Blog > Tarion Warranty for Markham New Builds: What's Covered, What's Not, and How to Use the PDI
Tarion Warranty for Markham New Builds: What's Covered, What's Not, and How to Use the PDI
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Tarion Warranty for Markham New Builds: What's Covered, What's Not, and How to Use the PDI
You're getting the keys to your new Markham build next week. The PDI is your one shot. Most buyers spend 20 minutes — and miss the items Tarion won't cover later. With Cornell, Wismer, and Angus Glen new builds closing in late 2026, Tarion coverage is widely misunderstood — and deposit protection only goes to $20K. Here's what every Markham new-build buyer needs to know, from Michael John Lau, Markham's top REALTOR® and pre-construction specialist.
The PDI Reality: Your 60-Minute Window to Protect a $1M+ Investment
The Pre-Delivery Inspection (PDI) is your only opportunity to document defects, incomplete work, or deviations from your Agreement of Purchase and Sale before you take possession. Once you sign the PDI form and receive keys, many issues become significantly harder — or impossible — to have addressed under Tarion warranty.
⚠️ The Critical Gap: Tarion's warranty has strict timelines: 30 days for critical items, 1 year for most defects, 2 years for water penetration, 7 years for major structural defects. But if you don't document an issue during PDI, the builder can argue it was "accepted as-is" — shifting the burden of proof to you.
Tarion Warranty 101: What's Actually Covered in Ontario
Tarion Warranty Corporation is Ontario's new-home warranty provider. All registered builders must enroll homes in the program. Coverage is tiered by timeline and severity:
- 30-Day Critical Items: Issues affecting health, safety, or habitability (no heat, major electrical faults, plumbing leaks, broken windows). Builder must fix within 30 days of PDI or Tarion inspection.
- 1-Year Warranty: Most common defects: drywall cracks, paint touch-ups, flooring gaps, cabinet alignment, appliance functionality, door/window operation. Must be reported within 1 year of possession.
- 2-Year Warranty: Water penetration (basement leaks, window condensation), exterior cladding defects, drainage issues. Requires documentation of when issue first appeared.
- 7-Year Major Structural Warranty: Foundation cracks, load-bearing wall failures, roof structural defects. High burden of proof; requires engineering assessment in most cases.
Markham-Specific Note: For homes in flood-prone areas like parts of Box Grove or Mount Joy, document drainage and grading meticulously during PDI — water issues are the #1 source of Tarion claims in York Region.
What Tarion Does NOT Cover (The Surprising Exclusions)
Many buyers assume "new build = perfect." Tarion explicitly excludes:
The 87-Item PDI Checklist: What to Inspect (and How)
Most buyers spend 20 minutes on PDI. Michael John Lau's clients spend 90+ minutes with a systematic approach. Here are the high-impact categories:
Test: HVAC in heat/cool mode, all thermostats, water heater operation, electrical panel labeling, GFCI outlets in wet areas, smoke/CO detectors
Document: Serial numbers, model tags, installation dates for warranty claims
Test: All faucets (hot/cold), toilet flushes, shower drainage, basement sump pump, exterior grading with water hose
Document: Photos of water flow direction, any pooling, moisture readings with handheld meter
- Window Operation: Test every window for smooth opening, locking, and seal integrity — especially in multi-story units where replacement is costly.
- Door Alignment: Check interior/exterior doors for proper swing, latch engagement, and weatherstripping contact.
- Electrical Outlets: Use a plug tester on every outlet; mark any with reversed polarity or open ground.
- Appliance Function: Run dishwasher, oven, range hood, laundry hookups — don't assume "new = working."
- Tile Grout & Caulking: Inspect for gaps, cracks, or missing sealant in wet areas (bathrooms, kitchen backsplash).
- Hardwood Flooring: Check for gaps, cupping, or squeaks — document with photos and measurements.
- Basement Waterproofing: Look for efflorescence (white powder), damp spots, or musty odors indicating moisture intrusion.
- Exterior Cladding: Inspect brick, siding, or stone for cracks, loose pieces, or improper flashing around windows/doors.
- Driveway & Walkways: Check for proper slope away from foundation and absence of major cracks or settling.
- Smart Home Systems: Test thermostats, security panels, doorbell cameras, and app connectivity if included.
Pro Tip: Bring a flashlight, level, plug tester, and smartphone with a notes app. Take timestamped photos of every item — even if it looks fine. "No issues noted" is a valid PDI entry that protects you later.
