The program warrants that the home is free from defects in materials and workmanship, is fit to live in, and meets the Ontario Building Code requirements for one year from the date that purchaser was entitled to occupy.
Homeowners are responsible for notifying both the builder and the Tarion New Home Warranty Program in writing of any defects before the end of the first year. If Tarion does not receive notice in writing within the warranty period, the claim might not be allowed.
- Water seepage through the basement or foundation walls (in condominiums, this protection includes all below-ground areas such as parking garages)
- Defects in materials and work including caulking, windows and doors so that the building envelope prevents water penetration
- Defects in materials and work in the electrical, plumbing and heating delivery and distribution systems
- Defects in materials and work which result in the detachment, displacement or deterioration of exterior cladding
- Violations of the Ontario Building Code’s health and safety provisions
A builder can extend the closing date up to a total of 120 days at any time prior to closing by giving written notice of the extension. However, if the builder does not give the following written notice of delays, you may be able to claim compensation for out-of-pocket expenses. A claim can only be made when you become the owner.
A builder anticipating a delay in closing of more than 15 days must notify you at least 65 days before the original closing date and set a new closing date. The builder may extend the closing date once by up to 120 days, if you are given written notice at least 65 days before the closing date.
A builder anticipating a delay in closing of no more than 15 days beyond the original or extended date as outlined above must notify you at least 35 days before the original or extended closing date and set a new closing date.
The builder is allowed up to five days grace regarding last-minute closing delays without penalty. Beyond that, any builder who fails to give proper notice will be required to compensate you up to $100 a day for living expenses plus all direct costs caused by the delay, to a maximum of $5,000.
To be compensated, you must complete the purchase. If the builder refuses to close, call your TARION Office for information on how this will affect coverage. Keep your receipts for expenses. Claim forms are available from TARION. You must submit your claim in writing to TARION before the end of the first year warranty period.
There is no compensation for delays caused by events beyond the builder’s control, e.g., strikes, fires, civil insurrection, floods or acts of God, or for delays which are caused by the purchaser.
(For Agreements of Purchase and Sale signed on or after April 1, 1991)
As in the case for delayed closings for freehold homes, the builder may extend the confirmed occupancy date once by up to 120 days, if you are given written notice at least 65 days before the confirmed date. The builder can also have a 15-day extension if you are given 35 days notice. In all cases, builders are allowed a five-day grace period.
Any builder who fails to give proper notice will be required to compensate you up to $100 a day for living expenses plus all direct costs caused by the delay, to a maximum of $5,000.
Be sure you bring any problems to the attention of your builder and TARION in writing before the end of the warranty period. For example, if you took possession of your new home on June 15, 1998, the first, second and seven year warranties expire at midnight on June 14 of the appropriate year. Make a note of when your warranty coverages expire.
If TARION does not receive your notice in writing within the warranty period, your claim cannot be allowed. In your letter, describe the problem and ask the builder to correct it. Remember to include the enrolment number, your complete address, lot and plan numbers, or the condominium address and unit number. Condominium unit owners who experience common element problems should write to their Board of Directors once the condominium is registered. The board is responsible for bringing common element problems to the attention of the builder and TARION, if necessary.
Written notice of any complaint about a repair must be received by TARION within the time period for the repair warranty to apply.
| SALE PRICE (exclusive of GST) | Unit Fee (incl. PST & GST) |
| FreeHold and Condo | |
| Up to $100,000 | $511.75 |
| $100,000 – $150,000 | $540.50 |
| $150,000 – $200,000 | $598.00 |
| $200,000 – $250,000 | $655.50 |
| $250,000 – $300,000 | $713.00 |
| $300,000 – $350,000 | $770.50 |
| $350,000 – $400,000 | $828.00 |
| $400,000 – $450,000 | $885.50 |
| $450,000 – $500,000 | $943.00 |
| $500,000 or more | $1,000.50 |
Effective February 15, 2000, the deficit recovery fee of $100 (+GST +PST) is being removed. However, if the builder filed their enrolment form before February 15, 2000, the deficit recovery fee still applies.
