New registration requirements for newly built homes in Ontario

Tarion, the organization responsible for administering Ontario’s new home warranty program, is taking steps to address illegal building and selling practices while continuing to protect consumers. 

To help identify fraudulent activity sooner, homebuyers must register their agreements within 45 days of signing. Beginning Jan. 1, 2027, buyers who register late, or who do not register at all, will still have deposit protection, but through a separate fund for unregistered deposits that is subject to an annual cap.

This new measure gives Tarion earlier visibility into new home sales and allows it to confirm whether a builder is licensed and legally permitted to sell homes. If a builder is not authorized to sell, Tarion can alert the Home Construction Regulatory Authority, which regulates new home builders and vendors in Ontario, and action can be taken to protect consumers.

“Illegal building is a serious problem where even a few bad actors can have real consequences for consumers,” said Peter Balasubramanian, Tarion’s president and chief executive officer. “With purchase registration, we will be able to verify right away if a builder is selling without the proper approvals  and work with the Home Construction Regulatory Authority to shut down illegal activity.”

What these changes mean for homebuyers 

Registration can be done entirely online and only takes a few minutes. Homebuyers will need the Home ID found on the Warranty Information Sheet attached to their Agreement of Purchase and Sale. Once registration is complete, they will receive important information from Tarion about their builder warranty. Buyers who do not register within 45 days of signing, or who do not register at all, will qualify for a different coverage to support unregistered buyers.

No change for condo buyers or post-possession coverage 

These changes only affect freehold homebuyers in Ontario. Because deposits for condominium units are held in trust, their deposit protection is structured differently and new condo unit buyers do not need to notify Tarion about their purchase. 

Additionally, all new homeowners will continue to have full coverage for potential construction issues with their home under the builder’s warranty for seven years after they take possession.

How real estate and mortgage professionals can help 

When buying a home, real estate agents and mortgage professionals are often the first people buyers turn to with questions. With this 45-day registration requirement, it’s important to raise it early, walk clients through what they need to do and explain what Ontario’s deposit and warranty protection covers. For mortgage professionals, this may be especially useful during financing conversations, when buyers are already thinking about deposits, timelines, and next steps.

“This new step is designed to be quick, easy and have a widespread positive impact on the new home build ecosystem,” said Peter Balasubramanian, president and CEO of Tarion. “For all professionals who act as trusted advisors to homebuyers, helping clients complete this step right away can make all the difference in ensuring they’re protected and that builders in the system are operating with licenses.”

Tarion encourages advisors to guide clients through the registration process, help with the registration itself, or even complete it on their behalf.

Start educating clients now 

Although the change does not come into effect until Jan. 1, this transition period is an opportunity to become familiar with the new rules and give clients advance notice about the upcoming change. 

“Everyone benefits from a new homebuying process that includes stronger consumer protection measures,” said Balasubramanian. “Our goal is to disrupt illegal home sales earlier in the home building cycle, and registration is an effective way to accomplish that. It requires a collaborative approach, where home buyers do their due diligence by registering and Tarion does its part by vetting each new home sale and taking swift action when needed. 

More details, including consumer-friendly resources, are available at Tarion.com.