Deposit Insurance

A builder will always request that you make a deposit on your new home and many will require partial payments throughout the construction period.

In some cases, the deposit is staggered. For example, 10% of the purchase price is required with acceptance of an offer and a further 30% paid 90 days after the offer is accepted, etc. The total deposits can add up quickly and may exceed the amount insured by the TARION New Home Warranty Program. The TARION Program will protect your deposit on a new freehold home to a maximum of $40,000 per home. Consequently, with the assistance of your lawyer, you should amend the offering agreement to ensure that any deposit monies in excess of $40,000 are to be payable to the builder's lawyer, in trust, and be released only upon the final closing of the real estate transaction.