Tarion warranty타리온 (신축 주택 보증)

What is it?

Tarion is the not-for-profit organization that runs Ontario’s new home warranty program under the Ontario New Home Warranties Plan Act. The Ontario government gave it this job. The CAO guide describes Tarion as an "independent not-for-profit consumer protection organization established by the Ontario government to administer the province’s new home warranty program".

The key point is that the warranty comes from the builder (the "vendor" or "builder"). The law makes every builder who sells a new home warrant that it is properly built, and Tarion runs a "guarantee fund" that backs the builder up if it does not honour the warranty. So you report a problem to the builder first, and claim from Tarion if it is not fixed.

Tarion is not the builder, and it does not license builders. Builder licensing and the code of ethics belong to the HCRA. An April 2026 HCRA resource puts it simply: builder conduct issues go to the HCRA, warranty claims and construction defects go to Tarion.

Which homes are covered?

New homes built by an HCRA-licensed builder: detached and semi-detached houses, townhouses, condo units and their common elements, and "contract homes" that a builder builds on land you already own. Coverage begins when you sign the Agreement of Purchase and Sale, stays with the home if it is sold, and lasts up to seven years from possession.

A home you build yourself (an owner-built home) is not covered. Residential condo conversions (an existing building turned into condos) whose first agreement was signed on or after January 2018 are covered, but the pre-existing elements are excluded from the one-year workmanship and materials warranty.

The disclosure statement for a new condo must say whether the property will be enrolled in the warranty plan (Condominium Act, s. 72 (3) (f)). If you buy a resale home less than seven years old, the HCRA directory shows the remaining warranty.

After you move in: 1, 2 and 7 years

Normal wear and tear, shrinkage from drying, condensation from poor ventilation, changes made by the owner, materials the owner supplied and appliance failures themselves are excluded (Act, s. 13 (2)). See "What is not covered" on Tarion’s site for the full list.

How much is the coverage limit?

The limits depend on the date the first Agreement of Purchase and Sale in the project was signed. For agreements signed on or after July 1, 2023, the maximum is $400,000 for a freehold home, $300,000 for a condo unit, $100,000 per unit up to $3,500,000 for condo common elements, and $50,000,000 for a whole condo project (units plus common elements). Damage from environmentally harmful substances is capped at $50,000.

For agreements signed between February 1, 2021 and June 30, 2023, the freehold limit is also $300,000, and for earlier agreements the common-element limit is $50,000 per unit up to $2,500,000.

If a warranty repair makes the home unlivable, the builder is expected to pay temporary relocation costs of up to $150 a day to a maximum of $15,000 (Temporary Relocation Warranty).

Before you move in, part 1: deposit protection

If the deal does not close because the builder goes bankrupt or fundamentally breaches the contract, or because you used a statutory right to cancel (for example the 10-day condo cooling-off period), and the builder does not refund your deposit, Tarion’s guarantee fund pays. Since January 2018 this includes money paid for upgrades and extras. Money paid to "hold" a home before the contract is signed is not protected.

Condo units: under the Condominium Act, deposits must be held in trust (by a trustee or the builder’s lawyer, not by the builder itself). If the builder ends the agreement, it must refund the deposit in full within 10 days. If the builder does not return your deposit, Tarion protects it up to $20,000. Tarion advises talking to a lawyer before treating the agreement as terminated.

Freehold homes: for agreements signed on or after January 1, 2018, deposits are protected up to $60,000 if the price is $600,000 or less, and up to 10% of the price (maximum $100,000) if the price is over $600,000.

From April 1, 2026, freehold buyers must register their purchase with Tarion within 45 days of signing to qualify for the maximum coverage. Those who register late or not at all are paid from a separate fund of $15,000,000 a year, shared out proportionally if claims exceed it. Tarion has said it will defer this change to coverage until January 1, 2027. A lawyer or agent can register for you. Condo and contract-home buyers do not have to register.

Before you move in, part 2: delay compensation and the Addendum

Every new home agreement must have the Addendum developed by Tarion and the HCRA attached. Its first page is the Statement of Critical Dates, which both sides sign, setting a tentative or firm occupancy (condo) or closing (freehold) date and an outside date. If the Addendum conflicts with anything else in the agreement, the Addendum wins.

The builder may extend dates under the rules (normally 90 days’ written notice), but if a firm date is missed it must pay delayed closing or occupancy compensation of $150 a day for living expenses, up to $7,500. Real costs such as moving and storage can be added with receipts, and if the builder gives less than 10 days’ notice of a delay, $1,500 ($150 × 10 days) is added. "Unavoidable delays" such as strikes, fires and pandemics are exceptions.

If the outside date is missed, you have 30 days to terminate the agreement and get all your money back with interest. Claim delay compensation from the builder within 180 days of your closing or occupancy date (or termination), and from Tarion during the first year of possession if the builder does not pay.

For a contract home (a builder builds on your land) there is no delay compensation; instead, if the builder fails to substantially finish the contract, financial loss compensation of up to $40,000 is available.

How do you make a claim?

1. At the pre-delivery inspection (PDI), record every scratch, missing item and thing that does not work on the PDI form and get a copy. You also receive the Certificate of Completion and Possession (CCP), which shows the start date of your warranty.
2. When a problem appears, tell the builder in writing within the warranty period. Tarion encourages homeowners to raise issues in writing as soon as possible.
3. If the builder does not fix it, submit a warranty form (Initial Form, Mid-Year Form, Year-End Form and so on) through Tarion’s online service (MyHome). The law says the warranty applies only to claims made within the warranty period (s. 13 (4)), so check each form’s deadline on Tarion’s website and do not miss it.
4. Tarion gives the builder a chance to repair, and if the problem remains, a conciliation inspection decides whether the item is covered. By law Tarion must give reasons for its decision, and you can appeal to the tribunal within the set time (s. 14 (13)–(14)).
5. Deposit and delay claims use separate forms. You provide the agreement, copies of cancelled deposit cheques and other documents, and Tarion says a claim can take up to six months to assess, longer if disputed.

Example