Deposit Protection and Refunds
It is important to read your purchase agreement carefully and seek legal advice to understand the conditions which may allow the builder to terminate the purchase agreement.
These conditions may include:
- failure to sell enough units
- inability to secure financing for the project
- delays in obtaining the required building or planning approvals
If a pre-construction condominium project is cancelled, buyers are entitled to receive their deposit back with any interest under section 19(3) of Ontario Regulation 48/01. The amount of interest owing is calculated using the Bank of Canada’s overnight interest rate, minus two per cent.
Tarion protects deposits by a purchaser of a condominium unit up to a maximum of $20,000. For more information on condominium cancellations and deposits, please visit Tarion’s website.