Tarion is taking action to address illegal activity and protect current and future new home purchasers.

Announced in 2025 – and starting April 1, 2026 – freehold home purchasers will need to provide notice of their new home purchase to Tarion within 45 days of entering into an agreement of purchase and sale with a vendor/builder.

This important change will allow Tarion to quickly identify illegal builders who are taking deposits from consumers, and enable action to be taken earlier to protect consumers and the industry from rogue actors.

A new Warranty Information Sheet which reflects the new requirement to register will also be available April 1, 2026 for builders to use for all new home sales on or after that date.

Purchasers can register with Tarion using a simple and quick online portal which you can find here. To make it easier for purchasers, professionals such as lawyers or realtors can assist with registering the purchase or register on their behalf.

To allow time for consumers to be aware of the changes, Tarion is implementing a transition period and will defer the changes to deposit coverage until January 1, 2027.

If you have any questions about this policy please refer to the information page.

Effective March 1, 2026, the following positions are included in O. Reg. 386/12: Commissioners and other persons who may take affidavits under the Act, subject to the limitations stated in the regulation, and will no longer have to apply to the ministry for a commissioner appointment:

• First Nation Officers and Police Officers;
• Students at Law (articling students or those enrolled in the law practice program);
• MPP constituency office staff;
• First Nation Chiefs and Council Members;
• ServiceOntario staff (public servants only); and
• Conservation Reserve Managers, Park Wardens, Superintendents, and Assistant Superintendents.

Accordingly, effective March 1, 2026, Students at Law will be designated as commissioners for taking affidavits for the duration of their employment/role and can begin taking affidavits and administer oaths, affirmations or declarations for the purposes, and subject to any limitations, specified in the regulation.

The relevant new provision in the regulation reads:

Commissioners by virtue of office

1. (1) The following, by virtue of office, are commissioners for taking affidavits in Ontario:
…

4.2. Persons who have entered into service under articles of clerkship or the law practice program under the Law Society Act, but only in connection with work done as part of the clerkship or program.

Students at Law’s commissioning authority is subject to any applicable internal organizational requirements, such as conflict of interest rules, internal policies, by-laws and/or direction, and there is no obligation that they use this authority if they are not directed to do so as part of their role and responsibilities. Once an individual is no longer employed in the position specified in regulation, they no longer hold this authority under the Act.

As a commissioner by virtue of office, there is no requirement to use a stamp when commissioning. However, commissioners by virtue of office may choose to use a stamp to more easily identify themselves and the documents they commission for verification and/or authentication purposes. The ministry has developed an example of stamp wording for Students at Law in the accompanying appendix. The example is for information and illustration purposes only. It is up to the commissioner to determine the appropriate stamp wording, should they choose to use a stamp, and this wording does not need to be reviewed or approved by the ministry. Stamps can be made and purchased at an office supply company.

The ministry has a guide for newly appointed commissioners for taking affidavits in Ontario on its website.

On January 6, 2026, two new regulations were filed to amend the Rules of Civil Procedure, R.R.O. 1990, Reg. 194.

First, Ontario Regulation 2/26 introduces restrictions on parties’ choice of court location and increases judicial authority to transfer proceedings to a new location.

In summary, O. Reg. 2/26 updates Rule 13.1 in two key respects:

Rule 13.1.01: Replaces the existing freedom that plaintiffs and applicants have to choose a court location (unless a statute or rule provides otherwise) with a new requirement for the plaintiff or applicant to commence their proceeding in a court location with which there is a rational connection, on the basis of factors set out in existing rule 13.1.02(2)(b).

Rule 13.1.02: Replaces the existing authority of a Regional Senior Judge (RSJ) to transfer a proceeding to another court location within their region on their own initiative (i.e. without requiring a motion by a party) with a broader authority of any judge or associate judge to transfer a proceeding commenced at their court location to any other court location in the province on their own initiative, on the basis of the existing factors in rule 13.1.02(2)(b). The amendments also clarify that the hearing previously required before the RSJ made a transfer order continues to be required for all judges contemplating a transfer and specifically designate the hearing as a case conference.

