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Homes Eligible for Warranty Coverage

As a general rule, newly constructed homes sold and built in Ontario are eligible for statutory warranty coverage under the Ontario New Home Warranties Plan Act (ONHWP Act). The vendor of the home is responsible for the warranties. Tarion acts as a backstop if the vendor fails to honour the warranties. 

A new home is eligible for warranty coverage if four criteria under the ONHWP Act are met. There must be a “home”, “vendor”, “builder”, and “owner” as defined under the ONHWP Act.

The information below addresses these common definitions and includes links to the “Common Definition Advisories” published on the website of the Home Construction Regulatory Authority (HCRA). The Common Definition Advisories apply to both the ONHWP Act administered by Tarion, and the New Home Construction Licensing Act administered by HCRA. The advisories provide examples of how these definitions apply in various circumstances.

Home

Guidance on the types of dwellings that meet the definition of “home” can be found here.

Vendor

Guidance on determining who the “vendor” of a home is, or if there is a “vendor” of a home, can be found here. A builder of a contract home is deemed to be a vendor. Identifying the vendor is important because the vendor is responsible for honouring the statutory warranties and protections owed to the purchaser / owner of the new home.  

Builder 

A builder is the person who generally speaking undertakes to construct the home in question. Guidance on whether the person building all or part of the home meets the definition of “builder” can be found here.

Owner 

An owner is the person who generally speaking receives the transfer of land and dwelling, or who enters into a construction contract with a builder to construct a home on their land. Guidance on whether the person receiving the home fits within the definition of “owner” can be found here.

  

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