{"id":901,"slug":"tarion-1-2-7-warranty-detailed-coverage-by-year","title":"Tarion 1-2-7 warranty in full — year-by-year coverage from possession through year 7 (workmanship, building envelope, distribution systems, MSD)","kind":"reference","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team","client-prospect"],"topics":["regulatory-compliance","gc-vertical","tarion-warranty"],"reference_body":"**Claim:** Tarion's statutory warranty runs up to seven years from the date of possession and stays with the home if it is sold. The structure is \"1-2-7\":\n\n**Year 1 (Possession + 1 year):**\n- Defects in work and materials.\n- Unauthorized substitutions for items specified in the APS.\n- Items rendering the home unfit for habitation.\n- Ontario Building Code violations affecting health and safety.\n- Water penetration through basement or foundation walls.\n- Defects causing water penetration through the building envelope (windows, doors, caulking).\n- Defects causing detachment or deterioration of exterior cladding.\n- Defects in electrical, plumbing and HVAC delivery/distribution systems.\n\n**Year 2 (Possession + 2 years):**\n- Water penetration through basement or foundation walls.\n- Defects causing water penetration into the building envelope.\n- Defects causing detachment, displacement or deterioration of exterior cladding.\n- Defects in electrical, plumbing and heating delivery/distribution systems.\n- OBC violations affecting health and safety.\n\n**Years 3-7 (Major Structural Defects only):** See [[tarion-msd-three-test-failure-function-use]] for the three-test framework that defines what counts as an MSD.\n\n**Source:** <https://www.tarion.com/builders-guide-coverage-homes>\n\n**Confidence:** Verified.\n\n**Coverage caps:** See [[tarion-coverage-caps-post-july-2023-400k-300k]] for the dollar limits, which depend on when the Agreement of Purchase and Sale was signed.\n\n**Exclusions:** See [[tarion-warranty-exclusions-s13-2-onhwpa]] for the ONHWPA s. 13(2) list (homeowner alterations, normal wear, ventilation/condensation, etc.).\n\n**Renovation boundary:** Tarion does not cover renovations to existing homes — see [[tarion-renovation-coverage-boundary-no-renovations]].\n\n**Companion:** The Pre-Delivery Inspection ([[tarion-pre-delivery-inspection-pdi-form-mechanics]]) is the regulated handover step that documents pre-possession condition.","rationale_body":"Canonical reference for 1-2-7. Supersedes the earlier one-paragraph stub at [[tarion-1-2-7-pdi-warranty-structure]].","metadata":null,"links":{"outgoing":[{"slug":"tarion-1-2-7-pdi-warranty-structure","title":"Tarion 1-2-7 new-home warranty + Pre-Delivery Inspection — Ontario new-home builders must enroll homes","kind":"reference","scope":"business","link_type":"supersedes"},{"slug":"tarion-msd-three-test-failure-function-use","title":"Major Structural Defect (MSD) — three-test framework (failure / function / use) defines what qualifies for year 3-7 coverage","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"tarion-coverage-caps-post-july-2023-400k-300k","title":"Tarion coverage caps: APS on/after July 1, 2023 — $400K freehold / $300K condo unit / $100K × units common elements to $3.5M cap; $50M project cap","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"tarion-warranty-exclusions-s13-2-onhwpa","title":"Tarion warranty exclusions (ONHWPA s.13(2)) — homeowner alterations, normal wear, dampness/condensation, secondary damage, acts of God","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"tarion-pre-delivery-inspection-pdi-form-mechanics","title":"Pre-Delivery Inspection (PDI) — mandatory pre-possession walkthrough; PDI Form is not a warranty claim but failure to note items makes proof harder","kind":"reference","scope":"business","link_type":"relates-to"}],"incoming":[{"slug":"research-brief-tarion-ontario-may-2026","title":"Research brief: Tarion Warranty Corporation — definitive reference (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"tarion-condo-conversion-rccp-pre-existing-excluded","title":"Residential Condominium Conversion Projects (RCCPs) — Tarion covers post-2018 conversions but pre-existing elements (façade, foundation) excluded from year-1 workmanship","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"rule-builder-site-disclose-tarion-warranty-on-new-home-pages","title":"RULE: Every Candid builder-client site must surface Tarion warranty coverage on every new-home product/landing page, with 1-2-7 structure named and CSS forms referenced","kind":"rule","scope":"business","link_type":"depends-on"}]},"created_at":"2026-05-24T14:19:39.432Z","updated_at":"2026-05-24T14:19:39.432Z"}