TARION is a private company, whose purpose is to protect new home buyers and regulate builders. The warranty program covers a wide range of scenarios, the following are a few points that I feel are most important for end users.
1. Deposit Protection
If you sign an Agreement of Purchase and Sale for a new property (house or condo), and paid a deposit, in case the builder files for bankrupcy, or breaches the contract your deposit is protected by Tarion up to $20,000 for a condo, and $40,000 for other new homes.
2. One Year Warranty
Requires a home is constructed in a workman-like manner and free from defects in material. Protects against unauthorized substitutions. Requires the home to be fit for habitation. Protects against Ontario Building Code violations.
3. Two Year Warranty
Protects against water penetration through the basement or foundation walls;
Protects against defects in materials that affect windows, doors and caulking and defects in work that results in water penetration into the building envelope; Covers defects in work or materials in the electrical, plumbing and heating delivery and distribution systems, detachment, displacement or deterioration of exterior cladding (such as brickwork, aluminum or vinyl siding);
Protects against violations of the Ontario Building Code that affect health and safety.
4. Seven Year Warranty
The Seven year warranty covers major structural defects, such as failure of a structural load-bearing element.
For more details about New Home Warranty, please visit the Tarion website.