Quick Answer Box: In Ontario, a Tarion warranty is transferable to a new owner but does not transfer automatically. Buyers must notify Tarion, submit the Agreement of Purchase and Sale and transfer deed, then register for Tarion MyHome to activate ongoing warranty coverage. Coverage remains only for the time left from the original possession.
What Is Tarion Warranty Transfer in Ontario?
A Tarion warranty transfer in Ontario refers to moving remaining new home warranty coverage, managed by Tarion Warranty Corporation, from the seller to the buyer when a property is resold. This process ensures continued protection for the new owner against eligible construction defects, as long as the transfer steps are properly followed.
How Does Tarion Warranty Coverage Work in Ontario?
Tarion warranty coverage provides crucial protection for new homes and condos across Ontario, shielding buyers from costly repairs related to building code violations and defects. The program follows a tiered approach:
For the first year, all defects in workmanship and Ontario Building Code infractions are covered. In the second year, significant systems plumbing, heating, electrical, and water penetration are included. For seven years, the warranty safeguards against major structural issues. Tarion warranty coverage has maximum limits: homes are typically covered up to $300,000 to $400,000, and condominium common elements may reach $2.5–$3.5 million. As of 2023, deposit protection has increased to $100,000, helping buyers secure their investments when purchasing new.
Some exclusions apply. Unregistered or owner-built homes, illegal builds, and non-covered renovations are excluded. The builder pays a Tarion enrollment fee usually between $385 and $1,500 which is bundled into the home’s sale price. To confirm specific coverage and exclusions, consult the official Tarion website and review details relevant to your property. For insights on excluded items, visit tarion warranty coverage exclusions in Ontario.
Is the Tarion Warranty Transferable to a New Owner?
The Tarion warranty is designed as a transferable warranty that follows the property, not the individual owner, in Ontario. However, the transfer is not automatic. New buyers must notify Tarion after closing the purchase, supplying key documents such as the Agreement of Purchase and Sale and the transfer deed. Only then will Tarion update its records, enabling the new owner to access remaining warranty protection, submit a warranty claim, and use the Tarion MyHome portal.
A common error is assuming lawyers or agents handle everything. The onus rests with the buyer, and neglecting paperwork can forfeit entitlement to coverage. The warranty period never resets; coverage is tied to the original possession date. For example, if three years have elapsed, only four years of major structural coverage remain for the new owner.
How to Transfer a Tarion Warranty After a Home Purchase
- Confirm Tarion Warranty Enrollment
Ensure the home is enrolled in the Tarion warranty program. Use Tarion’s home registration lookup or ask your builder for verification before proceeding. - Collect Required Documentation
Obtain your signed Agreement of Purchase and Sale and the transfer deed received during closing. These documents prove your legal ownership for the transfer. - Contact Tarion
Reach out to Tarion Warranty Corporation via email or through the Tarion official contact page. State that you are the new homeowner requesting a warranty transfer. - Submit Documentation
Provide copies of your Agreement of Purchase and Sale and the transfer deed as instructed by Tarion. Digital scans or clear photographs are usually sufficient. - Await Ownership Verification
Tarion will review your submission, verify your ownership, and update your records. This process may take several business days. - Register for Tarion MyHome
Once recognized as the new owner, create or update your Tarion MyHome account using your property address. - Manage Your Warranty Coverage and Claims
Log in to Tarion MyHome to monitor coverage periods, initiate or continue warranty claims, and set reminders for important deadlines.
Handling Existing Warranty Claims and Deadlines
If there are existing open warranty claims on your new property, contact Tarion through MyHome to ensure you are added as the current claimant. Notify Tarion of your purchase as soon as possible; some recent policies require notification within 45 days after closing. When in doubt, consult the Ontario Builder Directory or Tarion home lookup tool to verify eligibility.
Using Tarion MyHome for Warranty Claims and Management
Tarion MyHome is the digital platform through which nearly all Ontario homeowners process warranty claims and manage their coverage. This portal allows you to file new claims, track the status of ongoing claims whether you opened them or inherited them and upload supporting documents such as home inspection results or photographs of defects.
Additional features include automated claim window reminders, up to date access to your warranty timeline, and direct communication from Tarion. Prompt registration for Tarion MyHome after the ownership transfer ensures you do not miss claim deadlines and can participate in any open claims started by the previous owner.
If navigating MyHome or transferring details from a prior owner, consult Tarion support for help or check out the step-by-step guide to filing a Tarion warranty claim in Ontario.
