the boring one: document clearly, keep communication in writing, follow the reporting deadlines, and use the next step in the process when appropriate.
And here’s a separate reality that homeowners should understand (even if they never use it): construction disputes in Ontario have legal frameworks and timelines too. If you’re dealing with serious non-performance, it helps to understand the landscape. This explainer is written from the Ontario context: How to Register a Construction Lien in Ontario. (You may never need it, but knowing the rules often changes how seriously people take deadlines.)
Important: This article is educational, not legal advice. If you’re in a high-stakes dispute, get proper professional guidance. But even then—good documentation is still your best friend.
The “smart homeowner” checklist (print this mentally)
In your first 40 days
- Start a house log (photos + notes + dates).
- Note anything incomplete, damaged, or not working properly.
- Report early, calmly, and in writing.
- Learn how your ventilation and humidity control work.
Before Year 1 ends
- Review your list—don’t rely on memory.
- Follow the correct submission timelines.
- Give access for repairs (schedule reasonably).
- Keep copies of all communication.
Bonus: build quality reduces warranty headaches
The best warranty experience is the one you barely notice—because issues are prevented by good design, good supervision, and good detailing. If you’re planning an energy-efficient build and want the “do it once, do it right” approach (especially with ICF and high-performance envelopes), you’ll find more builder-grade guidance at ICFhome.ca.
Quick wrap-up: the 5 things to remember about Tarion Warranty
Your builder fixes the house; Tarion administers the warranty framework and escalation steps.
Year 1 (broad), Year 2 (water + systems), Years 3–7 (major structural defects).
The best claim in the world can fail if it’s not reported correctly and on time.
It’s your best chance to record issues early and learn how the home is supposed to operate.
Photos, dates, short descriptions, written communication. Boring now, priceless later.
Final note: Homes are complex systems. Most issues are fixable when caught early. The Tarion Warranty system works best when you use it like a system: clear reporting, clear access, clear timelines, and calm documentation.
Scroll sideways to see more. Cards stay the same height (no messy uneven rows).