New purchase agreement registration designed to enhance consumer protection
This article was provided by Tarion
Tarion, the organization responsible for administering Ontario’s new home warranty program, is taking new steps in the fight against illegal building and selling practices. Beginning July 1st, 2025, purchasers of new freehold homes will be encouraged to register their purchase agreement with Tarion within 45 days of signing to protect their investment and ensure they receive the maximum amount of deposit protection coverage.
This change marks a new step in Ontario’s homebuying process and has important implications for both consumers and the professionals who support them — especially real estate lawyers.
“Illegal home building and selling is a serious problem that hurts consumers,” said Peter Balasubramanian, Tarion’s President and Chief Executive Officer. “By adding this new step for home buyers, we’ll be able to confirm that the builder was approved to sell — and if not, we can act quickly with the Home Construction Regulatory Authority to shut down the illegal activity.”
Homebuyers can register their purchase with Tarion through an easy-to-use online portal. Once the registration is complete, they’ll receive important information from Tarion about the details of their builder’s warranty.
Buyers who do not register their purchase within 45 days after signing — or do not register at all — will qualify for a different, potentially lower, amount of coverage.
No change for condo buyers or post-possession coverage
These changes only affect freehold homebuyers in Ontario. Because deposit protection is structured differently for new condominiums, new condo unit buyers do not need to notify Tarion about their purchase.
Regardless of whether a purchaser registers or not, all new homeowners will continue to have full coverage for potential issues with their home under the builder’s warranty for seven years after they take possession.
For lawyers who help clients with real estate transactions, this change represents an opportunity to play a vital role in helping to ensure clients take the necessary steps to protect their investment and receive the maximum deposit coverage.
“As trusted advisors in the journey, lawyers already play a vital role in educating homebuyers about their purchase, including their coverage and consumer rights under their builder’s warranty,” said Balasubramanian. “Because this new step is meant to immediately follow the purchase agreement signing, lawyers can help ensure their clients understand and complete the registration in real time.”
Tarion encourages lawyers to guide clients through the process, help clients with the registration itself, or complete it on their behalf.
Although the change does not come into effect until July 1st, this transition period is an opportunity to become familiar with the process and give clients advance notice about how and why it will be important to complete this step.
“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 transaction cycle and our efforts will be more effective if all of the players in the new home buying process — homeowner, builder, lawyer — are aware and engaged.”
More details, including consumer-friendly resources, are available at Tarion.com.
