What Is Tarion in Ontario? The Straight Answer on New Home Warranties (and What Homeowners Get Wrong)
What is Tarion and what is its role in Ontario’s new home warranty program?
If you’re buying (or already living in) a new home in Ontario, you’ll hear “Tarion” thrown around like it’s a person. Sometimes it’s said with confidence. Sometimes it’s said like a threat. And sometimes it’s said the way people say “I think the dog ate my homework.”
Here’s the straight answer: Tarion administers Ontario’s statutory new home warranty program. That means Tarion runs the process, timelines, and dispute steps that connect you (the homeowner) and the builder’s warranty obligations. It’s a system—like a rulebook, a scoreboard, and a referee—wrapped into one.
Tarion in plain English: the warranty administrator
Ontario’s new home warranty isn’t a “nice extra.” It’s statutory—meaning it exists because the province says it does. When a new home is built and sold through the normal builder/vendor route, there are warranty rules that apply, and Tarion administers that program. In practical terms, that means Tarion:
How warranty items are reported, when they’re due, and how they move forward if unresolved.
Those “forms” and deadlines aren’t suggestions. They’re part of how coverage is accessed.
Through steps like conciliation, Tarion can assess whether items are covered under the warranty.
If a builder can’t or won’t meet obligations in certain situations, Tarion can be a backstop (within limits and rules).
Important: Your builder is still the one who physically fixes things. Tarion is the framework and process that helps make the warranty enforceable and consistent across Ontario.
Tarion vs HCRA: who does what (and why homeowners get this wrong)
Ontario split responsibilities in a way that’s actually helpful—once you understand it. Tarion handles the warranty program administration (claims, timelines, conciliation). The Home Construction Regulatory Authority (HCRA) is the regulator for licensing and oversight of builders and vendors.
If your question is “Is this builder licensed?” or “This builder’s conduct is unacceptable,” that’s typically HCRA territory. If your question is “Is this defect covered, and how do I push it forward in the warranty system?” that’s Tarion territory. Different roles. Different tools. Different outcomes.
The coverage windows: why people talk about 1-year, 2-year, and 7-year
The warranty coverage is commonly discussed in three time buckets that start on your possession (or occupancy) date. This doesn’t mean “nothing matters outside those buckets.” It means the type of coverage and the reporting process change depending on how long you’ve been living in the home.
Year 1: workmanship, materials, and “does this meet basic standards?”
Year 1 is the broad coverage period. It generally includes defects in workmanship and materials, Ontario Building Code issues, whether the home is fit for habitation, and issues around substitutions (what you were promised vs what you received). This is also the window where “small stuff” is easiest to fix because trades are still in the mindset of the project.
Year 2: water penetration and core building systems
Year 2 is where the warranty focuses more on building performance—especially issues that can cause real damage if ignored. This often includes water penetration through the building envelope and foundation, plus defects in work and materials related to plumbing, electrical, and heating delivery/distribution systems.
Years 3–7: major structural defects
This is the “big stuff” coverage. Major structural defects (MSDs) generally involve failure or serious impairment of a load-bearing element, or conditions that materially and adversely affect the home’s use as a home. If Year 1 is “fit and finish” and Year 2 is “performance,” the seven-year coverage is “structural integrity.”
The part that matters most: the process (and why missing it causes the drama)
Most warranty frustration doesn’t come from the concept of coverage. It comes from the system being timeline-driven. You can have a legitimate issue and still end up stuck if it isn’t reported correctly and on time. Tarion’s modern process uses key reporting points in the first year (often described as an Initial submission, a Mid-Year submission, and a Year-End submission), followed by second-year reporting and then MSD reporting after year two.
1Start documenting from day one
Photos, short videos, dates, and a one-line description of where/when it happens. This is boring… until you need it. Then it’s gold.
2Tell the builder early (in writing)
Tarion is process-heavy. Written notice helps prove timelines and gives the builder a clear chance to fix things.
