Buying a New Home or Condo from a Builder in Ontario? A Simple Guide to PDI, Occupancy & Tarion

Buying a brand-new condo is exciting, but it also comes with steps and terms that may feel unfamiliar. One name you’ll hear often is TARION!

What is TARION?

Tarion is Ontario’s new home warranty program. It protects buyers of new homes and condos by making sure builders follow through on their obligations. Tarion covers your deposit, protects you if your closing or occupancy is delayed, and provides warranty coverage on your condo for up to seven years.

Think of Tarion as a safety net for your new condo purchase. With Tarion in place, your investment is much safer, but you still need to know what steps to take.

Buying a Builder New Home or Condo

Here are the series of events following a new home or condo purchase from a Tarion-registered builder:

1. Pre-Delivery Inspection (PDI)
2. Interim Occupancy or Possession
3. Final closing or completion following condo registration
4. Post-occupancy warranty period & claims

Simple guide from Team Kalia for Builder New Home or Condo Buyers

Step 1: Pre-Delivery Inspection (PDI)

Before you move in, you’ll walk through the condo with the builder.

Check for scratches, leaks, or unfinished work.

Record everything on the PDI form and take photos.

Sign the Certificate of Completion and Possession (CCP) also known as Warranty Certificate, which includes Tarion enrollment number.

Register your new home or condo on Tarion MyHome Portal

The Certificate of Completion and Possession (CCP) also known as Warranty Certificate is an important document which confirms your official occupancy possession date and the Tarion enrolment number. You will need it to register and log into Tarion MyHome portal, to submit and track claims.

Tip: Don’t rush Pre-delivery Inspection (PDI), it’s your chance to document and report problems. 

Step 2: Interim Occupancy

You get the keys and may move in, but the condo isn’t legally yours yet.

You’ll pay monthly interim occupancy fees (similar to rent). These cover interest, estimated taxes, and condo fees.

Tip: Track and report any new issues you notice during this time.

Step 3: Final Closing (Condo Registration)

The condo building is officially registered with the city.

You become the legal owner, your mortgage starts, and you pay property taxes and condo fees.

Step 4: Tarion Warranty Coverage

Your Tarion warranty includes:

• Deposit Protection up to $20,000*.
• Delay Compensation – up to $7,500* if occupancy is late.
• 1-Year Warranty – workmanship & materials.
• 2-Year Warranty – plumbing, heating, electrical, water leaks, safety issues.
• 7-Year Warranty – major structural defects.

Tip: Submit claims on Tarion MyHome Portal right away and track progress.

Step 5: Don’t Miss Warranty Deadlines

30-Day Form – list issues in your first month.

Year-End Form – list issues before the 1-year mark.

2-Year Form – covers plumbing, electrical, and water penetration issues.

Major Structural Defect (MSD) Form – valid years 3–7

Tarion Claim Forms & Timelines

Tip: Set phone reminders so you don’t miss these windows.

Why All This Matters

• Tarion is your safety net, without it, your investment is at risk.
• Reporting issues on time means you won’t pay for repairs out of pocket.
• Acting early protects your condo’s resale value and keeps tenants happy if you rent it out.

FAQs About Buying a New Builder Homes & Tarion

Who Pays for Tarion?

Builders in Ontario are legally required to register with Tarion and enrol every new home or condo unit before selling it.

Builders pay enrolment and registration fees (sometimes called the warranty insurance premium) to Tarion for each home or condo. These fees fund the warranty program.

Do Homeowners Pay Anything to Tarion?

Directly: Homeowners don’t pay Tarion directly. The builder is responsible for the enrolment fee.

Indirectly: Many builders pass this one-time enrolment fee (insurance premium) on to buyers as a closing adjustment. It usually ranges from hundreds to over $1,000, depending on the home or condo price. Check your Agreement of Purchase and Sale (APS) to confirm.

Conciliation Fee: If you file a warranty claim and the builder doesn’t resolve it, Tarion may charge a conciliation fee (~$282 + HST) to investigate. If Tarion rules in your favour, this fee is refunded.

Key Takeaway for Buyers

• The Tarion warranty itself isn’t an “extra” cost, builders must provide it by law.
• However, you may still see the enrolment fee or insurance premium on your closing statement if the builder passes it to you.
• The only other potential out-of-pocket cost is the conciliation fee, which is rare and refundable if your claim is valid.

