What is Tarion warranty?

Tarion warranty is the statutory protection program administered by Tarion Warranty Corporation, Ontario's regulatory body for new home builders. Most builders of new residential homes in Ontario must enrol and maintain coverage to legally sell new homes in the province.

The program covers three main areas. First, it protects buyer deposits paid before closing, ensuring money held in trust cannot be lost if the builder fails. Second, it covers financial losses if closing is unreasonably delayed beyond the agreed completion date. Third, it provides warranty coverage on construction defects within set timeframes: one year for general defects, two years for water penetration, and up to ten years for structural elements like the foundation and frame.

Tarion coverage is mandatory for builders of houses, townhouses, condos, and other residential units. Buyers cannot waive Tarion protection, and it transfers to subsequent owners during the warranty period. Coverage limits vary by claim type and defect category. Builders enrolled in the program must maintain financial reserves and follow building standards set by Tarion, which also investigates disputes and enforces builder compliance.

For real estate agents and home buyers in London, Ontario, verifying a builder's active Tarion enrollment is a standard due diligence step. New construction condo providers and builders must display Tarion documentation at the point of sale.