When you purchase a newly constructed home or condominium in Ontario, your Tarion warranty coverage doesn’t end when you take possession — it actually begins! The warranty protection is divided into three key phases: 1-year, 2-year, and 7-year coverage periods, each offering different levels of protection for specific types of issues.
Here’s everything you need to know about Tarion warranty coverage after possession.
One-Year Warranty Coverage
The one-year warranty starts on the day you officially take possession of your new property and provides protection for:
- Defects in workmanship and materials
- Unauthorized substitutions of building materials
- Violations of the Ontario Building Code
- Issues affecting the habitability of the home
This initial coverage ensures that your new home meets basic quality and safety standards right from the beginning.
Two-Year Warranty Coverage
The two-year warranty also starts on the date of possession but focuses on more complex structural and mechanical systems. It covers:
- Water penetration through basement or foundation walls
- Building envelope failures, such as leaks through exterior walls, roofs, or windows
- Exterior cladding defects (e.g., detachment or deterioration of brickwork or siding)
- Defects in plumbing, electrical, and heating systems
- Ontario Building Code violations that pose a health and safety risk
This phase addresses critical systems essential to your home’s functionality and durability.
Seven-Year Major Structural Defect (MSD) Warranty
The seven-year MSD warranty offers long-term protection against major structural failures. It covers:
- Failure of load-bearing elements, such as beams, columns, and foundations
- Severe impairment of the home’s ability to support normal structural loads
It also provides protection for substantial structural issues caused by:
- Soil movement and major basement wall cracks
- Chemical failures of construction materials
- Environmental hazards like excessive radon
- Collapse or major distortion of joints or roof structures
This coverage ensures the fundamental integrity of your home over the long term.
Additional Tarion Warranty Protections
Extended Warranty for Missing Items
If certain items are missing when you take possession of your new home (e.g., appliances, fixtures):
- An extended warranty applies once the missing items are installed.
- You must report missing items to Tarion using an official warranty form within the first year after possession.
Temporary Relocation Allowance
If your home becomes uninhabitable due to a warranted issue, Tarion may provide compensation for temporary accommodations.
Eligibility includes situations where:
- Kitchen is unusable
- All toilets and/or showers are non-functional
- Staircase to upper floors is unsafe
- Structural integrity of the home is compromised
- Toxic mold or another hazardous substance is present
Allowance Details:
- Up to $150/day, with a maximum total of $15,000.
What Tarion Warranty Does Not Cover
Certain conditions and issues are excluded from Tarion warranty coverage, such as:
- Homeowner-supplied materials, designs, or work
- Secondary damage (e.g., personal injury, property loss) resulting from a warranty-covered defect
- Normal wear and tear
- Natural material shrinkage due to drying
- Dampness, condensation, or ventilation issues caused by the homeowner
- Damage by the homeowner, guests, or contractors
- Unauthorized alterations or additions
- Land settlement (except under footings)
- Contractual warranties outside the Ontario New Home Warranties Plan Act
- Damage from insects or rodents unless construction defects exist
- Damage from municipal services or utilities
- Surface defects accepted in writing at the time of possession
For a full list of exclusions, always refer to the official documentation from the Home Construction Regulatory Authority (HCRA).
Final Thoughts
The Tarion Warranty After Possession offers Ontario homeowners critical protection for defects and structural issues in their new homes. By understanding the timelines and what’s covered, you can better manage your expectations, address concerns promptly, and ensure your home remains safe and durable for years to come.
Always review your Tarion warranty documents carefully and consult legal advice if you need assistance navigating claims or understanding your rights.