As a housekeeping matter, O. Reg. 2/26 also revokes a prior commencement provision that was already marked as spent.

The amendments in O. Reg. 2/26 respecting judicial authority to transfer proceedings came into force on the day of filing (January 6, 2026), and the amendments respecting parties’ obligation to select a rationally connected venue will come into force on February 1, 2026.

Second, Ontario Regulation 3/26 introduces specialized forms for use in various types of motions during appeals in the Court of Appeal and Divisional Court, to support clarity for users. The new forms mirror the existing generic motion form (Form 37A). However, the title of each new form states the type of motion in which it is to be used, the forms contain fillable fields specifically designed for parties in appeal proceedings, and the options for methods of attendance are tailored to the particular court and hearing type. The existing notice of appeal forms have been similarly reformatted, as well as being renumbered.

In summary, O. Reg. 3/26 introduces or modifies the following 8 forms, prescribed in the indicated rules:

Rule 61.03: New Form 61A Notice of Motion for Leave to Appeal to the Divisional Court

Rule 61.03.1: New Form 61A.1 Notice of Motion for Leave to Appeal to the Court of Appeal

Rule 61.04:

• Renumbered and revised Form 61A.2 (Notice of Appeal to the Court of Appeal – previously Form 61A)
• Renumbered and revised Form 61A.3 (Notice of Appeal to the Divisional Court – previously Form 61A.1)

Rule 61.16:

• New Form 61M Notice of Motion Before a Single Judge – Court of Appeal
• New Form 61N Notice of Motion Before a Single Judge – Divisional Court
• New Form 61O Notice of Motion Before a Panel – Court of Appeal
• New Form 61P Notice of Motion Before a Panel – Divisional Court

Reg. 3/26 also includes:

• Complementary amendments to clarify the form to be used to seek leave to appeal to the Divisional Court in specific circumstances under the Class Proceedings Act and the Rules of Civil Procedure (rules 12.06 and 62.02) or to seek leave to apply for judicial review (rule 68.01); and
• Housekeeping amendments to reflect the creation of new notice of motion forms and to correct French terminology (rules 37.01, 37.06, 37.10).

The new and revised forms are available for download on the Ontario Court Forms website.

The amendments in O. Reg. 3/26 and the incorporated forms will come into force on February 1, 2026.

A summary of O. Reg. 2/26 and O. Reg. 3/26 is available on the Regulatory Registry at: 26-MAG001.

Banks have an obligation to provide the PCRN to any recipient on request but often fail to do so. I understand that users of ScotiaConnect automatically get the PCRN with their notification of a deposit. You should be asking your bank to do the same.

The interim alternative is for lawyers to help each other by providing the other side with the receipt of the funds they are sending that includes the PCRN.

Where is the PCRN?

If you are sending a transfer (“wire”) from your bank provided portal, after you have successfully sent the transfer, you need to go back into the portal, drill down and find the PCRN. The PCRN is a 16 alpha-numeric code that starts with “LVTS” + 12 more numbers or letters.

Here is how you find the PCRN in your system. This information has been verified by individual users. If your experience is different, please email me – ray.leclair@lawpro.ca. We have not received confirmation for RBC or CIBC portals. If you are a user, please email me with how the instructions below are different.

ScotiaBank users (ScotiaConnect)

1. Log in to ScotiaConnect
2. Click on the “Payments” tab
3. Click on the “Payment search” option
4. Select the date range [from] and [to] dates
5. Scroll down to view the payment results
6. From the results list, select the payment you want to find the PCRN number for
7. Scroll down to view the PCRN number starting with LVTS. Note the PCRN number may take some time to appear after the wire completes.

