In Ontario, almost every new home from a builder, including new bungalows, comes with a legally required warranty backed by Tarion. It covers defects in work and materials, key systems like plumbing and electrical, water getting in, and major structural problems, for set periods after you take possession. It also protects your deposit and covers some closing delays. Here’s how it works and how to use it.
Key takeaways
- New home warranties in Ontario are required by law and backed by Tarion.
- Coverage comes in tiers, from short-term workmanship to long-term structural defects.
- You must report problems on Tarion’s forms within set deadlines.
- The warranty also protects deposits and offers some delayed-closing compensation.
- Builders must be licensed by the Home Construction Regulatory Authority.
Who backs new home warranties in Ontario?
Two organizations share the job. Tarion administers the new home warranty program and handles claims when builders don’t fix covered problems. The Home Construction Regulatory Authority, or HCRA, licenses builders and vendors and regulates their conduct.
Before you buy a pre-construction bungalow, look up the builder on the HCRA’s Ontario Builder Directory. It shows licence status, past homes built and any warranty or conduct issues.
What does the Tarion warranty cover?
Coverage is split into tiers that run for different lengths of time from your possession date. Your warranty certificate and Tarion’s website list the exact periods, so keep them handy.
| Warranty tier | Examples of what’s covered |
|---|---|
| Short-term workmanship and materials | Poor workmanship, faulty materials, Ontario Building Code violations |
| Mid-term systems and envelope | Water getting through the basement or building envelope, electrical, plumbing and heating defects |
| Long-term major structural defects | Defects that affect the structure’s load-bearing parts or make the home unsafe or unusable |
For a bungalow, the basement and roof get extra attention. A large footprint means more foundation and more roof, so water problems are the claims to watch for most.
Deposit and delayed closing protection
Pre-construction buyers often hand over sizeable deposits long before closing. Tarion’s program protects deposits up to set limits if a builder goes bankrupt or fundamentally breaches the agreement.
The Tarion addendum in your agreement also sets rules for closing dates. Builders must give proper notice of delays, and if they miss certain dates, you may be entitled to compensation. Read our guide to the new bungalow construction timeline to see where delays usually happen.
How to make a warranty claim, step by step
- Do the pre-delivery inspection (PDI). Walk the home with the builder before closing and record every defect. This becomes your starting record.
- Keep a list as you live in the home. Note issues with photos and dates.
- Submit Tarion’s forms on time. There are set windows to report problems, including an early form after you move in and another near the end of your first year. Missing a window can cost you coverage.
- Give the builder time to fix it. Builders get a repair period after each form is filed.
- Ask Tarion for help if needed. If items aren’t fixed, you can request a conciliation inspection, where Tarion reviews whether the item is covered.
Bungalow tip: Set calendar reminders for every Tarion deadline on the day you get your keys. Busy first months fly by, and deadlines are strict.
What to check during your bungalow PDI
Your pre-delivery inspection sets the record for everything that follows. Take your time and bring a checklist, a flashlight and painter’s tape to mark spots.
- Floors: scratches, gaps, squeaks and uneven tiles
- Walls and ceilings: nail pops, cracks and paint touch-ups
- Doors and windows: smooth opening, tight seals and working locks
- Kitchen and baths: chipped counters, cabinet alignment and running taps
- Basement: damp spots, foundation cracks and a working sump pump
- Outside: grading that slopes away from the house, downspouts and siding
- Accessibility items you paid for: door widths, no-step entry and shower details
Write everything down, even small things. An item noted at the PDI is much easier to resolve later.
What isn’t covered by the warranty?
The warranty is strong, but it isn’t a maintenance plan. Common exclusions include:
- Normal wear and tear and minor shrinkage cracks
- Damage from owner neglect, poor maintenance or alterations
- Damage caused by the homeowner or their contractors
- Many items covered by manufacturers’ warranties, such as appliances
- Some exterior items, depending on the agreement and timing
Keep up with regular upkeep using our bungalow maintenance checklist. Good records help if a claim is ever questioned.
Does the warranty transfer when you sell?
Yes. Tarion coverage stays with the home, not the owner. If you buy a fairly new resale bungalow, any warranty time left transfers to you. Ask the seller for their warranty paperwork, past forms and any repair records. Learn which papers matter in our guide to home ownership documents.
Frequently asked questions
Is the Tarion warranty included in the price of a new home?
The builder enrolls the home in the program, and the cost is built into the purchase price. You don’t buy it separately.
Can I fix a defect myself and claim it later?
That’s risky. Fixing a covered defect yourself before reporting it can void coverage for that item. Report it first and let the builder repair it.
Does the warranty cover custom homes built on my own lot?
Often yes, if the builder is licensed and enrolls the home. Confirm this with your builder and Tarion before construction starts.
The bottom line
A new bungalow comes with real protection, but only if you use it. Inspect carefully, keep records and file every form on time.
This is general information, not legal advice. Ask a real estate lawyer to review your builder agreement and Tarion addendum before you sign. If you’re weighing new against resale, browse bungalows for sale across Ontario to compare your options.
