Overview of the New Tarion Registration Requirement
Purchasers of newly constructed homes in Ontario now have a new and time-sensitive obligation that can materially affect their deposit protection.
Under recent changes to Ontario’s new home warranty regime, purchasers of new freehold homes are required to notify Tarion Warranty Corporation of their purchase within 45 days of signing the Agreement of Purchase and Sale (APS). Failure to do so can significantly reduce the level of deposit protection available if something goes wrong with the transaction. Vendors are required to provide a Warranty information sheet (updated as of April 2026) to each purchaser advising the purchaser to enroll their purchase within the stipulated timeline.
As of April 1 2026, purchasers of newly constructed freehold homes must register their purchase with Tarion within 45 days of entering into the APS. Registration is completed through Tarion’s online portal and requires basic transaction details, including purchaser information, builder name, property address and deposit amounts.
Who the Requirement Applies To
The requirement applies to purchasers of newly constructed freehold homes, including homes on parcels of tied land. It does not apply to condominium purchases.
Why Timely Registration Matters
Purchasers who register on time remain eligible for full statutory deposit protection under the Ontario New Home Warranties Plan Act, including maximum deposit coverage (generally up to C$100,000, depending on purchase price). For compliant purchasers, there is no negative impact.
Purchasers who fail to register within the required timeframe do not lose Tarion coverage entirely, but their deposit protection is significantly limited. As of January 1, 2026, late-registered purchasers are paid from a separate C$10 million annual compensation pool shared among all late registrants across Ontario. Claims may be reduced on a prorated basis and payouts are delayed until the year following the claim.
Builder Compliance Obligations
The registration requirement was introduced to help combat illegal building and selling of new homes and to allow early detection of unlicensed builders. Early purchaser notice enables regulators to intervene before additional deposits are lost.
Builders are required to provide the correct and current information sheet to each agreement of purchase and sale. Failure to provide the required form or providing an outdated version is a breach of Tarion delivery requirements.
If a Builder fails to comply, the Registrar can issue a notice of proposal which may result in conditions being imposed on a builder's ability to enroll homes, suspension or refusal of enrollment or mandatory corrective actions before further sales are permitted. It can also lead to licence suspension or discipline proceedings.
Failure to provide the correct information sheet does not void the agreement of purchase and sale and does not entitle the purchaser to rescind the agreement of purchase and sale.
Key Takeaways for Purchasers
Purchasers should not assume the builder has notified Tarion. Registration is simple and can be completed online by the purchaser or with assistance from a lawyer.
Missing the 45-day deadline introduces real financial risk if a project fails.
The Tarion purchaser registration requirement is easy to overlook but can have significant financial consequences. Timely registration is now a critical risk-management step for purchasers of new freehold homes in Ontario.
