Ottawa Custom Home Warranties: What’s Covered?

Your New Custom Home Is Protected by Law — Here's Exactly How

When you build a custom home in Ottawa, you're entitled to one of the strongest new-home warranty protections in North America. Under Ontario law, every newly built home must come with a statutory warranty — and that warranty is backed and administered by Tarion, a non-profit corporation created by the Ontario government in 1976.

Understanding exactly what's covered — and equally important, what's not covered — protects you from costly surprises and helps you hold your builder accountable when it matters. This guide explains the full picture, from pre-possession deposit protection through to the 7-year major structural warranty.

At OGC, we believe in full transparency. Our award-winning custom home builders in Ottawa include TARION warranty coverage as required by law, plus OGC's own industry-leading builder warranty that goes further. Get a free quote to learn more.

Who Administers New Home Warranties in Ontario?

Your warranty is legally provided by your builder. Tarion's role is to administer the program, process claims when builder disputes arise, and backstop the coverage if a builder fails to honour their obligations. As of February 2021, builder licensing was transferred to the Home Construction Regulatory Authority (HCRA), which regulates builder conduct and technical competence separately from Tarion.

Think of it this way: your builder is the warranty provider. Tarion is the referee and rulebook. HCRA is the licensing body. All three work together to protect you.

Before signing with any Ottawa custom home builder, confirm they are licensed in the Ontario Builder Directory and that your home will be enrolled with Tarion.

Pre-Possession Protections: Before You Get Your Keys

Tarion coverage begins before a shovel hits the ground. Key pre-possession protections include:

• Deposit Protection: Your deposits are protected against builder insolvency or failure to complete. Coverage limits vary by home type — check Tarion's current limits for freehold new builds.
• Delayed Closing Compensation: If your builder misses a firm occupancy date, you may be entitled to compensation of up to $7,500 under Tarion's delayed closing provisions.

These pre-possession protections are one reason why OGC's commitment to fixed pricing and transparent timelines is so important: a builder who controls costs and schedules reduces the risk of delays and disputes that trigger these provisions.

The Three-Tier Post-Possession Warranty Structure

Once you take possession of your new Ottawa custom home, TARION warranty coverage kicks in across three time-based tiers.

Year 1: Workmanship & Materials

The first-year warranty covers defects in workmanship and materials. This is the broadest tier — if something isn't built right or a material fails in the first year, it's covered. Common Year 1 claims include:

• Exterior cladding, trim, or flashing defects
• Windows and doors that don't seal, open, or close properly
• Interior finishing defects (flooring, drywall, tile, millwork)
• Plumbing, electrical, or HVAC issues caused by improper installation
• Water penetration through the building envelope not caused by homeowner actions
• Violations of Ontario Building Code that were not caught at inspection

Important: To preserve your Year 1 rights, you must submit a Statutory Warranty Form (SWF) to Tarion within the Year 1 window. Tarion's warranty process is paperwork-sensitive — if you miss the filing window, even a valid claim may be unenforceable.

Year 2: Systems & Structure

The second-year warranty narrows to cover defects in the home's major systems and certain structural elements:

• Plumbing systems (not individual fixtures supplied by homeowner)
• Electrical systems
• Heating, ventilation, and air conditioning (HVAC)
• Building envelope — water penetration through the roof, walls, foundation, or windows continues to be covered in Year 2
• Exterior cladding, windows, doors, and roofing for defects causing water penetration
• Ontario Building Code violations not caught in Year 1

Year 2 is especially important for catching problems that only become visible after the home has been through at least one full seasonal cycle — Ottawa's harsh winters and hot summers create significant thermal stress on building materials.

Years 1–7: Major Structural Defects (MSD)

The 7-year Major Structural Defect warranty covers failures in the load-bearing elements of your home that affect its structural integrity or make it unfit for habitation. This includes:

• Foundation failures or significant settlement
• Structural framing defects
• Load-bearing wall failures
• Roof structure failures

MSD claims are the most complex to process and typically require engineering assessments. If you suspect a structural issue, contact Tarion immediately rather than attempting repairs.

Key Warranty Exclusions: What TARION Does NOT Cover

TARION does not cover:

• Normal wear and tear — minor settling cracks, paint scuffs, hardware wear
• Damage caused by the homeowner or their contractors after possession
• Items supplied by the homeowner (e.g. appliances, owner-supplied fixtures)
• Natural settlement and shrinkage that doesn't constitute a defect
• Cosmetic issues that were acknowledged at possession
• Landscaping, driveways, and fencing (unless specifically included in the builder contract)
• Issues caused by improper homeowner maintenance

The line between “normal settling” and a “workmanship defect” is where most warranty disputes arise. This is why building quality matters as much as warranty coverage.

Critical Warranty Timelines: Don't Miss These Deadlines

• 30-Day Form: Submit within 30 days of possession
• Year-End Form: Submit between Day 270 and Day 365 of possession
• Year 2 Form: Submit between Month 21 and Month 24 of possession
• MSD Claims: Any time within the 7-year window

Use Tarion's MyHome portal to track your home's warranty period and submit all forms online.

How to File a TARION Warranty Claim

1. Document everything first. Photograph all deficiencies with timestamps.
2. Contact your builder in writing. Put all requests in writing (email is fine).
3. Submit the appropriate Statutory Warranty Form to Tarion through the MyHome portal within your warranty window.
4. Builder repair period: Once a form is submitted, the builder has a 120-day period to complete repairs.
5. Tarion conciliation: If the builder fails to repair or disputes the claim, Tarion can conduct a conciliation inspection and make a binding determination.

OGC's Warranty: Going Beyond TARION Minimums

TARION sets the legal floor for new home warranty protection in Ontario. OGC goes further. Every custom home OGC builds comes with OGC's own industry-leading builder warranty, which provides additional coverage and accountability beyond the statutory minimums.

More importantly, OGC's commitment to quality construction — fixed pricing, detailed scopes of work, dedicated project managers, premium materials, and rigorous inspections throughout the build — means you're far less likely to face warranty situations in the first place. The best warranty claim is the one you never have to make.

Warranty Transfers: Protection That Stays With the Home

TARION warranty coverage transfers automatically if you sell your home before the warranty period expires — a genuine selling advantage in the resale market.

Ready to Build with Full Warranty Confidence?

Choosing the right Ottawa custom home builder is the single most effective warranty strategy available to you. When you build with OGC, you get TARION warranty protection, OGC's own builder warranty, and the peace of mind that comes from working with a team that builds it right the first time.

• Explore OGC's Custom Home Builders in Ottawa
• Learn about OGC's Design + Build Process
• Use the Ottawa Custom Home Cost Calculator
• Request a Free Quote

Also see: Custom Home Building Mistakes to Avoid in Ottawa | Custom Home Building Checklist Ottawa | How to Get a Building Permit in Ottawa