Is there a fee for the Tarion new home warranty in Ontario?

Most newly built homes in Ontario are enrolled in a statutory warranty program administered by Tarion (formerly the Tarion Warranty Corporation). The cost of this enrollment is passed on to the buyer by the builder and appears as a line item in your agreement of purchase and sale or as an adjustment on your closing statement.

The enrollment fee is based on the purchase price of the home and follows a published schedule. Builders are required to enroll new homes in the Tarion program, so the warranty is not optional for covered properties — it is a statutory protection that comes with new construction.

The Tarion warranty covers builders' workmanship and materials defects over varying periods: one year for certain defects, two years for specific categories such as electrical, plumbing, and heating systems, and seven years for major structural defects. The enrollment fee effectively pays for this warranty coverage, though the protection runs with the home and is transferable to subsequent buyers within the warranty periods. Buyers of new homes should register their warranty with Tarion directly after closing to be able to submit claims. Your lawyer can advise on the warranty terms relevant to your specific purchase agreement.