Custom-Built Homes and Estate Lots in Stoney Creek and Hamilton: What Protects a Buyer
Many houses over $1 million were built one at a time, not in a subdivision. The warranty, the builder's licence and the permit history can each be solid, partial or missing, and a listing rarely says which.
This guide covers the three situations you will meet, how Ontario's new home warranty applies to each, and what to ask for. Our guide to new build versus resale covers the general trade-offs.
Three kinds of custom house
A custom house reaches the market in one of three ways: as a resale a few years old, as a newly finished house sold by its builder, or as a house the previous owner built for their own use (owner-built).
If you buy a lot and hire a builder, Tarion calls the result a contract home. The builder must be licensed and enrol the house, and the same warranty applies.
How the new home warranty works
The builder provides the warranty and Tarion backs it. It starts on the possession date and has three periods:
- One year: workmanship, materials and Ontario Building Code compliance.
- Two years: water penetration through the foundation or building envelope, and defects in the plumbing, electrical and heating systems.
- Seven years: major structural defects.
The maximum for a freehold house is $400,000 where the purchase agreement was signed on or after July 1, 2023, and $300,000 before that (as of October 2026).
The warranty stays with the house for seven years from the original possession date, so a later buyer gets whatever time remains.
To check before you buy, the Ontario Builder Directory has a search that confirms warranty coverage on a house less than seven years old. Ask the seller for the warranty start date and the builder's name.
Builder licensing
Anyone who builds or sells new homes in Ontario must be licensed by the Home Construction Regulatory Authority (HCRA). Its public Ontario Builder Directory shows whether a builder is licensed, any conditions on the licence, and its record of charges, convictions and warranty claims.
Owner-built houses
A person building a house for their own use on their own land may not need a builder's licence. The HCRA states that an owner-built house is not eligible for the statutory warranty, so a later buyer normally has no Tarion coverage, however new the house is.
An owner who builds and then sells without genuinely living in the house first may be treated as a builder, with the warranty obligations that go with it. Your lawyer confirms where a particular house stands.
| Situation | Warranty position | Main thing to check |
|---|---|---|
| Resale, a few years old | If enrolled, the time left in the seven years passes to you | Enrolment, warranty start date, permits for anything added since |
| New, sold by its builder | Full warranty from your possession date, if the house is enrolled | The builder's directory record, enrolment, occupancy permit |
| Owner-built | No statutory warranty | Permit and inspection records, how long the owner lived there |
Permits and the records to ask for
A new house needs a building permit. In Hamilton, nobody may occupy a new house until an occupancy permit has been issued. Later work needs its own approval: usually a building permit for an addition, a finished basement or an outbuilding, and a pool enclosure permit for a pool.
Work without a permit, or a permit never closed, is something to settle before closing. Hamilton's Building Division releases permits, plans and surveys through a routine disclosure request, but only to the owner or someone the owner authorizes in writing, so the request goes through the seller. The City charges a search fee. Your lawyer confirms title, permits and warranty status.
On a one-off house, also ask for:
- drawings, as-built plans and the survey
- the list of trades and suppliers
- warranty documents for the roof, windows and mechanical equipment
- septic and well records (see our guide to inspecting a larger house)
Estate lots
A large lot can mean a septic system and a well in place of municipal services, and a long driveway that is yours to plough and repair. Ask your lawyer about easements and rights of way on title, and ask the seller how the lot is graded and where it drains.
Land on the escarpment, near the lake or in a rural area can need a Niagara Escarpment development permit or conservation authority approval before you add anything, as explained in our guide to escarpment, lakefront and conservation rules. Do not assume a large lot can be severed. That needs a consent from the City's Committee of Adjustment, which can refuse it (see our lot and zoning guide).
A house designed closely around one owner's tastes may suit fewer buyers when you sell. Weigh that against how long you plan to stay.
Who should be careful
- Buyers of an owner-built house, who have no statutory warranty.
- Buyers relying on a warranty they have not confirmed.
- Buyers of a house with an addition, finished basement or pool that has no permit on record.
If you want a full warranty and little paperwork to chase, a one-off house may not suit you.
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Frequently Asked Questions
Does the Tarion warranty transfer when a house is sold?
Yes. It stays with the house for seven years from the original possession date, and a later owner gets the time left. The new owner contacts Tarion after closing to be put on record.
How do I check if a house in Ontario is covered by Tarion?
Use the warranty search on the Ontario Builder Directory for a house under seven years old.
Does an owner-built house have a new home warranty?
No. A house built by its owner for their own use is not eligible for Ontario's statutory warranty.
How do I check if a builder is licensed in Ontario?
Search the HCRA's Ontario Builder Directory.
How do I check building permits on a house in Hamilton?
The Building Division releases permit records to the owner or an authorized agent, so the request goes through the seller.
Want to talk through the warranty and permit questions for a specific house? Get in touch and we will go through it with you.
This guide is general information, not legal advice. Warranty limits, fees and permit rules change, so confirm the details for any house with your lawyer, Tarion, the HCRA and the City of Hamilton.