New Homes – TARION Warranty Coverage - Falcone Law
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New Homes – TARION Warranty Coverage


New Homes – TARION Warranty Coverage

In Ontario, when you are buying a new home then you are entitled to warranty coverage. The coverage is provided by TARION pursuant to the Ontario New Home Warranties Plan Act. There are some homes that are not covered, including condominium conversions from apartment or other uses, renovated homes and owner-built homes to name a few.

For the most part, if you bought a new unoccupied home from a registered home builder you will be covered for many items, such as protection of your deposit up to certain limits (if the builder goes bankrupt or fundamentally breaches the agreement), delayed closing coverage (if your home is delayed beyond applicable guidelines) and coverage relating to defects in materials and workmanship, unauthorized substitutions, building code violations, water penetration through basement/foundation walls, exterior brickwork defects, and also major structural defects. The coverage time varies from 1-7 years, depending on the item. Coverage also extends to subsequent owners if the original warranty period for that item has not yet expired.

As for the enrolment fee, most builders add this to your closing costs as an adjustment;  the enrolment fee varies depending on the sale price. For more information visit