Starting January 1, 2027, buyers of new freehold homes in Ontario will face a new registration requirement to curb illegal building practices and protect deposits.
Tarion, the organization that administers the province’s new home warranty program, will require buyers to register their purchase agreements within 45 days of signing. Those who miss the deadline or skip registration entirely will still have deposit protection through a separate fund with an annual cap.
The change allows Tarion to detect new home sales earlier. This visibility helps verify whether a builder holds a valid license and legal permission to sell. If a builder lacks authorization, Tarion can notify the Home Construction Regulatory Authority, which oversees new home builders in Ontario, and intervene to stop illegal sales.
“Illegal building is a serious issue where even a few bad actors can harm consumers,” said Peter Balasubramanian, Tarion’s president and CEO. “Purchase registration lets us confirm immediately if a builder is operating without proper approvals. We can then work with regulators to halt illegal activity.”
The registration process is straightforward. Buyers complete it online in minutes using the Home ID from their Warranty Information Sheet. After registering, they receive details about their builder warranty coverage.
Condominium buyers will not be affected. Since deposits for condo units are held in trust, their protection remains unchanged. The seven-year warranty for construction defects after possession also stays the same for all new homeowners.
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Real estate agents and mortgage brokers often answer buyer questions early in the process. With the 45-day window, professionals should mention the requirement during initial discussions. They can walk clients through the steps and explain how Ontario’s deposit and warranty protections work.
Mortgage professionals may find it helpful to bring up the rule during financing conversations. Buyers are already focused on deposits and timelines at this stage. Tarion recommends advisors guide clients through registration or even complete it for them.
“This step is designed to be quick and have a broad positive effect on new home builds,” Balasubramanian said. “For professionals who advise homebuyers, helping clients register right away ensures they’re protected and that builders operate with valid licenses.”
The change takes effect in 2027, but Tarion encourages professionals to educate clients now. The transition period allows time to learn the rules and prepare buyers for the requirement.
Balasubramanian described the shift as part of a larger effort to improve consumer protections. “Our aim is to stop illegal sales earlier in the process. Registration helps achieve this by requiring buyers to act and allowing Tarion to review each sale and intervene when necessary.”
More details and resources are available on Tarion’s website.