3Submit through the proper channel on time
Your warranty rights are tied to reporting windows. Don’t rely on “we talked about it.” Use the system.
4Builder repair periods happen
Once items are submitted, the builder typically has a defined repair period to address them.
5If unresolved: conciliation and next steps
If the builder doesn’t resolve covered items, Tarion can assess items through conciliation (often including an inspection) and determine coverage outcomes.
Builder tip: “Specific and calm” beats “vague and loud.” If you want results, describe the symptom like a jobsite note: location + conditions + frequency + photos.
Coverage limits: yes, there are caps
Tarion coverage has maximum financial limits that depend on the home type and the date the purchase agreement was signed. For example, Tarion lists higher limits for certain newer agreements (like a freehold cap up to $400,000 for qualifying purchase dates), and different caps for condo units and common elements. These caps matter for catastrophic situations, builder failure scenarios, and larger claims—not for a sticky door latch.
Delayed closing / delayed occupancy: yes, there can be compensation
Many buyers don’t realize the warranty ecosystem includes rules around delayed closing (freehold) and delayed occupancy (condo), including potential compensation up to a statutory maximum in qualifying situations. Whether you qualify depends on your agreement, addendum language, and whether any exception applies. The key takeaway is simple: keep your paperwork, and don’t wait until you’re furious to start reading the dates.
Common misunderstandings that cause 90% of the headaches
1) “Tarion covers everything.”
No. Warranty is not the same as maintenance, wear-and-tear, or “I don’t like how it looks.” Some items are specifically excluded, and some issues fall into maintenance expectations (like ventilation/condensation management) rather than warranted defects.
2) “If I told the site supervisor, I’m covered.”
Verbal conversations help relationships. But timelines are proven with records. If it matters, put it in writing and submit properly.
3) “I’ll wait until the end of the year and submit one big list.”
That’s how people miss windows. Report items as you go. Fixes are easier early, and you don’t end up trying to remember whether the leak started in October or “maybe last spring?”
4) “Conciliation is the first step.”
Usually it’s not. The system expects the builder to have a chance to repair first, and the conciliation step is typically used when issues remain unresolved.
Helpful Ontario resources (exact link rules: 3 internal + 3 external)
Here are six helpful next reads. Exactly three are internal to BuildersOntario.com, and exactly three are external (including one to icfhome.ca). No naked links — all anchored properly.
- How to Get a Building Permit in Ontario
- Ontario Building Code Changes for 2025
- New Home HST Rebate Calculator Ontario
- Tarion: The New Home Warranty
- HCRA: What We Do
- ICFhome.ca
If you only do one thing after reading this: start a “house file” folder (digital is fine) and keep photos, dates, and emails. Most warranty disputes aren’t solved by louder voices — they’re solved by clearer records.
Tarion Warranty Q&A (Ontario): Clear Answers Without the Legal Fog
These answers follow the current Tarion program language and timelines (including the newer “Initial / Mid-Year / Year-End” first-year submission structure). No links here (per your request). Just the answers, laid out cleanly.
Tarion & Ontario’s New Home Warranty Program — Questions & Answers
1What is Tarion and what is its role in Ontario’s new home warranty program?
Tarion administers Ontario’s statutory new home warranty and protection program. In practical terms, Tarion runs the homeowner reporting timelines and forms, the builder repair periods, and the dispute steps (including conciliation) used to determine whether items are covered and what happens next.
2Is the Tarion warranty mandatory for all new homes built in Ontario?
For the typical “buying a new home from a builder/vendor” situation, the statutory warranty is part of Ontario’s framework and builders must enroll homes in the program. Some edge cases (certain owner-built/contract-home arrangements) can have special rules, so the smart move is to confirm enrollment/coverage early—before construction or closing.
3How long does the Tarion new home warranty typically last?
