- Tarion protection for new condo buyers includes deposit protection of up to $20,000 plus a limited amount of accrued interest.
- If occupancy is delayed, compensation is capped at $7,500 in total and claims have firm deadlines.
- Defect coverage and its time limits are set out in Tarion's warranty materials, so confirm them against your own paperwork.
Buying a new condo comes with protection through Tarion, and many owners are not sure what that protection covers or when to act. Some of it applies before you move in, and some applies after.
This article walks through the parts of the process that are well defined, such as deposits, critical dates, delay compensation and claim deadlines. For defect coverage and its time limits, check Tarion's current warranty materials and your Addendum, and ask a lawyer if you are unsure.
What the Tarion Addendum does
The Tarion Addendum is attached to your purchase agreement. Its Statement of Critical Dates sets the occupancy dates. A Final Tentative Occupancy Date must be set within 30 days of roof completion, and notice of a delay beyond the First Tentative Occupancy Date must be given at least 90 days before that date.
The Addendum also controls when a builder may cancel. Early termination conditions must be listed in Schedule A, clearly described and tied to a date, and conditions of a type not permitted are unenforceable.
Deposit protection
If a builder does not refund a condo deposit, Tarion's deposit protection covers up to $20,000 plus a limited amount of accrued interest. To claim, call Tarion at 1-877-982-7466 for a Deposit Refund Claim Form and submit it with the purchase agreement and cancelled deposit cheques. Assessment can take up to six months.
If a builder terminates, it must return the deposit in full within 10 days.
Delayed occupancy compensation
| Situation | What the buyer may receive |
|---|---|
| Occupancy delayed | Up to $7,500 in total, including a flat $150 a day for living expenses with no receipts, plus other costs such as moving and storage with receipts |
| Builder gives less than 10 days' notice of a delay | $1,500 |
| Unit not ready by the Outside Occupancy Date | 30 days to terminate, with a full refund of all money paid plus interest |
These figures come from Tarion's current pages and reflect an older Addendum framework, so confirm them against the Addendum attached to your own agreement.
Defects and warranty time limits
Once you take possession, how problems with your unit are handled depends on your situation, so it is worth confirming with a lawyer. The details of what counts as a covered defect, and the exact periods that apply, are set by Tarion's warranty materials and your documents. Confirm them there, or with a lawyer, rather than relying on a general summary.
Keeping a dated list of problems, with photos, makes it easier to report each one on time.
How to file and what to do next
Delayed occupancy claims go to the builder within 180 days of the occupancy date or termination date. If the builder does not pay, you can claim to Tarion during the first year of possession, or up to 365 days after terminating.
- Keep your agreement, Tarion Addendum and Statement of Critical Dates in one place.
- Record each date the builder gave you for occupancy and any delay notices.
- Keep receipts for moving, storage and other delay costs.
- Send your delay claim to the builder in writing within the deadline.
- If the builder does not pay, move to a Tarion claim before the Tarion deadline.
- Photograph and date any defects, and check Tarion's current materials for time limits.
Frequently asked questions
How much compensation can I get for a delay?
Delayed occupancy compensation is capped at $7,500 in total. It includes a flat $150 a day for living expenses with no receipts, plus other costs such as moving and storage, which need receipts.
What if the builder gives very short notice of a delay?
If the builder gives less than 10 days' notice of an occupancy delay, the buyer receives $1,500.
How long do I have to make a delay claim?
Claims go to the builder within 180 days of the occupancy date or termination date. If the builder does not pay, you can claim to Tarion during the first year of possession, or up to 365 days after terminating.
Where do I find the warranty time limits for defects?
They are set out in Tarion's warranty materials and your own documents. A lawyer can confirm which periods apply to your unit and what you must do to protect a claim.
Sources
- Tarion – Deposit Protection — tarion.com
- Tarion – Condominium deposits (builders) — tarion.com
- Tarion – Condo Units: coverage for occupancy dates, delays & cancellations — tarion.com
- Tarion – Condominium delayed occupancy — tarion.com
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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