TD (Web Business Banking / Business Central)

1. Sign in → Wires → Activity List → Sent to Bank → OK
2. Find relevant wire in list → Click on ”Successful” → Print this Page
3. If status is “Accepted” wait for it to change to “Successful” (may take 20-30 minutes). (TD Bank)

BMO (Online Banking for Business OLBB)

1. Sign in → Payments & Receivables → Wire Payment → Manage Wire Payments
2. Open the wire details/receipt; the LVTS/PCRN appears once settled. (Appears as a Wire Reference Number starting with LVTS). If you can’t see it in OLBB, contact BMO OLBB support to have them provide the PCRN for the transaction. (BMO)

CIBC (Cash Management Online / SmartBanking) Not verified. Seeking a user to confirm

1. Sign in → Payments → Wire Payments → History/Reports
2. Open the transaction details or the wire report/statement; the PCRN/LVTS will be present after settlement. If not visible, ask CIBC business support to provide the PCRN. The CBA confirms major banks can retrieve the PCRN. (CIBC Asset Management, CIBC, Canadian Bar Association)

RBC (RBC Express) Not verified. Seeking a user to confirm

1. Sign in → Payments → Wire Payments → History/Track Wires (RBC Express supports real-time tracking)
2. Open the completed wire; look for LVTS/PCRN in the details or on the Wire Activity Report/receipt
   If only a “Bank Reference” shows, call RBC Express Client Support and ask for the Lynx PCRN tied to that wire. (RBC, Retail Banker International)

We can all help each other increase the transparency of our banking system and give comfort to the recipients that they are receiving good irrevocable funds. This can help banks limit or not place holds on funds as they can be confident that they are good funds. This should help reduce the time it takes for money to be deposited into the recipient’s account.

This article is by Ray Leclair, VP, Public Affairs at LAWPRO (ray.leclar@lawpro.ca)

What to know:

• Lawyers acting for sellers or purchasers based on a forced sale should be mindful of this information gap and verify if a declaration has been filed or if there is an eligible exemption available.
• Purchaser’s lawyers should requisition the prior year’s Vacant Home Tax be paid to avoid their client becoming liable for the seller’s tax and to obtain a copy of any court order for possession to assist in any appeal of the tax.
• Keep this in mind in other municipalities that have Vacant Home Tax: Ottawa has a Vacant Unit Tax (VUT). Hamilton has a Vacant Unit Tax (VUT). Windsor has a Vacant Home Tax (VHT). Sault Ste. Marie has a Vacant Home Tax (VHT).

How the Vacant Home Tax works:

Residential property is vacant if not occupied for six months or more during the taxation year. A property will be deemed vacant if the owner fails to make a declaration of occupancy status by the deadline, end of April of each year. There are eligible exemptions.

The City advises that the tax is due as of June 1 of each year with the invoice posted to the tax roll in May after the end of the filing period in April. The tax was 1% for the 2022 and 2023 taxation years and now 3% of the current value assessment since the 2024 taxation year.

Any sale closing after June 1st, and possibly earlier in May, would be notified of the tax by doing a tax search as it would be noted on the tax certificate. For any owner/resident selling their property, they would most likely have filed the declaration as to avoid any tax.

The issue arises for forced sales where the owner/resident may not be occupying the property and would have little interest in filing a declaration to avoid the tax. To make the annual declaration, you require the customer number plus the address or 21-digit assessment roll number from the property tax bill, property tax account statement or Vacant Home Tax notice. Declarations of occupancy status can be submitted either by the property owner or an authorized representative acting on their behalf.

Lenders who are enforcing on their security will typically not file a declaration as the authorized representative of the owner; nor will they provide any representation as to the tax status of the property as part of the sale process. This can create a situation where due to timing, there may be a blind spot as to the Vacant Home Tax status.

You can look up the current occupancy status of a property by using the Property Tax Lookup tool and scrolling down to the Vacant Home Tax accordion, but you will require the Assessment Roll No., Last Name or business name as it appears on the bill, postal code of the mailing address and/or Customer No.

