The Ontario New Home Warranty Plan Act provides that every vendor of a new home warrants it to be constructed in a workmanlike manner, free from material defects, fit for habitation, constructed in accordance with the Building Code, and also free of major structural defects.

Now known as Tarion. Most defects are covered for a period of one year from the date of completion or possession, but major structural defects are covered for up to seven years. Certain defects in materials, electrical, plumbing and heating, exterior cladding, and safety related defects are covered for two years. A major structural defect is defined as a defect in work or materials that results in the failure of the load-bearing portion of a building, or materially and adversely affects its load-bearing function or the use of the building for the purpose for which it was intended. Claims for construction defects are limited to a total of $100,000.00.