The warranty is structured into time periods starting on your possession/occupancy date:
- Year 1 (workmanship/materials, code issues, substitutions, fit for habitation)
- Year 2 (water penetration and key systems coverage, plus certain health/safety code issues)
- Years 3–7 (Major Structural Defects)
4What specific defects or issues are covered under the one-year warranty?
Year 1 is broad and commonly includes:
- Defects in workmanship and materials
- Ontario Building Code violations
- Unauthorized substitutions (promised item vs delivered item without agreement)
- Whether the home is fit for habitation
Builder tip: report early. Items are faster/cleaner to fix before a “small issue” becomes “secondary damage.”
5What types of issues are covered under the two-year warranty, particularly regarding plumbing, heating, and electrical systems?
Year 2 commonly includes:
- Water penetration through basement/foundation walls
- Water penetration into the building envelope
- Detachment/displacement/deterioration of exterior cladding (brickwork/siding, etc.)
- Defects in work/materials in the electrical, plumbing, and heating delivery & distribution systems
- Certain Ontario Building Code violations related to health and safety
6What constitutes a major structural defect, and how is it covered under the seven-year warranty?
A Major Structural Defect (MSD) is generally a defect in work or materials that:
- Results in failure of a structural load-bearing element; or
- Materially and adversely affects that element’s load-bearing function; or
- Materially and adversely affects the use of the building as a home
MSD coverage runs to the seventh anniversary of possession/occupancy (process and reporting are handled through the MSD claim path).
7What is the maximum financial coverage limit provided by Tarion for warranty claims?
Coverage limits depend on the home type and (in some cases) the date your purchase agreement was signed. Tarion lists caps such as:
- Freehold homes: maximum statutory coverage can be up to $400,000 for certain agreements
- Condominium units: up to $300,000
- Condo common elements: up to $100,000 × number of units, capped at $3.5 million
- Condo project combined cap: Tarion lists a maximum combined project cap (units + common elements)
Important: the remaining cap can be reduced if prior claims have already been paid on the home/project.
8What is a Pre-Delivery Inspection (PDI), and what is its significance for new homeowners?
A PDI is a mandatory, builder-led, floor-by-floor walkthrough before keys are handed over. It’s your first big chance to:
- See the home in a “nearly finished” state
- Record incomplete/damaged/non-functioning items
- Learn basic operation of systems and features
Think of it as the official “condition snapshot” before possession. Calm + thorough wins.
9What is the process for submitting a warranty claim to Tarion and my builder?
A practical step-by-step flow:
- Notify the builder early and in writing (photos/video + dates help)
- Add/report the item through the warranty reporting process for your home (often via the MyHome portal)
- Once a form is submitted, it triggers a builder repair period (commonly described as 120 days in the regular process)
- If items aren’t resolved, you can request conciliation within the allowed window for that submission
10What are the critical deadlines for submitting warranty forms, such as the 30-day, one-year, and two-year forms?
Tarion’s current structure uses these first-year submission points (based on your possession/occupancy date):
- Initial Form: the first submission is on day 41 (this replaced the old “30-day” idea)
- Mid-Year Form: submission on day 183
- Year-End Form: you can add items from day 183; the form is automatically submitted on day 365
- Year-End grace: Tarion notes a 10-day grace period may apply if you can show written evidence the issue was reported to the builder during the first year
- Second-Year Form(s): can be submitted during year two
- MSD Form: after year two, up to year seven
Bottom line: don’t “save it for later.” Use the correct submission windows for your home.
11Is the Tarion warranty transferable to subsequent owners if I sell my new home?
Yes, the statutory warranty coverage can apply to subsequent owners during the remaining warranty period. However, the transfer is not “automatic paperwork by magic”—the new owner should get properly registered in Tarion’s system and set up their own MyHome access.
12What steps can a homeowner take if their builder fails to address or rectify warranted defects?
