Condominium Conversions

When shopping for a condominium, you may find projects referred to as “condo conversions”.  A conversion is an existing building, usually a commercial office building, which has been transformed into condominium units.  Because conversion projects are not completely “new” dwellings, they are not covered by the statutory warranty.

Common Element Condominium

Typically, this is a set of common elements (organized as a condominium) that benefits surrounding freehold homes (sometimes called “parcels of tied land” or “POTLs”).  The adjacent or benefitted home will typically have statutory warranty coverage but the common elements do not.

Vacant Land Condominium

This is a condominium ownership structure of vacant land.  As such, statutory warranties intended for a home would generally not apply.  However, it is possible that the statutory warranty will apply if the vendor/builder sells to the purchaser not only the unit of vacant land, but also a finished home to be built on the land.

Previously Occupied Homes

The statutory warranties apply to new homes and accordingly, do not apply to dwellings that have been  occupied by the vendor/builder or rented out by the vendor/builder and occupied by other persons before being sold to a purchaser.

Owner Built Homes

An owner built home is a home where the landowner owns the lot, and the landowner rather than a contractor: (1) exercises significant control over the construction of a new dwelling, and/or (2) is responsible for contributing one or more essential elements to it. Exercising control over the construction includes entering into contracts directly with subcontractors. Essential elements include footings/foundation, framing, exterior cladding, building envelope, heating, electrical and plumbing distribution systems. Owner built homes are not covered under the statutory warranty.

Homes Built on Existing Foundations

A foundation is defined as an arrangement of various “foundation units” through which the loads from a building are transferred to supporting soil or rock.  A “foundation unit” refers to any one of the structural parts of a permanent foundation, such as footings, foundation walls, block, piers and pier type foundations constructed of cement products such as concrete, concrete block, wood or any other approved material. 

A foundation does not include non-load bearing partition walls, weeping tiles, damp proofing, waterproofing, and parging or encompass load bearing structures that form part of the above ground construction such as columns, beams, posts and above ground load bearing walls. 

If part of the foundation of a home is pre-existing and that foundation does not exceed 40% of the footings as determined by linear measurement (footprint), the home will have statutory warranty coverage; otherwise, it will not.

Homes Sold by Resellers

A homeowner who does not occupy a new home and sells it to another homeowner is deemed to be a vendor under the Ontario New Home Warranties Plan Act and must register with Tarion as a Vendor. The new homeowner will be entitled to any statutory warranty coverage that remains based on the original purchaser’s date of possession.

As-Built Homes

An as-built home is a home constructed by a builder and sold to a purchaser in an “as-is” condition. A builder cannot sell the entire home “as is” to avoid statutory warranty coverage.  However, purchasers can accept existing surface defects in an as is condition and there will be no statutory warranty coverage for those items.  The agreement must list the specific items to clearly demonstrate that the purchaser is aware of them and accepts them as is.

Modular Homes

A modular home is a complete home composed of finished sections built off-site. Statutory warranty coverage applies to the home if the assembled sections are placed on a permanent foundation that meets Part 9 of the Ontario Building Code and was installed by the same builder that sold the home to the purchaser.

Model Homes

A model home is a home constructed by a builder either for showcasing the details of homes available for purchase by a builder or for business purposes (i.e. used as a sales office). Statutory warranty coverage applies to model homes except for existing surface defects which have been accepted by the purchaser in the purchase agreement. However, purchasers can accept existing surface defects in an as is condition and there will be no statutory warranty coverage for those items.  The agreement must list the specific items to clearly demonstrate that the purchaser is aware of them and accepts them as is.

Mobile Homes

A mobile home is a transportable, single or multi-section self-contained home built off-site. Statutory warranty coverage applies if the mobile home is placed on a permanent foundation that meets Part 9 of the Ontario Building Code and was installed by the same builder that sold the home to the purchaser.

Seasonal Homes

A seasonal home is a home that does not meet the requirements of Part 9 of the Ontario Building Code and is therefore not built for year-round occupancy.  Other considerations, such as seasonal use of the home or lack of year-round access, do not determine whether a home is seasonal for the purposes of the Ontario New Home Warranties Plan Act.  Seasonal homes are excluded from statutory warranty coverage.

Log Homes

Log homes are built with logs, which form an integral part of the structure and the building envelope. A log home is covered under the statutory warranty as long as it has been constructed in accordance with Part 9 of the Ontario Building Code.

Panelized (Kit) Homes

A panel or “kit” home is a self contained home assembled on-site using factory built finished components. Statutory warranty coverage applies if the panel home is placed on a permanent foundation that meets Part 9 of the Ontario Building Code and was installed by the same builder that sold the home to the purchaser.

Shell Homes

A shell home is a home in which the builder completes the “shell” but does not finish the interior elements. For freehold and low-rise condominiums, the “shell” includes the essential elements (footings/foundation, framing, exterior cladding, building envelope, heating, electrical and plumbing distribution systems) and installation of the drywall.  For high-rise condominiums, the “shell” includes the essential elements and installation of the drywall on the exterior walls only; the builder is not required to install drywall on the interior walls. Statutory warranty coverage applies to the work completed by the builder.

If you have questions as to whether the type of home you are looking at is eligible for warranty coverage, please e-mail us at the address below:



With your e-mail, please include the following: a copy of your Contract/Agreement of Purchase and Sale; the builder's name; the homeowner/purchaser's name; and the municipal address of the home.