Understanding the Tarion Warranty Program in Ontario
The Tarion Warranty Program is a consumer protection initiative in Ontario designed to safeguard buyers of newly built homes. Administered by Tarion, an independent, not-for-profit corporation, this program plays a key role in Ontario’s new home construction landscape by ensuring builders meet specific standards and that homeowners are protected, as mandated by the Ontario New Home Warranties Plan Act (“the Act”).
All builders in Ontario must be registered with Tarion and must provide this statutory warranty when selling a new home or condominium, offering buyers reassurance that their investment is protected.
One of Tarion’s primary responsibilities is to license and regulate new home builders and vendors in the province. Builders must be registered with Tarion before they can legally construct or sell a new home. As part of this process, Tarion assesses a builder’s technical experience, financial background, and track record to ensure they are capable of delivering homes that meet Ontario Building Code standards and warranty obligations. This licensing system helps filter out unqualified or dishonest builders and promotes accountability within the residential construction industry.
In addition to providing statutory warranty coverage, Tarion also provides education for both homeowners and builders about their rights and obligations under the Act. Tarion offers resources, guides and tools to help homeowners understand what’s covered under their warranty and how to make a claim. For builders, Tarion provides training and compliance support to help them maintain high standards and meet warranty requirements. This seeks to improve transparency and trust in Ontario’s new home market.
When purchasing a newly built home directly from a builder, the Tarion warranty coverage begins on the date of possession and provides protection in three main phases: the one-year, two-year, and seven-year warranties. The one-year warranty provides coverage for items like defects in workmanship and materials, unauthorized substitutions, and violations of the Ontario Building Code. The two-year warranty provides coverage for things like defects related to electrical, plumbing, heating, building envelope and water penetration. The seven-year warranty can provide coverage for major structural defects. Homeowners are required to submit claims within a specified time frame online.
If you purchase a resale home that is still within its Tarion coverage period (which can be up to 7 years after being built), you may still benefit from the remaining warranties. As the warranty is tied to the home and not the original owner, it is transferrable to the new owner. It is important to confirm the remaining coverage by checking the home’s enrollment on the Tarion website.
While Tarion provides broad protections, there are several exclusions to be aware of. Some examples of exclusions would be that the warranty does not cover regular wear and tear, damage caused by the homeowner/third parties or issues resulting from improper maintenance of the home.
The Tarion Warranty Program plays a vital role in protecting Ontario homeowners, whether you are purchasing a brand-new home or a resale home that is still under warranty. Understanding what is covered, how to file claims and what responsibilities the homeowner assumes can help ensure a smooth homeownership experience. It’s always recommended to review your home’s warranty coverage early and document any concerns thoroughly to protect your rights.
Please make sure to see Tarion’s website for more information and further details.
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