Who pays the Tarion enrolment fee — the builder or the buyer?

In Ontario, the obligation to enrol a new home with Tarion rests on the builder. However, builders routinely pass the Tarion enrolment fee to the buyer as a closing adjustment. This is a common practice that is typically disclosed in the purchase agreement or the Tarion addendum.

The enrolment fee is calculated based on the purchase price of the home and is paid to Tarion to cover the warranty program. Current fee schedules are available on Tarion's website. The fee is non-negotiable — it is a statutory requirement for new homes enrolled in the warranty program.

When reviewing your purchase agreement, look for the Tarion enrolment fee in the list of adjustments you will owe at closing. If it is there, it is a legitimate cost that you should budget for. Some buyers are surprised to see it on the Statement of Adjustments on closing day because it was not clearly explained at signing.

The enrolment fee is separate from the home's purchase price and from HST. It is a relatively modest amount compared to the total transaction, but it is part of the total closing cost calculation. Your lawyer will itemize it on the Statement of Adjustments and ensure the amount matches the applicable Tarion fee schedule.