Ontario's 45-day registration rule targets builder fraud
By Relta Real Estate
1 min read
Ontario is clamping down on illegal builders through a registration deadline that matters only to freehold buyers. Late registration after January 1, 2027 kicks you into a capped alternative fund, not the standard warranty coverage.
Direct impact on Ontario freehold home purchases; new obligations starting 2027.
Homebuyers must register agreements within 45 days of signing, beginning January 1, 2027.
A firm deadline. Missing it means your deposit sits in a separate, capped fund instead of the standard protection. Registration takes minutes online, so there is no excuse for delay.
Late or unregistered buyers get deposit protection through a separate fund subject to an annual cap, not the standard warranty coverage.
This creates a two-tier system. You do not want to be in the second tier. The cap could leave you exposed if the builder fails.
The rule applies only to freehold homes, not condos, because condo deposits are held in trust.
Condo buyers keep their existing protections. Freehold buyers carry the new burden. Know which applies to your purchase.
Tarion can verify builder licensing immediately and alert the Home Construction Regulatory Authority to stop illegal activity.
The real goal is stopping unlicensed builders before they take buyer money. That is good policy, but it puts the onus on you to register on time.
“Illegal building is a serious problem where even a few bad actors can have real consequences.”
What this means in BC
British Columbia has its own new home warranty requirements through Homeowner Protection Office coverage, which operates differently from Ontario's Tarion model. BC buyers should understand that your province's protections do not track Ontario's registration deadlines, but the underlying principle is the same: early documentation protects you against builder fraud.
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