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Warranty Overview

The statutory warranties on work and materials that you provide on the home take effect on the Date of Possession and last for a total of seven years. The Date of Possession is the closing date or, in the case of a condominium unit, the occupancy date/interim occupancy date. 

The statutory warranties are divided into the three timeframes outlined below. 

One-Year Warranty

  • Requires that the home is constructed in a workmanlike manner and free from defects in materials
  • Protects against unauthorized substitutions of items of construction or finishing that are referred to, or selected by the purchaser, in the purchase agreement
  • Ensures that the home is fit for habitation 
  • Protects against Ontario Building Code violations

Two-Year Warranty

  • Protects against water penetration through the basement or foundation 
  • Protects against defects in materials, including windows, doors and caulking, or defects in work that result in water penetration into the building envelope 
  • Covers defects in work or materials in the electrical, plumbing, and heating delivery and distribution systems 
  • Covers defects in work or materials that result in the detachment, displacement, or deterioration of exterior cladding (such as brick work, aluminum, or vinyl siding) 
  • Protects against Ontario Building Code violations that affect health and safety, including but not limited to fire safety, insulation, air and vapour barriers, ventilation, heating, and structural adequacy

Seven-Year Warranty

Provides coverage against major structural defects. These include:

  • Defects in work or materials that affect a structural loadbearing element of the home, resulting in an actual structural failure
  • Defects in work or materials that materially compromise a structural loadbearing element of the home, even if failure has not occurred or is not imminent
  • Defects in work or materials that materially and adversely affect the use of a significant portion of the home

Condominium Common Elements

For most condominiums, the common elements have the above warranty coverage. The condominium corporation is entitled to submit warranty claims for defects in work or materials in the common elements. There is no warranty coverage for the common elements of either a common elements condominium or vacant land condominium.
Common elements warranty coverage begins on the date the condominium corporation is registered. 

Coverage Limits

For all purchase agreements or construction contracts signed on or after February 1, 2021, these new warranty limits are in place:

  • The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
  • The maximum coverage for condominium common elements is $100,000 multiplied by the number of units, up to a maximum of $3.5 million.
  • The maximum combined coverage for a condominium project (units and common elements) is $50 million.
  • There is a maximum of $50,000 for warranted damage caused by environmentally harmful substances or hazards, including mould, for freehold homes and condominium units.

For all purchase agreements or construction contracts signed before February 1, 2021, these warranty limits remain:

  • The maximum statutory warranty coverage available for freehold homes and condominium units is $300,000.
  • The maximum coverage for condominium common elements is $50,000 times the number of units, up to a maximum of $2.5 million.
  • The maximum combined coverage for a condominium project (units and common elements) is $50 million.
  • There is a maximum of $15,000 for warranted damage caused by environmentally harmful substances or hazards, including mould, and a maximum of $25,000 for coverage of septic systems.
  

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