Newly constructed freehold homes receive one, two and seven year warranty protection. However, freehold homes are not covered under warranty if they are built on existing footings or foundations. Additionally, homes that have been lived in or rented by the builder before they are sold are not covered under warranty.

Note: If you buy a resale home that is less than seven years old, and was originally covered under warranty, you are entitled to the remaining warranty coverage.

If a home is a condominium unit, the owner is required to pay a monthly fee for the upkeep of the common elements. Common elements are the areas shared by residents, such as lobbies, parking garages, and recreational facilities such as pools and gyms. These spaces are looked after by the condominium corporation. Condominium projects can include high-rise buildings, low-rise buildings, townhouses, semi-detached homes and detached homes.

Generally, when you buy a new condominium, your warranty covers both your unit (the home you purchase) and the common elements. Warranty coverage for common elements takes effect when the condominium is registered as a corporation. Warranty coverage for a unit will begin on the date you move in and take occupancy of your home.

There are, however, new types of condominiums available, and warranty coverage is not the same for all types. For example, for "common elements condominiums" and "vacant land condominiums", there is no coverage for the common elements. You should check with your condominium lawyer if you are not sure about what the warranty will cover.

If your condominium is not brand new, the warranty coverage you receive may be limited. For example, if you purchase a unit in a building that has been registered for more than one year, parts of the common elements coverage may have expired. If the unit you are considering has been previously leased or rented out by the builder, it will not be covered under warranty.

However, if you purchase a unit from a previous owner, and the unit was originally covered under warranty, you are entitled to the remaining warranty coverage on that unit and on the common elements.

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 a completely "new" dwellings, they are not covered by warranty under the Ontario New Home Warranties Plan Act.