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 in order to 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 and mortgage professionals.

“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 in the homebuying process, 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 illegal activity.” 

What these changes mean for homebuyers 

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. 

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.

How real estate and mortgage professionals can help 

Real estate agents and mortgage professionals play vital roles in the homebuying journey and are already well-versed in guiding clients through the details of their builder’s warranty coverage. With the new registration step, professionals can extend that support by incorporating deposit protection into early-stage conversations. For mortgage professionals, Tarion’s deposit protection and the new registration step are especially relevant in financing conversations. 

“This new step in the homebuying process is designed to be quick and easy—and have a widespread positive impact,” says Balasubramanian. “For all professionals who act as trusted advisors to homebuyers, helping clients complete this step early on can make all the difference in ensuring they’re protected.”

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

Start educating clients now 

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 the upcoming change. 

“Everyone benefits from a new homebuying process that includes stronger consumer protection measures,” explains Balasubramanian. “Our goal is to disrupt illegal home sales earlier in the transaction cycle—but our efforts will be more effective if all industry participants are aware and engaged.” 

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