Tarion is a private corporation that protects the rights of new home buyers and manages new home builders. Tarion administers the Ontario New Home Warranties Plan Act, which outlines the warranty protection that new home purchasers are entitled to in Ontario.
- License new home builders and vendors
- Help educate new home buyers about their warranty rights
- Protect consumers when builders fail to fulfill their warranty obligations.
- Promote high standards of new home construction.
Tarion warranty has become one of the most extensive new home service contract programs in North America. There are three types of Tarion warranty coverage’s: one year, two year and seven year warranties.
One year Tarion warranty requires a home to be free of any material defects and constructed in a workman-like manner, protecting against unauthorized substitutions. It protects against Ontario Building Code Violations, and applies for one year - beginning on the home’s date of possession even if the house is sold.
Two year Tarion warranty protects against water penetration through basement and/or foundation of walls, and defects in materials that affect windows, doors and caulking. It also covers both defects in work or materials in the electrical, plumbing and heating delivery and distribution systems, as well as defects in work or materials in the that result in the detachment, displacement or deterioration of exterior cladding (brick work, vinyl siding.) It also protects against violations of the Ontario building code that affect health and safety and applies for two years, beginning on the home’s date of possession.
Seven year warranty covers major structural defects, and begins the date you take possession of the home and ends the day before the seventh anniversary. Any defect in work or materials in respect of a building, including a crack, distortion or displacement of a structural load-bearing element of the building, if it results in failure of a structural load-bearing element of the building, materially and adversely affects the ability of a structural load-bearing element of the building to carry, bear and resist applicable structural loads for the usual and ordinary service life of the element, or materially and adversely affects the use of a significant portion of the building for usual and ordinary purposes of a residential dwelling and having regard to any specific use provisions set out in the purchase agreement for the home.