Important information for homeowners about warranty sales calls

Tarion has recently received questions from homeowners who have been contacted by an ‘Ontario home warranty’ company offering to sell them warranty coverage for their home or appliances for a monthly fee. 

Please be advised that these calls are not from Tarion. We do not sell warranty coverage, nor are we affiliated with any organization claiming to do so. 

Under the Ontario New Home Warranties Plan Act, builders are legally required to enrol the homes they build with Tarion and to provide warranty coverage of up to $300,000 for a full seven years. Tarion guarantees the warranty if the builder is unwilling or unable to fulfill its obligations. The cost of this coverage is paid by the builder in the form of a one-time home enrolment fee. The enrolment fee is based on the sale price of the home and ranges from $435 to $2,034. This cost may be passed on to the homeowner as part of their closing costs. An overview of the warranty can be found here.  Tarion guarantees the warranty mandated under the Act and is not responsible for processing or resolving any claims under warranty coverage provided by a third party.  

If you are contacted by a company offering warranty coverage for a fee, do not provide any personal or financial information over the phone but instead request full contact information for the company and the details of the offer in writing. Before signing any agreement for warranty coverage, homeowners should review it carefully and consider having it reviewed by a real estate lawyer.  
 

    

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