Tarion 1-2-7 warranty in full — year-by-year coverage from possession through year 7 (workmanship, building envelope, distribution systems, MSD)

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":

Year 1 (Possession + 1 year):

• Defects in work and materials.
• Unauthorized substitutions for items specified in the APS.
• Items rendering the home unfit for habitation.
• Ontario Building Code violations affecting health and safety.
• Water penetration through basement or foundation walls.
• Defects causing water penetration through the building envelope (windows, doors, caulking).
• Defects causing detachment or deterioration of exterior cladding.
• Defects in electrical, plumbing and HVAC delivery/distribution systems.

Year 2 (Possession + 2 years):

• Water penetration through basement or foundation walls.
• Defects causing water penetration into the building envelope.
• Defects causing detachment, displacement or deterioration of exterior cladding.
• Defects in electrical, plumbing and heating delivery/distribution systems.
• OBC violations affecting health and safety.

Years 3-7 (Major Structural Defects only): See Major Structural Defect (MSD) — three-test framework (failure / function / use) defines what qualifies for year 3-7 coverage for the three-test framework that defines what counts as an MSD.

Source: https://www.tarion.com/builders-guide-coverage-homes

Confidence: Verified.

Coverage caps: See 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 for the dollar limits, which depend on when the Agreement of Purchase and Sale was signed.

Exclusions: See Tarion warranty exclusions (ONHWPA s.13(2)) — homeowner alterations, normal wear, dampness/condensation, secondary damage, acts of God for the ONHWPA s. 13(2) list (homeowner alterations, normal wear, ventilation/condensation, etc.).

Renovation boundary: Tarion does not cover renovations to existing homes — see Tarion coverage boundary — covers new homes, contract homes, RCCPs; does NOT cover renovations to existing homes or owner-built homes.

Companion: The Pre-Delivery Inspection (Pre-Delivery Inspection (PDI) — mandatory pre-possession walkthrough; PDI Form is not a warranty claim but failure to note items makes proof harder) is the regulated handover step that documents pre-possession condition.