What is Tarion and why is it important to me?

As the regulator of Ontario’s new home building industry, Tarion registers new home builders and vendors, enrols new homes for warranty coverage, investigates illegal building practices, resolves warranty disputes between builders/vendors and homeowners, and promotes high standards of construction among Ontario’s new home builders. Tarion also works with the building industry to help educate new home buyers about their warranty rights, and about how to protect and maintain their warranty.

Tarion Warranty Corporation is a private corporation that was established in 1976 to protect the rights of new home buyers and regulate new home builders.

Tarion is responsible for administering the Ontario New Home Warranties Plan Act, which outlines the warranty protection that new home and condominium builders must provide, by law, to their customers.

The primary purpose of Tarion is to ensure that builders abide by this legislation, and to step in to protect consumers when builders fail to fulfill their warranty obligations.

New home buyers in Ontario are entitled to limited warranty coverage of up to $300,000 over a seven year term which is provided by the builder and backed by Tarion. There is also separate coverage of up to $2.5 million for the common elements of a condominium (such as a lobby or garage).

Builders must enrol every new home with Tarion at a cost that is based on the selling price of the home. The warranty provides excellent value and remains with the home for seven years, even if it is sold during this period. While the vast majority of builders are able to resolve any deficiencies or other issues that arise to the satisfaction of new home buyers, Tarion stands behind newly constructed homes and is there to help if a dispute about coverage does arise.

We do this by administering the new home warranty and ensuring that builders observe specific customer service standards. We also provide a process for making claims that involves working with the purchaser, the builder and other parties such as the local municipality if needed. In situations where a builder is unwilling or unable to address an issue that falls under the statutory warranty coverage, we will work directly with the homeowner to resolve the matter.

If a builder or homeowner disagrees with one of our decisions, they may appeal through various channels. Purchasers may appeal our decisions through the province’s Licence Appeal Tribunal, or if they feel that they have been treated unfairly by us, they may contact the Tarion New Home Buyer Ombudsperson. Builders who disagree with a Tarion warranty decision may appeal it through our Builder Arbitration Forum.

Tarion is an integral part of the overall value delivered when buying a new home. Resale does not come with a warranty! Homes by DeSantis provides new-homeowner seminars for purchasers to introduce and explain Tarion.

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