Tarion Warranty vs Other Home Warranty Options
| Warranty Provider | Coverage (Years) | Max Payout | Transferable? | Coverage Area (Sample) | Enrollment Fee |
|---|---|---|---|---|---|
| Tarion Warranty (Ontario, statutory) | 1, 2, 7 (tiered) | $300k–$400k home,<br>$2.5M–$3.5M condo | Yes (not automatic) | Structural, code defects, deposits | $385–$1,500 (included) |
| Private Home Warranty (varies) | 1–5 | $10k–$50k | Some/Limited | Appliances, select systems | $400–$1,200/year |
| Home Insurance (not a warranty) | Policy term | Policy limit | N/A | Fire, theft, liability | $600–$2,500/year |
| Builder’s Personal Guarantee | 1–2 (not standardized) | Varies | No | Workmanship, cosmetic fixes | Usually free/included |
Tarion warranty stands apart as Ontario’s only statutory transferable warranty program, covering structural and significant building defects. Unlike private warranty products or builder guarantees, Tarion’s broader coverage and higher payout limits are protected by provincial law.
Tarion Warranty Period for Resale Homes
A critical difference between Tarion and private policies is the warranty period for resale homes. While private warranties may not transfer at all, Tarion warranty coverage will transfer so long as the steps above are followed, but coverage persists only for the time left from the original possession. For an in-depth look at timing, see our guide on the Tarion warranty period for resale Ontario homes.
The Role of HCRA Ontario and Its Difference from Tarion
The Home Construction Regulatory Authority (HCRA Ontario) is the provincial body responsible for licensing and overseeing home builders and vendors. It maintains the Ontario Builder Directory, ensuring only qualified professionals operate in the industry and handling complaints or disciplinary action related to builder conduct.
Tarion Warranty Corporation, on the other hand, exclusively manages the new home warranty program, which covers defect claims, eligibility, and the administration of coverage as outlined by the Ontario New Home Warranties Plan Act. When dealing with builder licensing or complaints about business practices, homebuyers should contact HCRA Ontario. For any concern regarding a warranty claim or coverage under the Tarion program, Tarion is the appropriate contact. These roles are distinct but complementary, ensuring comprehensive consumer protection for new homebuyers.
Tarion Enrollment Fee
An often-overlooked cost in new home buying is the Tarion enrollment fee. This fee, usually between $385 and $1,500 depending on the home, is paid by the builder and is factored into the final price. The enrollment ensures your eligibility for the Tarion warranty program and its protections, so be sure to confirm the fee is included when purchasing a new or newly built resale property. For breakdowns on closing costs and Tarion fees, reference our Planning & Financial Guidance section.
Common Mistakes When Transferring or Using a Tarion Warranty
Failing to properly transfer your Tarion warranty in Ontario is a major risk for new homebuyers. Many assume their lawyer or real estate agent will notify Tarion, but this step is the buyer’s direct responsibility. Overlooking this can result in lost warranty coverage.
Other frequent errors include:
- Not checking whether the home is enrolled in Tarion warranty coverage; some older homes or owner-built properties are ineligible.
- Waiting too long to contact Tarion, which can forfeit both minor and major defect claims due to strict timelines.
- Failing to set up a Tarion MyHome account and missing key deadlines for submitting or continuing warranty claims.
- Believing the transferable warranty restarts upon purchase, rather than carrying only the balance from the original possession date.
- Neglecting to connect with Tarion or the prior owner to update or continue unresolved warranty claims.
Avoid these pitfalls by reviewing all closing documents, acting on transfer tasks quickly, and consulting Tarion for clarification. For more homeownership maintenance advice, read our guide on Long-Term Home Care.
FAQ’s
1. Is the warranty transfer automatic?
No, Tarion warranty transfer in Ontario is not automatic. The new owner must notify Tarion directly, provide the Agreement of Purchase and Sale and the transfer deed, and then register for a Tarion MyHome account to ensure continued coverage and rights.
2. What documents are needed to transfer the Tarion warranty?
To transfer a Tarion warranty, you must provide your signed Agreement of Purchase and Sale and the transfer deed verifying you as the registered new owner. If additional confirmation is required, Tarion may request further paperwork related to your transaction.
3. Can I start or continue a warranty claim if the previous owner started one?
Yes, any open warranty claim attaches to the home, not just the person. As the new owner, you inherit all ongoing claims and should update Tarion via MyHome to add details, follow up, or receive further guidance on next steps.
4. How do I check if my home is still under Tarion warranty?
You can use the Tarion home lookup tool or access your Tarion MyHome account to verify coverage dates and status. Alternatively, inquire with your real estate lawyer, the previous owner, or Tarion directly to confirm eligibility and ensure your home is registered.
5. Does a home inspection affect my Tarion warranty?
A standard home inspection has no impact on Tarion warranty eligibility. However, scheduling a home inspection before acquisition or immediately after closing can help identify outstanding defects that may still be covered. Promptly reporting any issues within warranty claim windows improves your likelihood of successful claims.
Conclusion
A Tarion warranty transfer in Ontario is vital for protecting your investment in a newly built or recently resold home. While the warranty is transferable, activation requires prompt action by the buyer contacting Tarion, providing proof of purchase, and registering with Tarion MyHome. Only the remaining warranty period from the original possession transfers. For full official guidance, refer to Tarion’s website, and explore our Services for personalized help in safeguarding your homeownership journey.
