Question: “Do I need a Tarion Warranty if I build a house myself?”
Response: If you are building a home for yourself here in Ontario and not for resale, you do not need a Tarion Warranty. As a matter of fact, if you built a home for sale and had enrolled in the Ontario New Home Warranty Program (enforced by Tarion Warranty Corporation) then decided to live in it yourself the warranty would not apply. Tarion protects buyers by ensuring that the builder meets certain performance guidelines. It would not make sense for Tarion to protect a builder from himself/herself.
When you apply for a building permit, you will be asked if the home will be for personal use or sale. If it is for sale, you must enroll into the New Home Warranty Program. The municipality will not give you a permit to build unless you do so. Anyone can build a home for themselves. In fact it is a great way to create wealth and save money (IF you have the time, access to the right people and financial means). I’ve bought from a builder and built myself. Builders have access to economies of scale and the emotional detachment allows them to move faster. Building for yourself takes a little longer but the final product is usually customized to you and you can decide on being the project manager yourself or contracting that out.
If you are building for yourself and intend to sell or buying from a builder who is not providing a Tarion New Home Warranty, contact someone with specific experience with new homes, Tarion and re-sale such as myself. There can be many surprises and it is different than a 3 year old re-sale home. For help to ensure that your interests are properly protected and to limit potential issues after closing, you can reach me at 416-272-9898 or Toll Free at 1-855-737-8383.