A stronger and safer new home marketplace has wide-reaching benefits, from enhancing consumer trust in the housing market through to positive ripple effects on the economy at large.
But this type of marketplace isn't something that happens by accident — it’s intentionally built on smart policy, informed consumers, and the collective effort of real estate professionals.
This is the perspective driving a fresh update from Tarion, the not-for-profit consumer protection organization that administers Ontario’s new home warranty program, commonly known as the "builder's warranty."
In a phased approach, beginning July 1, 2025, buyers of new freehold homes in Ontario will be encouraged to provide notice of their purchase to Tarion within 45 days of entering their purchase and sale agreement — a move that strengthens consumer protection by making it easier for Tarion to identify transaction activity earlier in the purchase process.
This change reflects a broader effort by Tarion to help curb illegal new home sales, reinforce buyer confidence, and support the professionals who are doing right by consumers. And now more than ever, industry participation is critical — especially when it comes to encouraging (and helping) buyers to register their purchase agreements with Tarion.
Reason-being, while all new freehold home buyers will continue to benefit from Tarion’s deposit coverage, as of January 1, 2026, it’s exclusively those who provide notice that will qualify for the maximum amount of coverage currently available to encourage purchasers to notify Tarion that they have signed an agreement. (And when it comes to new home protections, it goes without saying: more is more.)
The registration process is simple: buyers can visit tarion.com/registertoday and register their agreement in a few clicks. There’s no cost involved — but the peace of mind provided is priceless.
The Power (and Simplicity) of Purchase Agreement Registration
Coverage under Ontario’s new home warranty program includes deposit protection, delayed closing compensation, and coverage against construction defects.
Purchase agreement registration is what links a buyer to their future home in Tarion’s system. It helps Tarion become aware of the sale early in the process, so if something happens to go wrong — fraud is detected, for example — Tarion and the Home Construction Regulatory Authority (HCRA) can take action to protect the buyer and make sure they know what they’re entitled to. These safeguards include deposit protection, up to certain limits, if a buyer exercises their right to terminate a purchase agreement, or a builder fundamentally breaches the agreement or goes into bankruptcy. (The latter are rare cases, but they do happen, and it’s important to be prepared.)
In short, if a builder isn’t able to deliver a buyer’s new home, and isn’t able to return their deposit, submitting a compensation claim to Tarion comes into play.
Unfortunately, many buyers aren't aware of these nuances. That’s why Tarion is looking to the full ecosystem of housing professionals — builders, real estate agents, mortgage brokers, lawyers, and other industry insiders — to play a crucial role in helping clients take this step, and to help them understand why it matters.
“As trusted advisors in the journey, industry professionals already play a vital role in educating homebuyers about their coverage and consumer rights under their builder’s warranty,” said Peter Balasubramanian, Tarion’s President and CEO. “Because this new step is meant to immediately follow the purchase agreement signing, these professionals can help ensure their clients understand the importance of registering and complete it in real time.”
Helping Buyers = Helping the Whole Market
The benefits of registering for the builder's warranty go well beyond an individual transaction. Registered agreements make it more seamless for Tarion to track home sales activity, allowing for quicker detection of illegal activity — and swift action from Tarion and the HCRA to help shut that activity down if detected.
On the flip side, when those builders take deposits and disappear — or sell homes that don’t meet minimum standards — it’s not just the buyer who loses. The ripple effects are real, with the resulting media coverage causing real damage to the sector’s reputation, eroding consumer trust, and having a tangible impact on new home purchases.
When the industry works together to promote registration, everyone wins.
“Everyone benefits from a new home buying process that includes stronger consumer protection measures – especially good builders,” said 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.”
It goes without saying that this isn’t just a consumer protection issue, but an industry-wide issue. A robust registration system rewards good builders and professionals for following the law, while creating fewer opportunities for bad actors to slip through the cracks.
Andy Dean Photography/Shutterstock
A New Standard, A Stronger Marketplace
Ultimately, Tarion's newest change comes down to strengthening the integrity of Ontario’s new home sector.
Yes, deposit protection — backed by Tarion — offers a critical safety net for consumers. But it also reinforces confidence across the board, giving lenders, agents, legal professionals, and potential purchasers more assurance that transactions are happening by the book.
As of July 1, when buyers are encouraged to notify Tarion within 45 days of their purchase, the message will be even clearer: Tarion is serious about protecting Ontario’s homebuyers. But making that protection effective depends on widespread adoption of purchase agreement registration, and that means every professional has a role to play.
Whether you’re helping clients find the right location, finalizing their financing, or walking through their inspection, encouraging registration is one of the simplest and most powerful ways to protect their investment — and for you to make a positive impact on the industry.
To learn more about the upcoming changes to Ontario's new home warranty program, visit Tarion.com/NewHomeRegistration.
If you're a buyer looking to register your Purchase Agreement with Tarion, click here.
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This article was produced in partnership with STOREYS Custom Studio.
