Every new home sold in Ontario is backed by a statutory warranty administered by Tarion Warranty Corporation. Whether you are buying a detached home in Orillia, a townhome in Severn, or a custom build in Oro-Medonte, this warranty exists to protect you against defects in workmanship, materials, and structural integrity.
Understanding what Tarion covers -- and what it does not -- is essential before you sign an Agreement of Purchase and Sale. This guide explains the warranty structure, the Pre-Delivery Inspection process, how to submit claims, and practical tips for buyers in the Orillia and Lake Country corridor.
What Is Tarion?
Tarion is a private, not-for-profit corporation designated by the Ontario government to administer the Ontario New Home Warranties Plan Act. Every builder who constructs and sells new homes in Ontario must be registered with Tarion and must enrol each home before construction begins. The enrolment fee funds the warranty program and the deposit protection that comes with it.
Tarion is not an insurance company and it is not a government agency. It is a regulator and warranty administrator. If your builder fails to honour the warranty, Tarion steps in to resolve the issue -- either by directing the builder to make repairs or, in certain circumstances, by arranging repairs directly and recovering costs from the builder.
The Three Tiers of Warranty Coverage
The Tarion warranty provides three overlapping layers of coverage, each with a different duration and scope. All coverage periods begin on the date you take possession of the home (not the date the agreement was signed or the date construction started).
One-Year Warranty
The one-year warranty is the broadest tier. It covers:
- Defects in workmanship and materials: This includes issues like improperly installed flooring, cracked tiles, doors that do not close properly, and paint defects
- Unauthorised substitutions: If the builder used different materials than what was specified in the Agreement of Purchase and Sale or the construction drawings, those substitutions are covered
- Ontario Building Code violations: Any aspect of the home that does not meet the Ontario Building Code as it existed at the time the building permit was issued
This is the warranty tier that catches the majority of issues new homeowners encounter. Common one-year claims include drywall cracks from settling, minor plumbing leaks, window hardware malfunctions, and gaps in trim and mouldings.
Two-Year Warranty
The two-year warranty covers a narrower but more significant set of issues:
- Water penetration through the building envelope: Leaks through walls, windows, doors, and the roof system
- Defects in the electrical, plumbing, and heating delivery and distribution systems: This covers the systems themselves, not individual fixtures (a leaking faucet is a one-year item; a defective supply line is a two-year item)
- Ontario Building Code violations affecting health and safety: A stricter subset of Building Code issues that present a risk to occupants
- Defects in the building envelope, including cladding: Issues with the exterior finish, insulation, vapour barriers, and other components that protect the home from the elements
The two-year warranty is particularly important in the Orillia corridor, where winter temperatures regularly drop well below freezing. Envelope failures that might go unnoticed in milder climates can cause significant damage when ice and snow are involved.
Seven-Year Warranty
The seven-year warranty covers major structural defects only. Tarion defines a major structural defect as a defect in work or materials that:
- Results in the failure of a load-bearing part of the home's structure, or
- Materially and adversely affects the use of the building for residential purposes
This is a high threshold. Foundation cracks that affect structural integrity, a compromised roof truss system, or a defective load-bearing wall would qualify. Cosmetic settling cracks in concrete or minor shifting would not.
What Tarion Does Not Cover
Understanding the exclusions is as important as understanding the coverage. Tarion does not cover:
- Normal wear and tear: Fading paint, worn carpet, and general aging of finishes
- Damage caused by the homeowner: Alterations, improper maintenance, or neglect
- Landscaping and exterior features: Sod, plants, fences, and decorative elements (unless specifically included in the APS)
- Secondary damage from homeowner actions: For example, if you alter the lot grading and water enters the basement as a result, that damage is not covered
- Items beyond the builder's control: Municipal infrastructure issues, acts of nature, and soil conditions that were disclosed before purchase
- Appliances: Appliances are covered by their own manufacturer's warranties, not Tarion
- Fixtures and finishes beyond normal quality standards: Tarion assesses workmanship against industry standards, not perfection. Minor variations in wood grain, tile colour, or paint sheen are considered normal
The Pre-Delivery Inspection (PDI)
The Pre-Delivery Inspection is one of the most important milestones in the new home buying process. It occurs after construction is substantially complete and before you take possession. During the PDI, you walk through the home with a builder representative and document every deficiency on the official Tarion PDI form.
How to Prepare for Your PDI
- Bring your Agreement of Purchase and Sale and any change orders or design centre selections. Compare what was promised to what was built.
- Allow plenty of time. A thorough PDI takes two to four hours for a typical single-family home. Do not rush.
- Consider hiring a professional inspector. An independent home inspector familiar with Ontario new construction can catch issues you might miss. This is a separate engagement from the PDI itself -- the inspector attends as your advisor.
- Test everything. Run every faucet, flush every toilet, turn on every light switch, open every window and door, test the furnace and air conditioning (if seasonal), check all outlets with a tester, and run the kitchen appliances.
- Look beyond the cosmetic. Check grading and drainage around the foundation. Look for water stains in the basement. Open electrical panels and look for proper labelling. Check attic access points for insulation depth.
