Tarion
The not-for-profit that administers Ontario's new-home warranty, covering defects for up to seven years and protecting deposits.
Tarion is an independent not-for-profit organization established by the Ontario government. It administers the statutory new-home warranty set out in the Ontario New Home Warranties Plan Act. The warranty covers newly built freehold homes, condominium units and contract homes in Ontario. Other provinces run their own new-home warranty programs.
The warranty has three coverage periods, counted from your date of possession. The one-year warranty covers workmanship and materials, fitness for habitation, Ontario Building Code compliance and unauthorized substitutions. The two-year warranty covers water penetration through the basement or foundation walls, windows and the building envelope. It also covers defects in electrical, plumbing and heating delivery and distribution systems. Exterior cladding defects and Building Code violations affecting health and safety are covered too. The seven-year warranty covers major structural defects.
Tarion also protects deposits. For a new freehold home, deposit coverage is up to $60,000 if the price is $600,000 or less. Above that, it is 10% of the price, to a maximum of $100,000. Since April 1, 2026, Tarion asks freehold buyers to register their purchase within 45 days of signing. Registering late, or not at all, may mean a lower amount of deposit coverage. Freehold buyers may also be able to claim up to $7,500 from the builder for some closing delays.
Claims follow strict deadlines. You report problems through Tarion's MyHome portal on set forms. Year one uses the Initial, Mid-Year and Year-End Forms. Then come the Second-Year Form and the Major Structural Defect Form, which runs to year seven. Normal wear and tear, poor maintenance and damage caused by owners or third parties are generally excluded. Freehold warranty coverage has a maximum of $400,000.
Tarion runs the warranty but does not license builders. Licensing is handled by the Home Construction Regulatory Authority (HCRA).
Sources
- Tarion: Warranty information for freehold homes (effective May 1, 2024)
- Tarion: 50th anniversary news release (Feb 2026)
- Tarion: Claim forms and timelines
- Tarion: Industry professionals, 45-day freehold registration
Last reviewed October 16, 2026.
Related terms in New Build & Warranty
- Certificate of Completion and Possession The Tarion warranty certificate your builder provides at possession, recording the date that starts your warranty clock.
- Home Construction Regulatory Authority Ontario's regulator that licenses new-home builders and vendors and runs the public Ontario Builder Directory.
- Home Inspection A buyer-hired, visual check of a home's condition and major systems, with licensing rules that vary from province to province.
- Major Structural Defect The most serious structural problem in a new Ontario home, covered by Tarion's seven-year warranty from the date of possession.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.