How to Document PDI Findings for Maximum Tarion Protection
The PDI form is a legal document. How you fill it out determines your warranty leverage:
| Documentation Method | Weak Approach | Michael-Lau Strong Approach |
|---|---|---|
| Written Description | "Kitchen cabinet loose" | "Upper cabinet #3 (left of sink), door hinge screw missing; door sags ¼" when closed; photo #K-07" |
| Photos | One blurry phone pic | 3 angles: wide context, mid-range detail, close-up of defect; timestamped; labeled with room/item code |
| Measurements | "Crack looks big" | "Drywall crack at ceiling corner: 2.3mm width, 18cm length, runs diagonally from top right; measured with digital caliper" |
| Builder Acknowledgment | Verbal "they'll fix it" | Builder representative signs PDI form next to each item; get copy before leaving site |
| Follow-Up | Wait for builder to call | Submit Tarion Form 1 (30-Day) within 30 days of possession for critical items; keep certified mail receipts |
Markham Builder Patterns: What to Watch For by Community
Having guided dozens of PDI inspections across Markham, Michael John Lau has identified community-specific patterns:
📍 Cornell (Mattamy, Fieldgate)
Common PDI Finds: HVAC balancing issues in multi-level townhomes; grading adjustments needed after final landscaping; appliance delivery delays.
Pro Tip: Test HVAC in all zones simultaneously — Cornell builds often have complex duct runs that need fine-tuning.
📍 Wismer (Remington, Aspen Ridge)
Common PDI Finds: Window seal condensation in high-humidity seasons; basement drainage testing critical due to clay soil; upgrade appliance compatibility checks.
Pro Tip: Run basement sump pump with hose for 10 minutes during PDI — don't rely on "it worked at final inspection."
📍 Angus Glen (Luxury Custom Builds)
Common PDI Finds: Smart home system integration gaps; custom millwork alignment; premium appliance calibration.
Pro Tip: Bring your smart home app and test all connected devices during PDI — builder tech support is fastest pre-possession.
Michael John Lau's PDI Protocol: "I don't just attend PDIs — I engineer them. My clients receive a customized 87-item checklist 48 hours pre-inspection, a pre-PDI video briefing on what to test, and post-PDI support for Tarion form submission. Because your PDI isn't a walkthrough — it's your warranty foundation."
Real Markham PDI Scenarios: When Documentation Saved the Day
📍 Cornell Townhome — Water Penetration Caught Early
PDI Finding: Client documented minor water pooling near basement window well during hose test
Follow-Up: Submitted Tarion Form 1 within 30 days; builder repaired grading and added drainage channel
Result: Avoided potential $8K–$12K water damage claim; home remained dry through 2026 spring thaw
📍 Wismer Condo — Appliance Warranty Gap
PDI Finding: Client tested new refrigerator during PDI; discovered compressor noise not present at final inspection
Follow-Up: Documented with audio recording + serial number; builder coordinated manufacturer warranty service pre-possession
Result: Unit replaced under manufacturer warranty (not Tarion); zero downtime for buyer
📍 Angus Glen Custom — Structural Documentation
PDI Finding: Client measured hairline foundation crack (1.8mm) during PDI with caliper; photographed with scale reference
Follow-Up: Monitored crack quarterly; when it widened to 3.2mm at 18 months, submitted Tarion Form with PDI baseline photos
Result: Tarion approved structural assessment; builder repaired under 7-year warranty; client avoided $25K+ out-of-pocket
🔑 Getting Keys to a Markham New Build?
Don't wing your PDI. Get Michael John Lau's free 87-Item Pre-Delivery Inspection Checklist — with Markham-specific testing protocols, Tarion form templates, and photo documentation guides.
* Free resource. No obligation. Serving Markham, Unionville, Thornhill, Richmond Hill & York Region new-build buyers.
🏆 Michael John Lau — Awards & Recognition
Michael John Lau is a licensed REALTOR® and CPA serving buyers and sellers in Markham, Ontario and across York Region. Information regarding Tarion Warranty Corporation coverage, Pre-Delivery Inspection (PDI) procedures, and new-home warranty claims is for educational purposes only and does not constitute legal advice. Tarion coverage terms, claim deadlines, and builder obligations vary by enrollment date, home type, and specific agreement wording. All new-home buyers should review their Agreement of Purchase and Sale with a qualified real estate lawyer and consult Tarion's official resources for current warranty guidelines. Not intended to solicit clients currently under contract with another brokerage.
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