Vacant Home Tax invoices for the prior year are posted by June 1st of the next year. If closing is scheduled in the New Year, prior to sometime in May when invoices are posted, the seller’s lawyer will pay any outstanding taxes as noted in their tax certificate, which will not include the previous year’s Vacant Home taxes. The purchaser’s lawyer doing a search and getting a tax certificate will not be apprised of the exigible Vacant Home Tax. The purchaser will, however, after June 1st get a tax bill from the City indicating the outstanding tax.

Although a new owner benefits from an exception for any tax owing in the year they bought, the exemption does not apply to prior years:

“The closing date of the purchased property was in the taxation year being declared. The sale involved a 100 per cent transfer of the property.”

There is also an exemption if there is a court order that prohibits occupancy of the vacant property for at least six months of the taxation year. In the case where the lender obtained an order for occupancy of the vacant property prior to June of the prior year, this could provide the new owner with the basis for an exemption. Purchasers typically will not have a copy of this order, which they will be required to provide to the City to have the exemption approved.

The City indicates that tax certificates come with a standard proviso, in a section titled: Important Notes, one of the notes states:

“This certificate may not include any Vacant Home Tax amount that is owning and which has not yet been added to the Collector’s Roll at the date of the certification. Additional information may be obtained by calling 311 within Toronto or 416-392-CITY (2489) outside City limits.”

Title insurance may cover the outstanding vacancy tax for the previous year as a matter that is possible to be a lien even if it is not disclosed or discoverable at the time.

In foreclosure proceedings, the lender becomes the owner and would be responsible for the tax, unless they sell shortly after acquiring title and before the invoices are posted.

Lenders exercising their power of sale will pay any outstanding taxes, but the prior year’s Vacant Home Taxes will not yet have been assessed and will be missed. The purchaser’s lawyer’s search will not disclose any outstanding Vacant Home Tax. During this period of time, the Vacant Home Tax is not disclosed by any City’s documentation and the purchaser will then inherit the outstanding taxes.

For convenience the definition of vacant property and the eligible exemptions.

The civil proceedings AI practice directions can be found here.

The family proceedings AI practice directions can be found here.

Date: Monday, November 24, 2025
Time: 10:00 AM – 12:00 PM (ET)
Location: Online (Zoom)

Register at either of these links for free : TAS Registration Page | OBA Registration Page

The change is intended to provide the public with quicker and more affordable Court based dispute resolution for claims up to the new $50,000 limit. The government has also indicated that claims commenced in Superior Court will be able to transfer to the Small Claims Court branch of the Court if it falls within the monetary threshold.

Lawyers should consider the impacts this claim limit increase may have for ongoing and potential new actions where the value is around $50,000. For instance:

(i) For actions already commenced in Superior Court: Consideration may need to be given to whether to recommend to clients to transfer the case to Small Claims Court. The transfer to Small Claims Court may depend on, for example:

• the value of the claim
• the stage of the proceeding
• any strategic benefits and risks to remaining in the Simplified Process
• the potential for costs awards for or against in Superior Court, and
• the process and costs associated with transferring to Small Claims Court.

(ii) For potential claims over $50,000

Where a claim may be marginally over $50,000, lawyers may want to consider the benefits and drawbacks of abandoning an interest in any amount above $50,000. If abandoning any claim for higher amounts, make sure this is understood by your client. Confirm instructions related to abandoning amounts in writing. If the Small Claims Court is not appropriate given the value of the claim, consider proceeding by Simplified Procedure.

In addition, the minimum claim amount eligible for appeal to Divisional Court was raised from $3,500 to $5,000.00. Previously, in 2020, the threshold increased from $2,500 to $3,500.

Following the Notice to Profession distributed last week regarding the upcoming implementation of the Courts Digital Transformation (“CDT”) in Toronto for all Family and Civil proceedings (including Bankruptcy, Commercial List and Contested Estates), Small Claims Court proceedings and Divisional Court proceedings and Enforcement on October 14, 2025, please be advised that the Consolidated Regional Practice Direction for Toronto and the Consolidated Practice Direction for Divisional Court Proceedings have been updated (and which can be accessed on the Court’s website). Counsel and litigants should consult the applicable practice direction for their cases.

