After numerous recent cases of illegal building and wrongful deposit taking, Tarion is acting to address illegal activity and protect current and future new home purchasers. Seeing that the illegal building and selling of new homes is a serious problem which hurts consumers, these changes will help identify illegal activity, and enable action to be taken earlier to protect consumers.
1. You Must notify Tarion Starting January 1, 2026.
The 45-Day Rule Begins January 1, 2026. Beginning January 1, 2026, purchasers of new freehold homes must register their purchase agreements with Tarion within 45 days of signing to qualify for the maximum deposit coverage.
2. Late Registration = Reduced Protection.
If you register after the 45-day window, or do not register at all, you will still have some deposit protection. However, it will be a potentially reduced amount, and it will be covered by a separate fund with an annual cap of $10 million.
3. The requirement is Not retroactive and Not for Condos.
You are not required to register existing purchases. This only applies to agreements signed on or after January 1, 2026. Condos are exempt: Tarion is only making changes to freehold deposit protection due to the different (better) deposit protection for condominiums.
Practical Tips for Buyers:
- Be Proactive: Note the 45-day deadline immediately after signing your agreement.
- Use Professionals: Don’t hesitate to ask your real estate agent or lawyer to assist you with the registration process.
- Be Prepared: Have your builder’s name, the home’s address, and your deposit amount ready when you go to register.
Dig Deeper: