New house being sold without Tarion

I am looking at a new build in Toronto. During the negotiation process, my realtor found out that the house is not enrolled in Tarion warranty and instead, the builder themselves are offering a two-year warranty. After researching online, this seems like a major red flag as its illegal for new builds to not be enrolled in Tarion before sale. My agent and I have a meeting scheduled with the builder to discuss why this is the case and if theres any way we can enroll it before we buy it. Is this type of situation common in Toronto where smaller builders don’t enroll their new houses in Tarion before sale?