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Get My Free Estimate →Since 1 April 2026 a purchaser must notify Tarion of a new home purchase within 45 days of entering the agreement of purchase and sale. Tarion has deferred the deposit-coverage consequences until 1 January 2027. After that, freehold buyers who register in time qualify for the maximum deposit coverage available; those who miss the deadline fall under a sub-limit within a special fund of $15 million per year, with compensation based on a proportional share if claims exceed it. For context on what is at stake: freehold deposit protection runs to $100,000, and condominium deposit protection under the Tarion warranty is $20,000 — not $100,000, which is the most conflated fact in Ontario pre-construction.
Two things are changing in Ontario new home warranty and almost nothing has been written about either. The first is already in force: since 1 April 2026, a purchaser must notify Tarion of a new home purchase within 45 days of entering the agreement. The second arrives on 1 January 2027, when missing that notice starts to have consequences for deposit coverage.
The requirement
| Detail | |
|---|---|
| What | Purchasers must give notice of their new home purchase to Tarion. |
| When | Within 45 days of entering the agreement of purchase and sale. |
| In force since | 1 April 2026. |
| Consequences deferred to | 1 January 2027 — Tarion states it is implementing a transition period and deferring the changes to deposit coverage until then. |
So there is a window running right now, roughly four months long, in which the obligation exists and the penalty does not. If you signed a new home agreement since 1 April 2026 and did not register it, that is the thing to fix this week rather than next year.
What happens if you miss it
Tarion’s guidance describes this as applying to freehold homes. Freehold buyers who register in time “will qualify for the maximum amount of deposit coverage currently available”. Those who miss the deadline fall under a sub-limit within a special fund of $15 million per year, with compensation “based on a proportional share of the special fund” if claims exceed it.
Read that carefully, because it is a change in the nature of the protection rather than just its size. Full deposit coverage is a defined entitlement. A proportional share of a capped annual pool is not — what you recover depends on how many other people claim against the same pool in the same year, which is precisely the sort of thing that goes wrong in a year when several builders fail at once.
What deposit coverage is worth, so you know what is at stake
| Type of home | Tarion deposit protection |
|---|---|
| Condominium unit | $20,000, plus a limited amount of accrued interest |
| Freehold, price $600,000 or less | Up to $60,000 |
| Freehold, price above $600,000 | 10 per cent of the purchase price, to a maximum of $100,000 |
| Freehold, agreement signed before 1 January 2018 | Maximum $40,000 |
Since January 2018 the protection also covers other payments made by the purchaser, such as those for upgrades and extras.
The $100,000 figure is freehold only. Condominium deposit protection under the Tarion warranty is $20,000. This is the most conflated fact in Ontario pre-construction and it is worth being blunt about, because a condominium buyer with a $150,000 deposit who believes they have $100,000 of warranty coverage has badly misjudged their position. Condominium deposits are separately protected by the trust obligation in s. 81 of the Condominium Act, 1998, which is a different mechanism that fails in different ways — the insolvency page sets out how the two interact.
Why this matters more than it would have five years ago
Tarion currently lists 18 builders or projects on its bankruptcies, insolvencies and receiverships page, and states on that page that it “may not be a complete list of current insolvency situations”. Urbanation counted 11,653 pre-construction units cancelled in the Greater Toronto and Hamilton Area since the start of 2024. Deposit protection has stopped being a theoretical part of the paperwork.
In that environment, an administrative deadline that moves you from a defined entitlement to a proportional share of a capped pool is not a technicality.
What to do
- If you signed a new home agreement on or after 1 April 2026, confirm the notice to Tarion was given within 45 days. Do not assume the builder did it — the requirement is on the purchaser.
- If you are signing now, diarise 45 days from the agreement date and treat it like a conditional deadline.
- Ask your lawyer to confirm it as part of the ten-day review on a condominium purchase, under s. 73(2) of the Condominium Act.
- Keep everything. Agreement, every schedule, every amendment, the statutory addendum, and copies of every cashed deposit cheque front and back. That is precisely the list Tarion asks for on a claim.
One limit I want to be open about. Tarion’s published material describes the deposit-coverage consequence in terms of freehold homes. I have not found an equally clear statement of how the transition applies to condominium purchasers. If you are buying pre-construction condominium, give the notice anyway — it costs nothing — and ask your lawyer to confirm the position rather than relying on this page.
Signed a pre-construction agreement since April?
The 45-day notice is on you, not the builder, and the consequence starts in January. If you are not sure whether it was given, that is a five-minute question worth answering now. Send me the project and the agreement date and I will tell you what to check and who to ask.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
What is Tarion’s 45-day notice requirement?
Purchasers must give notice of their new home purchase to Tarion within 45 days of entering the agreement of purchase and sale. The requirement took effect on 1 April 2026. The obligation is on the purchaser, not the builder.
What happens if I miss the 45 days?
Nothing yet. Tarion has deferred the deposit-coverage consequences until 1 January 2027. From that date, Tarion’s guidance is that freehold buyers who register in time qualify for the maximum deposit coverage available, while those who miss the deadline fall under a sub-limit within a special fund of $15 million per year, with compensation based on a proportional share if claims exceed the fund.
How much deposit protection does Tarion provide?
For a condominium unit, $20,000 plus a limited amount of accrued interest. For a freehold home priced at $600,000 or less, up to $60,000; above $600,000, 10 per cent of the purchase price to a maximum of $100,000. Agreements signed before 1 January 2018 are capped at $40,000.
Is my condo deposit protected up to $100,000?
No. The $100,000 figure is freehold only. Tarion warranty protection for a condominium unit deposit is $20,000. Condominium deposits are separately protected by the trust requirement in s. 81 of the Condominium Act, 1998, which is a distinct mechanism.
Does this apply to condominium purchases too?
Tarion’s published guidance describes the deposit-coverage consequence in terms of freehold homes, and I have not found an equally clear statement of how it applies to condominium purchasers. Give the notice anyway, since it costs nothing, and have your lawyer confirm the position.
Why does this matter now?
Tarion currently lists 18 builders or projects in insolvency proceedings, and states the list may not be complete. Urbanation counted 11,653 pre-construction units cancelled in the Greater Toronto and Hamilton Area since the start of 2024. Deposit protection has stopped being theoretical.
Related reading
- Your builder is insolvent: what happens to the deposit
- Reading a builder before you sign
- Interim occupancy and the appraisal gap
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Notice of purchase requirement. Tarion. Purchasers must notify Tarion within 45 days of entering the agreement; requirement effective 1 April 2026, with deposit coverage consequences deferred to 1 January 2027. Accessed 30 August 2026.
- Deposit protection before you close. Tarion. Freehold deposit protection to a maximum of $100,000; condominium unit deposit protection of $20,000 plus limited accrued interest. Accessed 30 August 2026.
- Pre-possession coverage. Tarion. What the warranty covers before you take possession, including deposits and delayed occupancy. Accessed 30 August 2026.
- Bankruptcies, insolvencies and receiverships. Tarion. Tarion states this “may not be a complete list of current insolvency situations”. Accessed 30 August 2026.
- GTHA new condo sales increase over 50% in Q2. Urbanation, 20 July 2026. Q2 2026 data for the Greater Toronto and Hamilton Area, including the running cancellation total since the start of 2024. Accessed 30 August 2026.
- Condominium Act, 1998, S.O. 1998, c. 19. e-Laws. Section 73 sets the ten-day rescission right; section 80 governs interim occupancy and occupancy fees; section 81 governs money held in trust. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.