Ontario Condominium developers have two pieces of legislation to deal with when developing a new condominium project:
The Ontario New Home Warranties Plan Act:
And The Condominium Act:
Under the Ontario New Home warranties Plan Act, Tarion Warranty Corporation (www.tarion.com) requires the developer to provide security to guarantee the obligations of the vendor builder to both the purchasers and to Tarion.
The Condominium Act requires all purchasers’ deposits to be held in trust until such time as the prescribed security is issued. An insurance policy is deemed to be security for the purposes of the Act and permits those purchaser deposits to be used as a source of financing project costs.
Being its core developer surety business, Trisura offers both Tarion Bonds and Deposit Insurance Policies to condominium developers across Ontario. Both products are surety products and are supported with Indemnities and other security. Occasionally, other examples of developer surety business are entertained and these include Excess House Deposit insurance and Subdivision Bonds.