What it is
Coverage includes financial protection before you take possession and protection against construction defects after you take possession.
How it works
A new home built by an HCRA licensed builder/vendor is eligible if it meets four criteria under the ONHWP Act (there must be a “home”, “vendor”, “builder”, and “owner” each of these are defined on the HCRA Website. The coverage begins when you sign the Agreement of Purchase & Sale, and remains in effect for up to 7 years even if the home is sold. Each warranty comes with certain limits and obligations on you as a home buyer and owner, as well as your vendor/builder.
Who it protects
Ontario home buyers and owners of Freehold, Contract, Condominium/Condo Conversions under 7 years old.
Who provides the warranty
The vendor or builder pays the warranty enrolment fee to Tarion as a term and condition of an Enrolment Confirmation. For freehold homes, the fee is payable anytime before the start of construction. For condominium projects, the fee is payable at least 30 days before construction begins.
Coverage before you take possession
Your warranty coverage includes protection both before, and after you take possession of your new home. See below for an overview of the warranty coverage.
Financial Protection Before You Take Possession
Warranty coverage includes financial protection before you take possession. There are four main types of warranty coverage during this period including deposit protection, delayed closing/occupancy coverage, condominium cancellations and financial loss coverage for contract homes. For more details on coverage before you move in visit our Pre-Possession Coverage page.
Coverage After You Take Possession
Your warranty coverage includes protection both before, and after you take possession of your new home. See below for an overview of the warranty coverage.
Freehold, Contract, Condo Units & Condo Conversions
Coverage for freehold, contract, condo units and condo conversions after you take possession is divided into three different time periods: 1, 2 and 7 year with each offering protection against specific items. To learn more about what’s included in these time periods, visit our coverage page for homeowners.
Coverage After You Take Possession
Incidental Costs
Occasionally new home owners face incidental costs as a result of authorized repairs to one or more warranted items in their new home or condominium. In such cases, Tarion may consider providing additional compensation for the incidental costs associated with moving and/or replacing items during the course of a warranted repair being done by or on behalf of Tarion. For more information, visit our incidental costs coverage page.
Incidental Costs
Coverage limits
Below is a summary of the coverage limits for projects where the first Agreement of Purchase & Sale (APS) is signed either on/after February 1, 2021 or before that date.
Agreement of Purchase & Sale signed before February 1, 2021
- The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
- The maximum coverage for condominium common elements is $50,000 times the number of units, up to a maximum of $2.5 million.
- The maximum combined coverage for a condominium project (units and common elements) is $50 million.
- There is a maximum of $15,000 for warranted damage caused by environmentally harmful substances or hazards and a maximum of $25,000 for coverage of septic systems.
Agreement of Purchase & Sale signed on or after February 1, 2021
- The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
- The maximum coverage for condominium common elements is $100,000 times the number of units, up to a maximum of $3.5 million.
- The maximum combined coverage for a condominium project (units and common elements) is $50 million.
- There is a maximum of $50,000 for warranted damage caused by environmentally harmful substances or hazards.