- Photograph everything you note. Photos create a dated record that supports any future claim.
The PDI Form
Every item documented on the Tarion PDI form becomes an official record. The builder is obligated to address these items, and if they fail to do so, Tarion can step in. Items not documented on the PDI form can still be claimed later (within the warranty periods), but having them on the PDI form strengthens your position.
You will also receive a Certificate of Completion and Possession at the PDI. This is the document that triggers the start of the warranty period. You do not have to sign it at the PDI if you believe the home is not substantially complete -- consult your lawyer if you are unsure.
Filing a Warranty Claim
If an issue arises after you move in, the process for filing a warranty claim is straightforward, but there are specific steps and timelines you must follow.
Step 1: Contact Your Builder
Your first step is always to contact the builder directly, in writing (email or registered mail). Describe the issue clearly, include photographs, and request a repair. Give the builder a reasonable opportunity to respond -- Tarion generally considers 30 days reasonable for non-emergency items.
Step 2: Submit to Tarion (If Unresolved)
If the builder does not respond or does not resolve the issue satisfactorily, you can submit a formal claim through Tarion's online portal (MyHome at tarion.com). You must submit claims within the applicable warranty periods:
- 30-Day Form: For items discovered within the first 30 days of possession that were not on the PDI form
- Year-End Form: Submitted between the 330th and 365th day after possession for one-year warranty items
- Second-Year Form: Submitted between the 18th and 24th month for two-year warranty items
- Major Structural: Can be submitted any time within the seven-year period
Step 3: Conciliation
If a dispute arises between you and the builder about whether an item is covered or whether a repair is adequate, Tarion will conduct a conciliation inspection. A Tarion inspector visits the home, examines the items in question, and issues a written decision. Both the builder and the homeowner can appeal conciliation decisions to the Licence Appeal Tribunal.
Deposit Protection
In addition to the warranty, Tarion provides deposit protection for buyers of new homes. If a builder goes bankrupt or fails to deliver the home, Tarion protects your deposits up to a maximum amount that depends on the type of home:
- Freehold homes: Up to $100,000 in deposit protection
- Condominium units: Up to $100,000 in deposit protection
This protection applies to deposits held by the builder. To qualify, ensure your deposits are made payable to the builder's lawyer in trust or directly to the builder as specified in the APS. Always confirm that your builder is registered with Tarion before signing any agreement -- you can verify registration on the Tarion website.
Choosing a Builder: What Tarion's Records Tell You
Tarion maintains a public registry of all licensed builders in Ontario. For each builder, you can look up:
- Whether their registration is active and in good standing
- The number of homes they have enrolled in recent years
- Their conciliation and claims history
While the absence of claims does not guarantee quality (new builders have short track records), a pattern of unresolved claims or regulatory actions is a meaningful warning sign. When comparing builders in the Orillia corridor, checking their Tarion record should be one of your first steps.
Tips for Orillia and Lake Country Buyers
The climate and geography of the Orillia corridor create conditions that can test a new home's construction quality. A few considerations specific to this area:
- Winter performance matters. Pay attention to insulation quality, window seals, and the heating system during your first winter. Issues with the building envelope often reveal themselves when temperatures drop below minus 20 Celsius. Document any drafts, condensation on windows, or ice damming on the roof -- these are potential two-year warranty items.
- Grading and drainage are critical. The corridor has varied terrain, and many new developments are built on formerly agricultural or forested land. Ensure the grading directs water away from your foundation. If you notice ponding or pooling within the first year, report it promptly.
- Well and septic systems (if applicable). Some new homes in Severn, Oro-Medonte, and rural parts of the corridor are on private well and septic systems rather than municipal services. These systems are covered by Tarion for workmanship and materials in the first year and for health and safety Building Code compliance for two years.
- Document seasonal changes. Take photos of your property in each season during the first year. Spring thaw can reveal grading issues that were invisible in summer or fall. Snow load can stress roof systems. A seasonal photo record is invaluable if you need to file a claim.
Frequently Asked Questions
Can I transfer the Tarion warranty if I sell my home?
Yes. The Tarion warranty stays with the home, not the original buyer. If you sell your home during the warranty period, the remaining coverage transfers automatically to the new owner. No paperwork or notification to Tarion is required for the transfer.
Does the warranty cover a finished basement?
If the builder finished the basement as part of the original construction (included in the APS), it is covered under the warranty like any other part of the home. If you finish the basement yourself after taking possession, those renovations are not covered by Tarion.
What if my builder goes out of business?
If your builder ceases operations, Tarion continues to honour the warranty. You submit claims directly to Tarion, and they arrange and pay for repairs from the guarantee fund. This is one of the key protections of Ontario's mandatory warranty system.
Are there deadlines I cannot miss?
Yes. The 30-Day Form, Year-End Form, and Second-Year Form all have specific submission windows. Missing the window does not eliminate your coverage, but submitting within the designated periods ensures Tarion processes your claim promptly and includes it in the scheduled conciliation process. Major structural defect claims can be submitted at any time within seven years of possession.