- Which extra charges a builder may add on closing depends on your agreement of purchase and sale and the Tarion Addendum, not on one fixed list.
- The Tarion enrolment fee is paid by the vendor, but vendors commonly pass it to buyers in the statement of adjustments.
- Tarion protects new-home deposits and provides delayed closing compensation of up to $7,500 in some cases.
New-home buyers are often surprised by the final bill. Beyond the price, the statement of adjustments may include charges such as development charges, utility hook-ups or lot grading, and it can be hard to tell which are fair.
There is no single government list of what a builder may charge. This article explains what you can check, which items are known, and how to question the rest.
What the statement of adjustments does
The statement of adjustments is the closing accounting that shows the amounts owing between you and the builder, with credits for things like your deposit. Its contents come mainly from your agreement of purchase and sale, not from a statute.
Whether a builder may pass on a charge such as development charges or utility hook-ups depends on what your agreement and the Tarion Addendum say. If a charge is not clearly covered, ask your lawyer to review it before closing.
Charges you may see
| Charge | What to know |
|---|---|
| Tarion enrolment fee | A one-time fee payable by the vendor, which vendors commonly pass to buyers in the statement of adjustments |
| Development charges | Depends on your agreement and the Tarion Addendum |
| Utility hook-ups | Depends on your agreement and the Tarion Addendum |
| Lot grading | Depends on what your agreement says the price includes |
| Upgrades | Included in the value of the consideration for land transfer tax |
From September 1, 2025, the Tarion fee schedule includes a $55-per-home adjustment, and the average fee is $1,790. There is no change for homes priced at $550,000 or below.
Protections that apply to new homes
For agreements signed on or after January 1, 2018, Tarion protects deposits. For freehold homes, a deposit is protected up to $60,000 if the price is $600,000 or less, and above $600,000 protection is 10% of the price to a maximum of $100,000. For condominium units, protection is up to $20,000 plus limited accrued interest.
If a builder misses the firm closing date (freehold) or firm occupancy date (condo) without a mutual extension or an unavoidable delay, the buyer gets delayed closing compensation of up to $7,500. This includes $150 per day for living expenses with no receipts needed, and other costs such as moving or storage are covered with receipts.
Budgeting for the rest of closing
Closing costs are one-time fees such as inspection fees, legal fees, property tax adjustments and title insurance. The Financial Consumer Agency of Canada suggests budgeting 1.5% to 4% of the purchase price.
Land transfer tax is calculated on the value of the consideration, which includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades, but not HST paid on the purchase price. Toronto buyers should also ask about the City's separate municipal land transfer tax.
What to do next
- Ask for a draft statement of adjustments well before closing.
- Compare each charge to your agreement and the Tarion Addendum.
- Ask the builder in writing to explain any charge you cannot find in the agreement.
- Keep records of upgrades and extras you paid for.
- Have your lawyer confirm what is allowed before you sign closing documents.
Frequently asked questions
Can a builder charge me development charges on closing?
It depends on your agreement of purchase and sale and the Tarion Addendum. Have your lawyer check the wording before closing.
Who pays the Tarion enrolment fee?
It is a one-time fee payable by the vendor, though vendors commonly pass it to buyers in the statement of adjustments.
What if my builder delays closing?
If the builder misses the firm closing or occupancy date without a mutual extension or unavoidable delay, you may get delayed closing compensation of up to $7,500.
Is my deposit protected on a new home?
Tarion protects deposits for agreements signed on or after January 1, 2018, up to limits that differ for freehold homes and condominium units.
Sources
- Ontario Ministry of Finance – Calculating land transfer tax — ontario.ca
- Financial Consumer Agency of Canada – Buying a home — canada.ca
- Tarion – Coverage before you close — tarion.com
- Tarion – Implementing Updated Enrolment Fee Schedule — tarion.com
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
Start a file online — flat, published fees, reviewed by a licensed lawyer before a dollar is owed.