To maintain Tarion coverage, purchasers of new freehold homes will need to register their agreement of purchase and sale (APS) within 45 days of entering into the APS, or they could lose some deposit coverage. This requirement comes into effect on July 1, 2025.

This new registration requirement for purchasers is meant to assist Tarion in identifying builders and homes that are not properly registered with Tarion.

Consumers who comply with the requirement will see no impact on their coverage. As of January 1, 2026, purchasers who fail to comply with the requirement will still be covered by Tarion through a special $10-million fund but may face reduced deposit coverage depending on the cost of claims Tarion receives. Also, no compensation will be paid out of the special fund claim until the calendar year immediately following the calendar year in which the claim was made.

Risk Management Advice:

As part of your intake procedure for a real estate file, consider asking the client if they filed their APS with Tarion, and if not, help them to do so ASAP. Purchasers should register their APS on the Tarion website.

Background on Tarion

Tarion administers the province’s new home warranty program and is responsible for paying out deposit claims for home buyers who’ve been spurned by builders. The deposit for a new freehold home bought after 2018 is protected up to $100,000 depending on the purchase price.

For ease of reference, here is a link to the Ontario New Home Warranties Plan Act, and the legislation creating the registration requirement (see Schedule 21).