Tej Thakor Broker of Record / Owner 647-684-1731
Pre-Construction Guide

The Tarion Warranty Explained

Buying a brand-new home in Ontario? It comes with a warranty backed by Tarion — and on your Pre-Delivery Inspection (PDI) day, the builder's team hands you the keys and your warranty starts. Most buyers don't fully understand what they're covered for, which forms to file, or the deadlines — and miss out as a result.

This guide explains the Tarion warranty in simple terms: what's included, the 1-year, 2-year and 7-year coverage, your deposit and delayed-closing protection, exactly what a PDI is, the forms you submit and when, and where to register. Bookmark it or share it with anyone buying a builder home.

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What is the Tarion warranty?

Tarion administers Ontario's mandatory new home warranty. Every new home built by a licensed builder is covered — the builder is licensed and regulated by the HCRA (Home Construction Regulatory Authority), and the warranty itself is backed by Tarion. It applies to new freehold homes, condominium units, and condo common elements.

The warranty does three big things: it protects your deposit, it compensates you for certain closing/occupancy delays, and it warranties the home itself for up to 7 years after you take possession.

What's included — your 5 core protections

ProtectionWhat it covers
Deposit protectionYour deposit back (up to program limits) if the builder goes under or there is a valid cancellation.
Delayed closing / occupancyCompensation if the builder misses a firm closing or occupancy date.
1-year warrantyWorkmanship & materials, and compliance with the Ontario Building Code.
2-year warrantyWater penetration, electrical / plumbing / heating systems, exterior cladding, and Building-Code health/safety items.
7-year warrantyMajor structural defects (MSDs).

Deposit & delayed-closing limits (the actual numbers)

CoverageLimit
Freehold deposit (price $600k or less)Up to $60,000
Freehold deposit (price over $600k)10% of the price, to a maximum of $100,000
Condominium depositHeld in trust under the Condominium Act, with a Tarion backstop up to $20,000 per unit
Delayed closing / occupancyUp to $7,500 (incl. $150/day for living expenses)
Max warranty — home/unitUp to $300,000
Max warranty — condo common elements$50,000 × number of units (max $2.5M)
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2026 change: Starting April 1, 2026, freehold buyers must give Tarion notice of their purchase within 45 days of signing to qualify for the maximum deposit coverage. Don't skip this step — your lawyer or REALTOR® can remind you.

The warranty timeline at a glance

Your coverage clock starts the day you take possession at your PDI:

🔑PDI &
Possession
Keys handed over, warranty begins
First 12 months
📋Year 1Workmanship, materials & Building Code
Up to 2 years
🛠️Year 2Water, systems & exterior cladding
Up to 7 years
🏛️Year 7Major structural defects

What is a PDI (Pre-Delivery Inspection)?

The Pre-Delivery Inspection is your walkthrough of the finished home with the builder, just before you take possession. It's one of the most important days in the whole process, because:

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Tip: Bring this checklist mindset to your PDI — test every outlet, tap, window and appliance, photograph everything, and make sure each item is written on the PDI form before you sign. Consider hiring a professional PDI inspector.

The warranty forms you submit — and when

You report warranty issues to Tarion through your free online MyHome account, using specific forms at specific times:

FormWhen you submit itWhat it's for
30-Day FormFirst 30 days after possessionList deficiencies found in your first month.
Year-End FormLast 30 days of Year 1 (days 335–365)List any outstanding 1-year warranty items.
Second-Year FormAnytime during Year 2Report 2-year warranty items (water, systems, cladding).
Major Structural Defect FormYears 3 through 7Report a major structural defect (MSD).
  1. Give the builder a chance to repair within the warranty repair period.
  2. If items aren't resolved, request a Tarion conciliation — Tarion assesses what's warranted.
  3. Tarion can order the builder to fix it, or step in if the builder won't.
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Deadlines are strict. Submit each form inside its window — even for items the builder has promised to fix verbally. The form is your protection.

How & where to register

Your builder enrols the home with Tarion, and you activate your own coverage online:

Visit Tarion.com to register & learn more →

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Need the official rules, forms or to set up your MyHome account? Everything is at tarion.com — the official source for Ontario's new home warranty.

How to contact Tarion

If you need to reach Tarion directly — to ask a question, submit documents, or follow up on a claim — here is how:

NeedHow to reach Tarion
Submit documents / formsUse your MyHome account at tarion.com (the fastest, official way)
Email customer servicecustomerservice@tarion.com
Contact page / web formtarion.com/contact
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When you email Tarion, complete all required fields (marked with an asterisk *). For submitting documents electronically, MyHome is the preferred channel.

What Tarion does NOT cover

Buying a builder or pre-construction home and want to get the warranty right? Tej Thakor & Usha Parmar guide buyers through the PDI, the Tarion forms and deadlines, and the whole pre-construction process. Reach out with any questions — or if you're thinking about buying a new build, let's talk before you sign.

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This is a plain-language overview, not legal advice. For official rules, limits and the current forms, see tarion.com and confirm with your lawyer.

Frequently Asked Questions

Is the Tarion warranty free?
The warranty itself is provided by your builder and backed by Tarion, but there is an enrolment fee — typically paid by the buyer at closing as part of closing costs. Once enrolled, coverage protects you for up to 7 years.
What is a PDI (Pre-Delivery Inspection)?
A PDI is your walkthrough of the finished home with the builder, just before possession. The builder hands over the keys and your warranty documentation that day, and you list every deficiency on the PDI form. It is a key step to trigger and protect your warranty rights, so do not rush it.
How long does the Tarion warranty last?
Up to 7 years. You get a 1-year warranty on workmanship and materials, a 2-year warranty on water penetration, major systems and exterior cladding, and a 7-year warranty on major structural defects.
How much of my deposit is protected?
For a freehold home priced at $600,000 or less, up to $60,000; over $600,000 it is 10% of the price up to a maximum of $100,000. Condominium deposits are held in trust under the Condominium Act, with a Tarion backstop up to $20,000 per unit.
What forms do I submit and when?
The 30-Day Form (first 30 days), the Year-End Form (last 30 days of year one), the Second-Year Form (anytime in year two), and the Major Structural Defect Form (years three to seven). You submit them through your free Tarion MyHome account, and the deadlines are strict.
Where do I register my Tarion warranty?
Your builder enrols the home with Tarion. You create a free MyHome account at tarion.com to submit forms and track claims. From April 1, 2026, freehold buyers must give Tarion notice of their purchase within 45 days of signing to qualify for maximum deposit coverage.
What if the builder won't fix a warranted item?
Submit the correct warranty form within its window, give the builder the chance to repair, then request a Tarion conciliation. Tarion assesses the item and can order the builder to repair it — or step in if the builder does not.
How do I contact Tarion?
You can email Tarion customer service at customerservice@tarion.com, use the contact form at tarion.com/contact, or submit documents and forms electronically through your free MyHome account at tarion.com. MyHome is the preferred way to submit warranty documents.
Call Tej Now 647-684-1731