Tarion’s New 45 Day Deadline That Starts the Day You Sign

Tarion administers Ontario’s new home warranty: one year for materials, workmanship and Building Code compliance, two years for water penetration and electrical, plumbing and heating systems, and up to seven years for major structural defects. From April 1, 2026 a purchaser of a new freehold home must give Tarion notice of the purchase within 45 days of the agreement of purchase and sale to remain eligible for full deposit protection, with the coverage consequences deferred to January 1, 2027.

Last updated: August 2026

45 days

From signing, to notify Tarion, freehold homes

$400,000

Freehold deposit coverage, agreements from July 1, 2023

1, 2 and 7 years

The three defect warranty periods

If you are buying a new freehold home in Ontario, there is a deadline you have probably never
heard of, it is 45 days long, and it starts the day you sign.

Miss it and your deposit protection changes. This is new, it applies from 2026, and in my
experience almost nobody at the signing table is mentioning it.

First, what Tarion actually is

Tarion administers Ontario’s new home warranty program. If you buy a newly built home from a
builder, the warranty comes with it. You do not buy it and you cannot opt out of it.

It covers two different things people constantly confuse: your deposit before you
move in, and defects after you do.

The defect warranty, by year

Diagram of Tarion new home warranty coverage: one year for materials, workmanship and Building Code compliance, two years for water penetration and electrical, plumbing and heating systems, and seven years for major structural defects.

Year one: workmanship, materials and the Building Code

Defects in materials and workmanship, unauthorised substitutions, and failure to meet the Ontario Building Code. This is the broadest year and the one most claims come from.

Years one and two: water, systems and cladding

Water penetration through the basement or foundation, defects in the electrical, plumbing and heating delivery systems, and major cladding defects.

Up to year seven: major structural defects

The long tail. Structural problems that show up years after possession.

What the deposit protection is worth

For agreements signed on or after July 1, 2023, Tarion states maximum coverage of
$400,000 for freehold homes and $300,000 for condominium units,
with common elements covered at $100,000 per unit up to $3.5 million, a $50 million cap across a
condo project, and up to $50,000 for environmental damage. Agreements signed before February 1, 2021
sit at lower limits.

New in 2026: freehold buyers must notify Tarion within 45 days of signing, or their deposit protection changes

From April 1, 2026, a purchaser of a new freehold home is required to give Tarion notice of the purchase within 45 days of entering into the agreement of purchase and sale. Buyers who give that notice remain eligible for the full deposit protection. Buyers who do not are reported to fall under a separate fund with an annual sub-limit rather than the standard limit. Tarion has signalled a transition period, with the deposit coverage consequences deferred to January 1, 2027. The reason behind it is worth knowing: it is aimed at illegal building and at sales the program never sees. But the practical effect is that a deadline now exists that did not exist before, it runs from signing rather than closing, and nothing about a normal transaction will remind you of it.

What to actually do about it

If you sign an agreement for a new freehold home, put a 45 day reminder in your calendar that
day and ask your lawyer, in writing, to confirm the notice has been given. Do not assume the
builder does it for you. The requirement is on the purchaser.

What Tarion does not cover

This is where expectations go wrong.

Normal wear and tear, and damage from your own neglect or alterations.
Anything you were told about and accepted at the pre-delivery inspection.
Resale homes. The warranty runs from the first possession, so buying a two
year old house means you may inherit remaining coverage, not a fresh seven years.
Missing the claim windows. The warranty is a claims process with forms and
dates. A defect you knew about and did not report inside the window is a defect you now own.

The single most valuable habit

Document everything at the pre-delivery inspection, including things the builder promises to
come back and fix. A verbal assurance from a site supervisor is worth exactly nothing in a warranty
claim eighteen months later. A dated list, submitted properly, is worth a great deal.

This is general information, not legal advice

Warranty coverage, limits and deadlines depend on your agreement date and the type of home, and
they changed in 2021, 2023 and again for 2026. Confirm the current position directly with Tarion
and have a real estate lawyer review any new build agreement before you sign it.

Sources: Tarion coverage limits for agreements signed on or after July 1, 2023, published on tarion.com. The 45 day notice of purchase requirement effective April 1, 2026 and the deferral of deposit coverage consequences to January 1, 2027 as reported by Bennett Jones, Soloway Wright, TitlePLUS and Robins Appleby. Tarion’s own pages could not be retrieved directly at the time of writing, so confirm the current requirement with Tarion before relying on it.

Where This Comes From

Coverage limits from Tarion’s published figures for agreements signed on or after July 1, 2023. The 45 day notice requirement is as reported by several Ontario real estate law firms; Tarion’s own pages were not retrievable when this was written, so confirm the current requirement directly with Tarion.

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Frequently Asked Questions

What does the Tarion warranty cover?

One year covers defects in materials and workmanship, unauthorised substitutions and failure to meet the Ontario Building Code. Two years covers water penetration, defects in electrical, plumbing and heating delivery systems and major cladding defects. Up to seven years covers major structural defects.

What is the new Tarion 45 day rule?

From April 1, 2026, purchasers of new freehold homes are required to give Tarion notice of the purchase within 45 days of entering into the agreement of purchase and sale. Buyers who give notice remain eligible for full deposit protection; those who do not are reported to fall under a separate fund with an annual sub-limit. Deposit coverage consequences are deferred to January 1, 2027.

How much deposit protection does Tarion provide?

For agreements signed on or after July 1, 2023, Tarion publishes maximums of $400,000 for freehold homes and $300,000 for condominium units, with common elements at $100,000 per unit up to $3.5 million, a $50 million cap across a condominium project and up to $50,000 for environmental damage.

Does Tarion cover a resale home?

The warranty runs from the date of first possession, so buying a two year old home may mean inheriting the remaining coverage rather than starting a fresh seven years. It does not create new coverage for an older resale property.

What is not covered by Tarion?

Normal wear and tear, damage caused by the owner’s own neglect or alterations, and items identified and accepted at the pre-delivery inspection. Claims also have to be made within the applicable windows, so a defect known about and not reported in time is generally not recoverable.

Tarion’s New 45 Day Deadline That Starts the Day You Sign

Tarion’s New 45 Day Deadline That Starts the Day You Sign

First, what Tarion actually is

The defect warranty, by year

What the deposit protection is worth

What Tarion does not cover

Where This Comes From

Frequently Asked Questions

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