Start Educating Clients Now: Change Coming for Ontario Home Buyers on July 1
Ontario home buyers will face a significant change starting July 1, 2025. Those purchasing new freehold homes must notify Tarion, the province’s new home warranty regulator, within 45 days of signing a purchase agreement if they intend to live in the property.
Implications for Home Buyers
This notification is crucial for securing warranty protections, including deposit protection, delayed closing compensation, and coverage for construction defects. Missing the 45-day deadline may result in complications or eligibility issues for warranty coverage.
Role of Real Estate Professionals
Real estate lawyers and agents are advised to educate their clients about this new requirement. Making this notification a standard part of the home buying process will help prevent clients from missing out on warranty protections.
Broader Policy Context
This change aligns with Ontario’s efforts to enhance consumer safeguards and transparency in homeownership. It complements federal and provincial initiatives targeting affordability and transparency for Canadian home buyers.
| Change | Who It Affects | Action Required | Deadline | Why It Matters |
|---|---|---|---|---|
| New Tarion notification | Ontario new freehold home buyers | Notify Tarion | Within 45 days of signing purchase agreement | Ensures access to home warranty protections |
Additional Reforms Supporting Home Buyers
In addition to the Tarion notification requirement, Ontario home buyers will benefit from several complementary reforms aimed at improving affordability and transparency. These include new mortgage rules, increased insured mortgage caps, and various homeownership incentives introduced by both provincial and federal governments.
Key Takeaway
As of July 1, 2025, all purchasers of new freehold homes in Ontario must notify Tarion within 45 days of signing their purchase agreement to secure their new home warranty rights. Real estate professionals are encouraged to proactively educate their clients about this requirement to ensure compliance and maximize consumer protection.
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Conclusion:
The implementation of the Tarion notification requirement, alongside complementary reforms, marks a significant step toward enhancing affordability and transparency for Ontario home buyers. By understanding and adhering to these new regulations, home buyers can better navigate the purchasing process and ensure they receive the protections and benefits they are entitled to. Real estate professionals play a crucial role in guiding clients through these changes, ensuring a smoother transition and fostering trust in the home-buying journey.
Frequently Asked Questions
What is the deadline for notifying Tarion about a new home purchase?
Home buyers must notify Tarion within 45 days of signing their purchase agreement to secure their new home warranty rights.
How does the Tarion notification requirement benefit home buyers?
The requirement ensures that home buyers are aware of and can access their new home warranty protections, providing clarity and consumer protection in the home-buying process.
What other reforms are supporting home buyers in Ontario?
In addition to the Tarion notification, reforms include new mortgage rules, increased insured mortgage caps, and various homeownership incentives from provincial and federal governments.
When do these changes take effect?
The Tarion notification requirement for new freehold homes in Ontario takes effect as of July 1, 2025.
What happens if a home buyer misses the 45-day notification deadline?
Missing the deadline may result in the loss of new home warranty rights, so it is crucial for buyers to notify Tarion promptly after signing their purchase agreement.
