What can Tarion do if my builder simply refuses to close on my new home?

If your registered builder refuses to complete the transaction and deliver your home, Tarion's statutory warranty program provides protection through the deposit warranty and, depending on the circumstances, the delayed-closing or non-completion warranty.

The deposit warranty covers your deposits up to the prescribed limits if the builder fails to complete the home, fails to give you possession, or breaches the agreement in a way that entitles you to rescind and recover your deposit. You file a warranty claim with Tarion, and after Tarion verifies your entitlement, they will issue a refund of the protected deposit amounts.

For losses above the deposit protection limit, you may need to pursue the builder directly through litigation or through insolvency proceedings if the builder is insolvent. Recovery in those situations is uncertain and depends on the builder's financial position.

Before concluding that the builder has refused to close, review your agreement carefully with a lawyer. Agreements often give builders certain rights to extend or modify closing conditions. Understanding whether the builder's conduct is actually a breach — rather than a permitted action — affects your remedies. Contact a real estate lawyer as soon as a dispute about closing arises.