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Buying New Construction? Tarion Has You Covered!

North Group
Nov 14 3 minutes read

In Ontario, it's mandatory for all newly constructed homes to have a warranty provided by the builder. Tarion's responsibility is to ensure that buyers of these new homes receive the warranty coverage they deserve, as guaranteed by their builder.

Overview of the Warranty

This warranty encompasses both financial protection before homeowners take possession of their new home and safeguards against defects in construction once they have possession.

The warranty is designed to protect homebuyers and owners in Ontario, covering Freehold, Contract, and Condominium/Condo Conversions that are less than seven years old.

Warranty Functionality

A new home qualifies for this warranty if it is constructed by an HCRA licensed builder/vendor and meets four key criteria outlined in the ONHWP Act. These include the presence of a “home,” “vendor,” “builder,” and “owner,” as defined by the HCRA. Coverage starts from the moment the Purchase & Sale Agreement is signed and lasts up to seven years, remaining valid even if the property changes hands. The warranty has certain limits and requires specific responsibilities from both the homeowner and the vendor/builder.

Warranty Issuance

The warranty enrolment fee, a mandatory condition of the Enrolment Confirmation, is paid by the builder or vendor to Tarion. For freehold homes, this fee must be paid before construction begins. In the case of condominium projects, the fee is due at least 30 days before the start of construction.

Pre-Possession Warranty Details

The warranty offers protection both before and after you assume possession of your new home. Key features of the pre-possession coverage include deposit protection, coverage for delayed closing/occupancy, protection against condominium cancellations, and financial loss coverage for contract homes. Detailed information on pre-possession coverage can be found on the Pre-Possession Coverage page.

Post-Possession Warranty Coverage

Post-possession coverage under the warranty is provided for Freehold, Contract, Condo Units, and Condo Conversions. This coverage is segmented into three periods: 1 year, 2 years, and 7 years, each addressing different specific items. To understand what each period covers, homeowners can refer to the dedicated coverage page.

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