Escalate through the warranty process:
- Ensure the item is reported correctly and on time
- Let the builder repair period run (document what was/wasn’t done)
- Request conciliation during the allowed request window
- If you disagree with Tarion’s decision/assessment, request a Decision Letter and consider an appeal (see Q20)
13What is a conciliation inspection, and when and how can a homeowner request one from Tarion?
Conciliation is the step where Tarion assesses items on a submitted form to determine warranty coverage and outcomes. In the regular process, submitting a form triggers a builder repair period; if items remain unresolved, you can request conciliation within a limited window tied to that submission.
In the current approach, homeowners can typically request conciliation for a submission during defined periods (for example, for Initial and Mid-Year submissions from the start of the builder repair period up to the next submission date; and for Year-End items up to a defined number of days after the Year-End point).
14Does Tarion provide coverage or compensation for delayed closings or occupancies of new homes?
Yes. The program includes coverage for delayed closing (often discussed for freehold/contract homes) and delayed occupancy (for condos), with potential compensation up to a statutory maximum (commonly shown as $7,500) in qualifying situations. Eligibility depends on your agreement/addendum and whether exceptions (like allowable extensions or unavoidable delay) apply.
15What happens to a homeowner’s warranty coverage if their builder declares bankruptcy?
Builder bankruptcy can affect who performs repairs, but it doesn’t automatically erase the statutory warranty framework. Tarion can provide direction for affected homeowners and, where applicable, can act as a financial backstop within the program’s rules and caps.
Practical tip: keep your reporting timelines tight and document everything—bankruptcy situations get administrative fast.
16How does the Tarion warranty apply to the common elements of a new condominium development?
Common elements are typically claimed by the condominium corporation (not individual unit owners) once the corporation exists/registration occurs. Coverage includes major structural defects and other covered defects in common elements, subject to the program’s timelines and limits for common elements coverage.
Note: certain condo types (such as some common elements or vacant land condo structures) have different coverage rules for common elements—so the project type matters.
17What are some common exclusions or items that are explicitly not covered by the Tarion new home warranty?
Common “not covered” themes include:
- Normal wear and tear and routine maintenance
- Normal shrinkage as materials dry and settle after construction
- Owner-caused damage or owner-supplied items/work (depends on situation)
- Secondary damage beyond the warranted repair scope (for example, broader property damage claims can have limits)
- Condensation/dampness issues tied to insufficient ventilation/maintenance
If you’re unsure, the “coverage” question is best answered by matching the symptom to the program wording and documenting conditions.
18How can new homeowners register for and utilize the MyHome online portal for managing their warranty?
MyHome is Tarion’s online portal used to manage warranty items, submissions, reminders, and correspondence. New owners (including resale owners) should create their own account so reminders and notices go to the right person and so you can see the claim history and upcoming deadlines.
19What is the distinction between Tarion and the Home Construction Regulatory Authority (HCRA)?
HCRA is the regulator that licenses/oversees builders and vendors (conduct, licensing compliance, public registry). Tarion administers the warranty program (claims process, timelines, repair periods, conciliation, and certain compensation mechanisms).
Quick memory trick: HCRA = licensing & oversight. Tarion = warranty process & claims.
20What is the process for appealing a decision made by Tarion regarding a warranty claim?
If you disagree with Tarion’s assessment, the typical path is:
- Request a Decision Letter from Tarion for the items you want to challenge
- File a Notice of Appeal to the Licence Appeal Tribunal (LAT) and pay the fee within 30 days of being served the Decision Letter
Appeals are deadline-driven. If you’re considering it, get organized quickly.
21Do I need Tarion warranty coverage for a new home in Ontario?
If you’re buying a new home from a builder/vendor in Ontario, you generally don’t “opt in” to Tarion—the statutory warranty framework is part of the system. The real questions are:
- Is the builder licensed?
- Is the home properly enrolled?
- Do you understand the reporting deadlines and how to document issues?
If you’re building on your own land under a custom/contract arrangement, confirm how the warranty rules apply to your exact structure before the project is underway.
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