Ontario Enhances New Homebuyer Protections with Updated Warranty Program
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Ontario is enhancing protections for new homebuyers through updates to its new home warranty program, effective July 1, 2025. Buyers of new freehold homes are encouraged to register their purchase agreements within 45 days to qualify for maximum deposit protection coverage. This initiative aims to combat illegal home sales and bolster consumer confidence by enabling early identification of non-compliant builders. The registration process is straightforward and can be completed online at no cost.
The warranty program provides comprehensive coverage, including deposit protection, delayed closing compensation, and protection against construction defects. Registering the purchase agreement links the buyer to their future home in the system, facilitating prompt action if issues arise. While all new homebuyers will continue to receive deposit coverage, those who register within the specified timeframe will be eligible for the maximum coverage available.
Industry professionals, such as builders, real estate agents, mortgage brokers, and lawyers, play a crucial role in educating clients about the importance of registration. By assisting buyers in the registration process, these professionals contribute to a safer and more transparent housing market. The collaboration between consumers and industry stakeholders is vital in ensuring the success of these enhanced protections.
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