Is a new home in Ontario covered by a warranty?
Yes. New homes built by a licensed builder in Ontario are covered by a statutory warranty administered by Tarion Warranty Corporation under the Ontario New Home Warranties Plan Act. This warranty provides protection at several levels: a one-year warranty on defects in workmanship and materials (with some coverage for Ontario Building Code violations), a two-year warranty covering water penetration, heating and electrical delivery systems, and other major systems, and a seven-year warranty covering major structural defects.
The warranty protects you as the buyer even if the builder who built the home has since gone out of business. Coverage is tied to the home, not to a specific builder-buyer relationship. The deposit paid to a registered builder is also protected up to certain limits under the warranty program in case the builder fails to complete construction.
When purchasing a newly constructed home, your lawyer will confirm that the builder is enrolled with Tarion. If you encounter defects after moving in, you must report them through Tarion's process within the specified time frames.
Key takeaways
- Ontario new homes carry a statutory warranty through Tarion for up to seven years.
- Coverage tiers: one year (workmanship), two years (major systems), seven years (structural).
- Deposits paid to registered builders are also protected up to specified limits.
- Report defects through Tarion's process within the warranty period.