Tarion is one of the most misunderstood parts of building or renovating a home in Ontario. Homeowners often assume it’s a blanket guarantee on any work done to their house — and just as often discover, at the worst possible moment, that it doesn’t apply to their project at all. So here’s a plain-English explanation of what the Tarion warranty actually is, what it covers across its 1-, 2-, and 7-year periods, and — the part that matters most for East-Toronto renovators — when it applies to your home and when it doesn’t.
This is general information, not legal advice. For your specific situation, confirm with Tarion or your builder.
What Tarion is
Tarion administers Ontario’s new-home warranty under the Ontario New Home Warranties Plan Act. The warranty itself is provided by your builder — Tarion backs and enforces it. For coverage to exist, two things have to be true: the builder must be licensed (today that licensing is handled by the Home Construction Regulatory Authority, or HCRA), and the home must be enrolled with Tarion. You can confirm both in the public Ontario Builder Directory before you sign anything.
It’s worth separating two names people mix up. HCRA licenses and regulates the builders and vendors themselves (it took over that role in 2021). Tarion administers the warranty program that protects the buyer. A reputable builder is licensed by HCRA and enrols eligible homes with Tarion.
The question every renovator asks: does Tarion cover my project?
For most renovations and additions to an existing, previously occupied home — no, it doesn’t. Tarion protects new homes: new freehold houses, new condo units, and certain rebuilds that meet the legal definition of a new home. A typical renovation, addition, or basement underpinning on a century-old Leslieville semi falls outside that definition.
That surprises people, and it’s exactly why it’s worth understanding before you start. If Tarion doesn’t apply to your renovation, your protection comes from somewhere else entirely: a clear, detailed contract; proper permits and City inspections; your builder’s own workmanship standards; and — with a builder like us — open-book, cost-plus transparency so there are no hidden surprises. The absence of Tarion isn’t a gap to worry about on a renovation; it just means your contract and your builder’s integrity are the warranty.
Woodsmith Insight: We pursued our HCRA licence and Tarion certification even though most of our work is renovation. Why? Because the same discipline that lets us build a fully warrantied new home — proper enrolment, documentation, code compliance — is the discipline we bring to every renovation, warranty or not.
Before you move in: deposit and delayed-closing protection
For new homes, Tarion coverage starts before you ever get the keys.
Deposit protection. If your builder becomes insolvent or fails to return your deposit, Tarion protects it — generally up to $20,000, and up to $60,000 for a freehold home priced at $600,000 or less (for purchase agreements signed on or after January 1, 2018). Condominium deposit protection works differently.
Delayed closing or occupancy compensation. If your builder misses a firm closing or occupancy date, you may be entitled to compensation up to a maximum of $7,500 — which includes $150 per day for living expenses like accommodation and meals during the delay, plus other delay-related costs such as moving or storage.
After you move in: the 1-, 2-, and 7-year warranty
Once you take possession of a new home, coverage runs in three layers, each starting on your possession date:
One-year warranty. The home must be fit to live in, built to the Ontario Building Code, and free from defects in materials and workmanship — with no unauthorized substitutions from what you were promised. This is the broadest layer and covers the everyday defects that show up in a first year.
Two-year warranty. This adds protection for the things that tend to reveal themselves a little later: water penetration through the building envelope or foundation; defects in the electrical, plumbing, and heating delivery systems; defects in exterior cladding; and Building Code violations that affect health and safety.
Seven-year warranty. The longest layer covers major structural defects — failures in load-bearing elements, or defects serious enough to materially affect your ability to use the home as a residence. A major structural defect claim must be made to Tarion, in writing, before the end of the seventh year.
How claims actually work
A few mechanics are worth knowing so coverage doesn’t lapse on a technicality:
Your warranty experience starts with the Pre-Delivery Inspection (PDI) — a walkthrough where you document the home’s condition before taking possession. After that, you don’t report issues whenever you like; you submit warranty forms to Tarion at specific windows (typically within your first 30 days, again near the end of the first year, and near the end of the second year), with major structural defects reportable any time before the end of year seven. Submitting a statutory warranty form opens a defined builder repair period (commonly 120 days) during which your builder addresses the items. Claims are filed through Tarion’s online MyHome portal.
The practical takeaway: the warranty is real and valuable, but it rewards homeowners who keep records and submit on time.
When Tarion matters in the East end — and when it doesn’t
For our neighbourhoods, it usually comes down to one question: new home, or renovation?
A new custom home or full teardown-and-rebuild — say, a new build on a Beaches lot — is covered by Tarion if it’s built by a licensed vendor and properly enrolled, with the full deposit, delayed-closing, and 1/2/7-year protections.
A typical renovation, addition, or underpinning on a century home in Leslieville, Riverdale, or East York generally is not a Tarion matter. Your protection is your contract, your permits and inspections, and your builder’s transparency and systems.
How Woodsmith handles both
If you’re building a new home, we walk you through enrolment, the PDI, the warranty forms, and the timelines so your coverage is intact and you know how to use it. If you’re renovating, we set the expectation clearly that Tarion doesn’t apply — and we replace that reassurance with detailed scopes, full permit compliance, City inspections, and open-book cost-plus pricing. Either way, you know exactly what protects you.
Have a question about whether your project is covered? Get in touch — we’re happy to explain where you stand before you commit.
Frequently asked questions
What does the Tarion warranty cover?
For new homes in Ontario: deposit protection and delayed-closing compensation before you move in, then a 1-year warranty (defects in work and materials, Building Code compliance), a 2-year warranty (water penetration, electrical/plumbing/heating systems, exterior cladding, health-and-safety Code issues), and a 7-year warranty for major structural defects.
Does Tarion cover home renovations or additions?
Generally no. Tarion protects new homes and certain rebuilds that meet the legal definition of a new home. Most renovations and additions to an existing, previously occupied home fall outside Tarion — your protection comes from your contract, permits and inspections, and your builder.
How much deposit protection does Tarion provide?
Generally up to $20,000, and up to $60,000 for a freehold home priced at $600,000 or less (for agreements signed on or after January 1, 2018). Condominium deposit protection differs.
What is the delayed closing compensation?
Up to a maximum of $7,500, including $150 per day for living expenses during the delay plus other delay-related costs such as moving or storage.
How long is the Tarion warranty?
Coverage runs 1, 2, and 7 years from your possession date, with each period covering different items — major structural defects are the 7-year layer.
What’s the difference between Tarion and HCRA?
HCRA licenses and regulates Ontario’s home builders and vendors (since 2021); Tarion administers the new-home warranty that protects buyers. A reputable builder is HCRA-licensed and enrols eligible homes with Tarion.
How do I make a Tarion claim?
Submit the relevant warranty form through Tarion’s MyHome portal within the applicable window. Filing opens a builder repair period (commonly 120 days) to address the items; major structural defect claims must be made before the end of year seven.
