New Home Warranties

Builders in Ontario are deemed to provide statutory warranty coverage as described in the Ontario New Home Warranties Plan Act.


This coverage includes:

• Protection for deposits;
• Protection against Financial Loss for Contract Homes;
• Compensation for delays in closing or occupancy;

Protection against unauthorized substitutions;
One and two year warranties for certain defects in work and materials;
A seven year warranty for major structural defects; and
Coverage for condominium common elements (the common or shared area of condominium buildings.)
The maximum statutory warranty coverage available for new 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. 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.

Tarion administers the Ontario New Home Warranties Plan Act, which outlines the warranty protection that new home purchasers are entitled to in Ontario. Tarion is a private corporation which was established in 1976 to protect the rights of new home buyers and regulate new home builders.

Learn more at the Tarion website for Ontario’s new home buyers.