Purchase Agreement Registration with Tarion for New Freehold buyers
According to the latest law, starting July 1, 2025, all buyers who sign a new purchase agreement for a freehold home in Ontario must register their agreement on the Ontario New Home Warranty Corporation (Tarion) website within 45 days of signing. This registration ensures eligibility for the maximum compensation in the event of a deposit claim. Failure to register on time may result in not receiving the full compensation amount.
The purpose of this legal amendment is to allow Tarion to intervene early in the development of new freehold home projects, ensuring developers comply with the law and identifying illegal developers early to protect consumer interests. Previously, only buyers of new condominiums had robust deposit protection, while deposit management and protection for new freehold homes were relatively weak. In recent years, many unlicensed developers have operated without Tarion’s authorization, deceiving many consumers.
The registration process is simple and takes about 5 minutes on the Tarion website. You’ll need to provide personal information, the developer’s name, the address of the new home project, the deposit amount, and other details. For those planning to buy a new freehold home, remember to register on time!
Note:
This document is for reference only and does not constitute legal advice. For specific questions, please consult your lawyer.
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