When buying a pre-construction home in Ontario, it is important to be aware of the risks and do your research. You should check the Ontario Builder Directory to make sure your builder is licensed and understand the warranty coverage provided by the builder and Tarion. This includes deposit protection, delayed closing/occupancy coverage, and financial loss protection for contract homes. The warranty also covers Ontario Building Code violations, defects in workmanship and materials, water penetration, and major structural defects for up to seven years.