What is Tarion?
Tarion is Ontario's mandatory new home warranty corporation that provides statutory protection to home buyers against construction defects and builder non-performance.
Tarion Warranty Group is a non-profit corporation authorized by Ontario law to administer the statutory warranty on newly constructed homes and condominium units. Coverage is required by the Ontario Building Code for most new residential construction.
Tarion's basic protection includes:
- One-year coverage for defects in construction (workmanship and materials).
- Two-year coverage for defects in major systems like plumbing, electrical, heating, and cooling.
- Seven-year coverage for structural defects in basement walls, foundations, and load-bearing elements.
The warranty also protects buyers if the builder stops work, abandons the project, or fails to complete promised work. Tarion steps in to complete the home or issue compensation to the buyer.
Homebuyers cannot opt out of Tarion coverage, and builders cannot override these protections. Agents working with new construction and presale properties in Ontario should understand that Tarion registration is standard on new homes under the Homes Act, making it a core feature of transaction disclosure.
Tarion claims are filed directly with the corporation, and disputes go to an independent dispute resolution process before potential litigation.