" In Ontario a builder has to put Tarion on the house unless he lives in it for a year making so no Tarion can ever be put on by a future homeowner. So he can build a house with defects and the next owner after the house is a year old is stuck with no recourse. "

If he lives in it for a year I would say it is no longer considered "new construction" so there would be no new construction warranty. That would seem likely the way it is but I do not know Canada really at all. As far as "Defects", I doubt there would be per se "defects", and most would be showing up within a year besides. get yourself a good home inspector and trust that. Vet the builders references as well, trust but verify.

That's why homebuyers in Ontario are wise to employ qualified home inspectors when purchasing. Unfortunately, your agent was not well-informed.

At times, I have been a licensed TARION and HUDAC homebuilder and a licensed Ontario real estate broker.

I've built several homes for our own occupation, but have moved on after a few years. And, as I recall, I couldn't put them under TARION--which is a backstop in case the builder fails to correct a warranteed defect--because that would mean I complain to the builder (me), then seek recompense from TARION if I failed to adequately address...me. My head is reeling!

Here's the warranty coverage.

In brief, the relevant coverage periods are for one, two and seven years. One for most everything, two for water penetration, heating and electrical defects, seven for major structural.

If the homeowner builder sells even within one year, there's no TARION coverage if the home is not enrolled. Which doesn't mean there's no recourse through legal action--just not through TARION.

Note here that TARION is far from a reassuring full-safety blanket.

Two-year old home becomes a teardown. TARION coverage leaves owners out hundreds of thousands of dollars.

And that even the full-throated endorsement from TV builders doesn't free you from caveat emptor.