When you purchase a newly constructed home from a builder you are covered by TARION (formerly, ONHWP - Ontario New Home Warranty Plan). 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.

All homes enrolled in the Warranty Program after December 31, 1990, the warranty covers:

	all defects in materials and construction for a period of one year after the date of possession.
	Basement leakage and Ontario Building Code violations with respect to safety and health for a period of two years.
	Major structural defects for seven years following completion for possession.

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.

Prior to closing you will attend at the property with a representative of the builder to complete a pre-delivery inspection (PDI) of the house. If is important that the inspection be done carefully and all apparent defects or omissions be listed on the certificate of completion. A copy of the PDI must be provide to your Lawyer prior to closing.

Often the builders Agreement of Purchase and Sale provides that the cost of enrolling the house under TARION be added to the purchase price as an adjustment on closing. The enrolment fee will vary depending on the purchase price of the house.

TARION publishes a list of enrolled builders in Ontario and a rating based on their history of compliants.

For further information http://www.tarion.com