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

Claim: What Tarion covers:

• Newly constructed homes by HCRA-licensed builders.
• Contract homes — owner-land, contracted to a licensed builder; same 1-2-7 structure plus $40K financial-loss coverage (Tarion deposit protection — freehold: $60K (≤$600K homes) or 10% to $100K (>$600K); contract homes: $40K financial-loss coverage).
• Custom cottages and seasonal homes meeting the OBC for occupancy and built by a licensed builder.
• Residential Condominium Conversion Projects (RCCPs) post-Jan 1, 2018 — with pre-existing elements excluded from year-1 workmanship (Residential Condominium Conversion Projects (RCCPs) — Tarion covers post-2018 conversions but pre-existing elements (façade, foundation) excluded from year-1 workmanship).

What Tarion does NOT cover:

• Renovations to existing homes — full stop. Even substantial renovations are outside the ONHWPA.
• Owner-built homes intended for personal occupation. The owner-built exemption has long been criticized by Cunningham and CPBH as a loophole.
• Substantial renovations sold as "new" — case-by-case. Cohen LLP notes Tarion warranty cannot be bought for "houses re-built upon existing foundations (substantial renovation)" but Tarion has investigated cases where sellers misrepresented status. Whether the renovator meets the statutory definition of "builder" is fact-dependent (Miller Thomson analysis turns on degree of control).

Sources:

• Cohen LLP commentary on substantial-renovation boundary.
• Miller Thomson analysis of "builder" definition.
• Tarion [email protected] (canonical edge-case channel).

Confidence: Verified.

For renovation client marketing: Be explicit that renovations are not Tarion-covered. Don't imply otherwise. Buyers comparing "new build vs. major reno" will appreciate the honesty — and your sales team won't have to walk back implied promises later.

Companion: RenoMark certification — CHBA private-sector renovation program; minimum 2-year written workmanship warranty, liability insurance, written contract, code of conduct covers the practical alternative — RenoMark + in-house workmanship warranty.