Before you sign with any builder in Ontario, including us, there are a few minutes of homework worth doing. Two organizations protect new-home buyers here: the Home Construction Regulatory Authority (HCRA), which licenses builders, and Tarion, which backs your warranty. Knowing what each one does tells you exactly what to check.
A bit of background: until 2021, Tarion did both jobs. On February 1, 2021, the HCRA took over licensing and regulating builders under the New Home Construction Licensing Act, 2017, and Tarion focused on warranties, buyer protections and resolving disputes.
Step 1: Look the builder up
Every builder and vendor of new homes in Ontario must be licensed by the HCRA, which means showing competency, financial responsibility and integrity. The HCRA's own advice is blunt: no licence, no deal.
The free Ontario Builder Directory shows a builder's licence status and how long they've been active, how many homes they've built, any regulatory action, court charges or Registrar and Discipline Committee decisions, and warranty claim history from Tarion. If a builder isn't listed, the HCRA says they may be operating illegally.
Since July 1, 2021, licensed builders also follow a Code of Ethics covering honesty, fair dealing, disclosure and advertising, with zero tolerance for harassment, discrimination and bullying. Breaches can lead to anything from training to fines, licence conditions, suspension or revocation, and buyers can file complaints with the HCRA.
Step 2: Register your purchase with Tarion within 45 days
This one is new, and easy to miss. For freehold agreements signed on or after April 1, 2026, you need to notify Tarion of your purchase within 45 days of signing, using its free online tool. Tarion says buyers who miss the deadline may have their deposit compensation limited to a separate, capped annual fund, starting January 1, 2027. It takes a few minutes. Do it the week you sign.
Step 3: Know what's protected before you move in
Your deposit. If you become entitled to your deposit back, for example because a builder can't finish the home, Tarion protects up to $60,000 on freehold homes priced at $600,000 or less, and 10% of the price up to $100,000 above that.
Your closing date. Your agreement includes a Tarion addendum setting out closing dates. If a builder misses a firm closing date, you may be entitled to $150 a day for living expenses like meals and accommodation, plus other receipted costs, up to $7,500 in total. Unavoidable delays, such as strikes or other extraordinary events, are an exception.
Your walkthrough. Before you get the keys, the builder takes you through the home for a pre-delivery inspection (PDI). Anything incomplete, damaged, missing or not working goes on the PDI form, which becomes the official record of the home's condition. Can't be there? You can send someone in your place with written authority.
Step 4: Understand your warranty
Coverage starts on the day you take possession and stays with the home if it's sold.
| Coverage | What it covers |
|---|---|
| 1 year | Defects in work and materials, Ontario Building Code violations, unauthorized substitutions, and the home must be fit to live in |
| 2 years | Water getting in through the basement or foundation walls, defects that cause exterior cladding to detach or deteriorate, and defects in electrical, plumbing and heating delivery and distribution systems |
| 7 years | Major structural defects that seriously affect the structure or significantly affect the use of the home |
You can also use the Builder Directory to check whether a home under seven years old still has warranty coverage, which is handy if you ever buy a resale.
A note for out-of-town investors
If you can't visit often during construction, these protections do a lot of the work for you: a licensed builder held to a Code of Ethics, defined protection for your deposit and closing date, and a warranty that stays in place for its coverage period no matter who's living in the home. For a rental, our professional property management partners can handle the day-to-day.
So go ahead: look us up on the Ontario Builder Directory. Then give us a call, and we'll walk you through our homes, our warranty process and what to expect at your PDI.
Please note: This article is general information only, current as of September 27, 2026. It is not legal, tax or financial advice, and program rules can change. Coverage amounts and requirements are set by Tarion and the HCRA and are subject to change. Always refer to the Tarion addendum in your own agreement. Please speak with a qualified lawyer, accountant or tax adviser about your own situation.