As a reminder, for parties and their representatives, a new account will be required the first time the Ontario Courts Public Portal (OCPP) is used. Counsel and litigants can access guides on using the OCPP including the Quick Reference Guide, instructional videos and other resources to support use of the new portal which can also be found on the Court’s website here.

[October 3, 2025 notice]

On behalf of Chief Justice Morawetz and Regional Senior Justice of the Toronto Region, Justice Firestone.

Dear Members of Bar Organizations and Associations,

We are pleased to announce the upcoming implementation of the Courts Digital Transformation in Toronto for all Family and Civil proceedings (including Bankruptcy, Commercial List and Contested Estates), Small Claims Court proceedings and Divisional Court proceedings and Enforcement on October 14, 2025. Please find attached the Notice to Profession outlining important details with respect to this implementation including filing limitations during the transition period between October 3rd and October 13th which can also be accessed on the Superior Court’s website.

The regulator, Real Estate Council of Ontario (RECO), closed the brokerage, iPro Realty Ltd. (iPro), effective August 19, 2025.

iPro had 17 offices and 2,400 agents. There was a regulator approved sale of iPro’s assets to a new brokerage, iCloud Realty Ltd. The information indicates that there may be a shortage of trust funds for deposits collected.

RECO advises that all transactions will close as usual notwithstanding these events, advising:

“For commissions that are payable to iPro Realty, please make the cheque out to iPro Realty Ltd. and send the cheque to Dipak Parmar at RECO.
Attn: Dipak Parmar
Real Estate Council of Ontario
1400-3300 Bloor St W, West Tower
Toronto ON M8X 2X2
Please send an email to Dipak when the cheque has been sent (dipak@reco.on.ca) and provide copies of the Agreement of Purchase and Sale, the confirmation of Cooperation and Representation and trade record sheet, if one exists, in the email if available.”

Purchasers typically pay a deposit with the offer to the listing brokerage, iPro in this case. On closing, the purchaser is given credit on the statement of adjustment for the deposit they paid. The brokerage credits the seller for the amount of the deposit, up to the amount of the commission and HST on the transaction, with the seller’s lawyer paying any balance to the brokerage. Brokerages send the seller’s lawyer a commission invoice confirming any balance required.

The OREA agreement of purchase and sale (APS) provides an irrevocable direction to the seller’s lawyer to pay the commission out of the sale proceeds:

“I, the Undersigned Seller, agree to the above offer. I hereby irrevocably instruct my lawyer to pay directly to the brokerage(s) with whom I have agreed to pay commission, the unpaid balance of the commission together with applicable Harmonized Sales Tax (and any other taxes as may hereafter be applicable), from the proceeds of the sale prior to any payment to the undersigned on completion, as advised by the brokerage(s) to my lawyer.”

This direction has been upheld in court as being an absolute obligation of the lawyer, even in the face of instructions from the client not to pay the agent’s commission.

Commission invoice?

If you are unsure as to whether there is commission due on closing or have not received an invoice then in advance of closing, please contact Jai Walia (jaiandella@iprorealty.com) and provide the particulars regarding the transaction including the names of the purchaser and vendor, the address of the property and the identity of the cooperating brokerage.

The balance of any commission should be remitted to RECO as noted above. If there is a surplus deposit over the commission + HST, it should be remitted to the seller, however, the seller will have to file a claim with RECO for the return of that surplus.

RECO recommends that you download a Consumer Deposit Claim Reporting Form or contact RECO and request that a claim reporting form be emailed to you. Complete and submit the signed Claim Reporting Form to the Insurance Department at insurance@reco.on.ca. The claim should be filed as soon as you have the documentation.

Lawyers acting for a seller should have a fulsome discussion with their clients about closing the transaction that involves iPro and get their instructions to proceed.