- If you bought a newly built home, you likely have statutory warranty coverage through Tarion that specifically addresses major structural defects, on top of any contractual promises from…
- Ontario's mandatory new-home warranty program, administered by Tarion, is structured in tiers commonly described as Year 1, Year 2, and Year 7 protection, with the Year 7 period…
- For a resale home, there's no statutory structural warranty backing you up.
A crack that turns out to be more than cosmetic, a floor that isn't level, a foundation wall that's bowing — structural problems are among the most expensive surprises a new homeowner can face. What you can actually do about it depends heavily on one thing: whether you bought a new home or a resale.
Foundation or structural problems found after closing in Ontario are handled through two very different legal frameworks, and mixing them up can cost you time you don't have.
This article separates the new-build path from the resale path, and walks through what to do either way.
Why Property Type Changes Everything
If you bought a newly built home, you likely have statutory warranty coverage through Tarion that specifically addresses major structural defects, on top of any contractual promises from the builder. If you bought a resale home, there's no equivalent statutory warranty — you're working within the general framework of caveat emptor and its exceptions instead.
Figuring out which framework applies is the first step to knowing what to do next.
New Homes: Tarion Warranty Coverage
Ontario's mandatory new-home warranty program, administered by Tarion, is structured in tiers commonly described as Year 1, Year 2, and Year 7 protection, with the Year 7 period specifically addressing major structural defects. This is not blanket coverage for every possible issue for seven years — it's a defined category of protection, and the process for making a claim has its own procedures through Tarion directly. If your structural problem surfaces within the applicable coverage period, Tarion is generally your starting point, not a lawsuit against the builder.
Separately, every new-home builder and vendor operating in Ontario must be licensed by the Home Construction Regulatory Authority (HCRA) — a different body from Tarion, which handles warranty claims and deposit protection specifically.
Resale Homes: Caveat Emptor and Its Exceptions
For a resale home, there's no statutory structural warranty backing you up. Instead, the question is whether the seller knew about the problem and failed to disclose it, actively concealed evidence of it, or made a false statement about it, including through a Seller Property Information Statement, if one was provided. A structural issue that was genuinely hidden and unknown to the seller is treated very differently than one the seller was actively managing before listing the home, such as patching cracks rather than addressing the underlying cause.
New vs. Resale: How the Paths Compare
| New home (within warranty period) | Resale home | |
|---|---|---|
| Primary framework | Tarion statutory warranty | Caveat emptor and its exceptions |
| Who you generally deal with first | Tarion, then the builder | The seller directly, and possibly their agent |
| What you need to show | The defect falls within covered structural categories | The seller knew, concealed, or misrepresented the condition |
| Licensing backdrop | Builder must be HCRA-licensed | No equivalent regime for resale sellers |
Steps to Take When You Discover the Problem
- Don't start major repairs immediately. Document the condition first with photos, video, and a written account of when and how you discovered it.
- Get a qualified structural assessment, not just a general contractor's opinion, describing the nature, extent, and likely cause of the problem.
- Identify which framework applies — check whether you're still within an applicable Tarion coverage period for a new build, or working from the resale framework.
- Pull your file together — your Agreement of Purchase and Sale, any SPIS, inspection reports, and, for new builds, your Tarion warranty documents and builder correspondence.
- Speak with a lawyer before committing to major repairs, since how and when you fix the problem can affect your options.
Frequently asked questions
My home is five years old — am I still covered by Tarion?
It depends on the specific coverage tier and when your original warranty period began; the structural, commonly described as "Year 7," coverage runs longer than the earlier tiers but addresses a narrower category of major structural defects specifically. Check your Tarion documentation or contact Tarion directly to confirm your status.
Can I sue my resale seller even if my home inspection didn't catch the problem?
Possibly, particularly if the problem was genuinely undetectable through a standard inspection and there's evidence the seller knew about it and didn't disclose it. Whether your inspection "should have" caught it is often a central and contested question in these disputes.
Is a foundation crack always a serious structural problem?
Not necessarily — many cracks are cosmetic settling that don't affect structural integrity, while others signal a genuine problem. A qualified structural assessment, not a general impression, is how that distinction gets made.
What if I bought a resale home that was originally new and might still have some Tarion coverage left?
Tarion warranty coverage can, in some circumstances, extend to subsequent owners for the remainder of the original coverage period. Check your specific documentation and confirm directly with Tarion rather than assuming either way.
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