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 ( 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.

Trisura is an approved issuer of Tarion Bonds by Tarion Warranty Corporation and is also a member of the Building Industry and Land Development Association (BILD) as well as the Ontario Home Builders’ Association (OHBA) We are supportive of our Broker network and willing to work with Broker’s in creating a solution to their condominium developers’ needs.

In addition, Trisura is prepared to support small to mid-sized developers and projects that are often not entertained by larger sureties.

Trisura’s management team has over 20 years of experience in underwriting of these products. Our team of construction experts can be of assistance and value in determining risk when providing Surety Bonds.

Tarion Warranty Bonds are typically required in the amount of $20,000 for each condominium unit to protect the condo buyer’s deposit in case the condominium project is not completed because the builder goes bankrupt; fundamentally breaches the purchase agreement or there is a statutory right to treat the purchase agreement as terminated.

The Bond may be required at the time of registration of the vendor/builder by Tarion or when the developer wants access to the Tarion insured deposits of $20,000. The Bond is held by Tarion until condominium registration of the project and then released once all obligations including financial are completed by the vendor/builder to both the purchasers and the condominium corporation as well as to Tarions satisfaction.

Excess Condominium Deposit Insurance (ECDI)
Condominium deposit insurance allows the developer to access deposits above the $20,000 insured by Tarion and use these funds to finance the project instead of incurring interest costs on operation loans. The policy protects the purchaser from loss of their deposits should the project not be completed or default on the deposit. Once the purchaser takes title to their unit, the policy is terminated.

Classes and Appetite

  • Our primary focus is low and high rise residential developers
  • We will entertain both condominium conversions and commercial condominiums
  • A strong financial position, both corporately and personally, is a must and the developer shall have a proven track record, which is supported by a knowledgeable, seasoned and competent development team.
1. The Developer Surety market is booming
The Developer Surety market isn’t showing any sign of slowing down. The demand for condominiums in the GTA remains strong and is outpacing the market for single-family homes.

2. Developer Surety bonds free up cash
All builders of new homes in Ontario must be registered with Tarion Warranty Corporation, which administers the Ontario New Home Warranties Plan Act. A Developer Surety bond removes the need for the builder to file a letter of credit for $20,000 per unit with Tarion, freeing up much needed cash.

3. Excess Condominium Deposit Insurance (ECDI) frees up even more money
By law all customer deposits must be held in a trust account unless they are secured (protected). If the developer wants to access the deposits to fund project costs, a Tarion bond and/or ECDI insurance can be posted as security to safeguard the funds. The bond also protects the homeowners during the warranty phase.

4. ECDI policies are good for the bottom line
Using deposits made available because of an ECDI policy to finance the project can significantly reduce the developer’s cost of borrowing, since the interest rates are much lower.

5. Tarion Bonds and ECDI form a powerful tool for profitable growth
The vast majority of condominium developers in Ontario use a combination of Tarion bonding and ECDI as a form of security. The bonds are tailored-made for condo developers and free up deposit funds while also responding to claims during the customer’s warranty period.