Ticking Clock — Why Tarion’s 45-Day Rule could reshape buyer protections and deposit risk

Tarion just put a clock on your buyers. Starting next year, freehold purchasers have 45 days to register for full deposit protection. Miss it, and they’re shuffled into a tighter safety net with stricter limits. Translation? Small form, firm deadline, big consequences.
Developers take notice, starting January 1, 2026, Ontario is rolling out a game-changer: freehold home buyers need to notify Tarion within 45 days of signing their Agreement of Purchase and Sale (APS) to get the full deposit protection. Miss that window? You still get protection, but under a special fund with tighter limits. The paperwork is light, the deadline is firm, and the stakes are higher than you likely think.
What’s Changing (The Rules)
  • Freehold purchasers must register with Tarion within 45 days of the APS to qualify for the maximum deposit protection.
  • If they don’t, they fall under a separate, limited fund (currently $10 million/year) for late or non-registrants.
  • Note: this is for freehold homes. Condos / contracts and other structures have different rules.
Why You Should Care (Beyond Compliance)
You might be thinking: “Okay, another date to chase. So what?” But here are why this small rule change has outsized consequences:
  1. Deposit Risk & Buyer Conversations
    Buyers who miss registering could get less protection. They’ll be more alert, more anxious, and more likely to ask tough questions. If you haven’t baked this into your sales process, you might see push-back, negotiation delays, or worse, trust erosion.
  2. Reputation Leakage Is Real
    Missed deadlines + “I didn’t know about the 45-day registration” = negative reviews, complain threads, maybe media. All of which live forever online. Developers who come off as “sloppy” here lose more than money — they lose future presales.
  3. Operational Risk & Process Breakdowns
    If you don’t have systems tracking purchasers, APS dates, whose registration is outstanding — you’ll scramble. Lawyers will get involved. Deposits might become “problem cases.” Also, when Tarion or HCRA audits compliance, inconsistent behaviour becomes a red flag.
How to Build a Hack-Proof Registration System
Here’s where most builders drop the ball — but where you can shine:
  • Add a clause in your APS that clearly includes the 45-day notice requirement. Ensure lawyers / sales teams know about it.
  • In your purchaser onboarding (first email, welcome pack, decor selection meeting), include a step: “Register your APS with Tarion by Day 30” as a friendly reminder.
  • Use your purchaser database (or software partner) to tag every new APS, record its date, and track whether the buyer has registered. Automated reminders at Day 30, Day 40, etc.
  • Train your sales / customer care / legal staff so they know what “deposit protection reduced fund” means in plain English — so they can explain it to buyers without letting it sound like a threat.
  • Audit your past APS agreements: are you including this notice already? If not, update immediately. (Better to fix now than face a clutch of buyer issues come 2026.)
Potential Case Scenarios
Here are two quick hypotheticals to show the ripple effects:
  • Builder A: APS template is updated, sales team includes registration info, welcome email includes a calendar invite. 90% of purchasers register by Day 30. Outcome: no deposit scare calls, strong buyer confidence, clean Tarion audit.
  • Builder B: APS has legalese, sales team thinks someone else will mention the registration requirement, no system to track registrations. Many purchasers miss the 45-day window. Outcome: some deposits are covered under limited fund, buyers call in panicked, negative reviews, extra legal / customer care overhead.
Lessons & Developer Hacks
  • Don’t assume buyers read your fine print. If you bury the 45-day requirement in legal text, you own the misunderstanding.
  • Make registration feel like a benefit, not a box to tick. “Submit this 45-day notice and enjoy full deposit protection” is better than “You must do this or…”
  • Use your CRM / database or partner software to automate reminders. If it takes manual work, it will fail 50% of the time.
This isn’t just a compliance checkbox. The 45-day Tarion notice requirement changes how your sales process, your reputational management, and your risk exposure all work. Developers who bake this into processes now don’t just avoid downside — they gain trust. And trust sells especially in pre-construction.

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