What is a Certificate of Completion and Possession (CCP) or Warranty Certificate?

A Certificate of Completion and Possession (CCP) also called the Warranty Certificate is submitted by builder to TARION, and a copy is provided to buyer.

• Builder’s Role: On the day you take possession (your PDI or occupancy date), the builder issues and signs the CCP – Warranty Certificate. They are responsible for submitting it to Tarion.

• Homeowner’s Role: You receive a copy. This document confirms your official occupancy and possession date and the Tarion enrolment number.

• Why It Matters: That date starts your statutory warranty periods (1-year, 2-year, and 7-year coverage). It’s also the date Tarion records in your MyHome account so you can submit warranty forms online.

What happens if I miss a Tarion warranty deadline?

If you miss the 30-day, 1-year, or 2-year reporting window, you may lose the right to have those issues covered under warranty. Always set reminders.

What’s not covered under Tarion?

• Normal wear and tear (scratches, dents, paint touch-ups).
• Damage caused by homeowners or tenants.
• Appliances (unless separately warranted).
• Landscaping or items outside your condo unit.

Does Tarion coverage transfer if I sell my condo?

Yes. The warranty stays with the unit for the full 7 years, which helps with resale value.

How much protection does Tarion provide?

• Deposit protection up to $20,000 for condos*.
• Delay compensation up to $7,500*.
• Condo unit warranty coverage up to $300,000*.
• Coverage lasts up to 7 years from occupancy.

Note: *Visit Tarion site to ensure most up-to-date information on coverage.

Why should I register on the Tarion MyHome portal?

Because it’s the official way to file claims, track deadlines, and communicate with Tarion. It’s free and quick to set up.

What should I bring to my Pre-Delivery Inspection (PDI)?

• Tarion’s official PDI checklist.
• A phone or camera to take photos.
• A notepad or friend or inspector to help spot issues.

Pro Tip: Keep a folder labelled “Tarion Warranty” (digital + paper) with all forms, emails, receipts, and photos.

New Builder Home or Condo Buyer Checklist

Stage 1: Before Signing APS

• Confirm builder is Tarion-registered
• Verify home or condo unit is Tarion-enrolled
• Review Critical Dates Addendum
• Clarify deposit structure & upgrades
• Keep APS & addenda safely stored

 Stage 2: During Construction

• Track builder updates & progress
• Save upgrade receipts
• Monitor amendments or delays
• Know your deposit is Tarion protected

 Stage 3: Pre-Delivery Inspection (PDI)

• Attend PDI with builder
• Bring Tarion PDI Checklist
• Inspect finishes, windows, plumbing, electrical
• Photograph or video record all deficiencies
• Note “Unable to Inspect” where applicable
• Sign PDI Form + Certificate of Completion & Possession

 Stage 4: Interim Occupancy

• Receive Occupancy Permit
• Pay interim occupancy fees (interest, taxes, condo fees)
• Register on Tarion MyHome portal
• Report deficiencies promptly

 Stage 5: Final Closing

• Condo plan registered
• Title transfers → full legal ownership
• Interim fees end; start mortgage & condo fees
• Common Elements Warranty begins

 Stage 6: Warranty Deadlines

• 30-Day Form → submit within first 30 days
• Year-End Form → submit before 1-year mark
• Second-Year Form → submit during Year 2
• MSD Form → Years 3–7 for structural issues
• Escalate unresolved claims via Tarion

 Tarion Coverage Highlights

• Deposit protection
• Delayed occupancy compensation (up to $7,500)
• 1 Year → Workmanship & materials
• 2 Years → Plumbing, electrical, water penetration
• 7 Years → Major structural defects
• Condo common elements covered

 Pro Tips

• Set calendar reminders for Tarion deadlines
• Save all builder & Tarion communication
• Use 3rd-party inspector at PDI if possible
• Resolve issues early to protect value & tenants

Final Word from Team Kalia

Buying a builder home or condo is a fantastic opportunity, but you need to know your rights and responsibilities. With Tarion coverage, timely inspections, and awareness of deadlines, you’ll safeguard your property and your money.

Need trusted and reliable guidance on buying or investing in a builder new home or condo? Call Team Kalia at (905) 339-5111