The Tarion Warranty Corporation is a non-profit organization that was established in 1976 by the Ontario New Home Warranties Plan Act. It ensures that builders abide by the act and steps in to protect consumers when developers fail to perform their obligations. All residential developers in Ontario with active projects must be registered with Tarion.
In April 2018, the Home Construction Regulatory Authority (HCRA) was incorporated as a not-for-profit corporation. HCRA is expected to regulate builders and vendors of new homes if it is designated as the regulatory authority under the New Home Construction Licensing Act, 2017 (NHCLA). Tarion will continue to be the warranties and protections administrator for new homes in Ontario under the Ontario New Homes Warranties Plan Act. If passed, these changes are expected to take effect on February 1, 2021, at which time HCRA would begin its regulatory operations.
Applying for a Tarion bond is quite similar to applying to development financing company for project funding. The documents required are as follows:
We highly recommend you work with an experienced Developer Surety brokerage such as FCA to ensure you are receiving the possible best terms for your project.
Yes we do. All of our projects are offered this product in conjunction with their Tarion Marketing & Warranty bond. Please visit our Deposit Financing page to learn more.
As a long-standing surety brokerage we have excellent working relationships with all of the surety companies currently writing developer surety business in Canada. Our key partners include:
We know these companies well and understand their underwriting philosophies and principles. This is very important as no two sureties are alike. By understanding the appetites of each company, we are able to place our developer clients with the right surety partner. This ensures not only excellent terms but also a long-standing relationship that supports the growth and flexibility that our developers demand.
A Tarion Bond is not mandatory, but developers benefit from this type of bond because it eliminates the need to post a letter of credit or cash security Tarion.
Our organization has been working with FCA Surety Bonds and Insurance for over 2 years. The team, led by Jamie Collum and Warren Griffiths, exceeds expectation in service, responsiveness and knowledge.
Jamie and Mike from FCA did a great job in assisting me throughout the process. Not only from the bonding requirement with Tarion but also other aspects relating to obtaining project approvals and project insurance. Would definitely highly recommend them.
FCA is one of the best companies we have had the pleasure of working with so far. Very professional, fast and always on time. Looking forward to continue working with them.