For most people, their home is the single biggest investment they will ever make. At Maple Brook Homes, we understand that buying a new home or condo is stressful enough. You don’t need the added concern of worrying about your deposit. But that worry is a reality for some homebuyers. But we have great news! Did you know that every new homebuyer who signs a purchase agreement and gives a deposit for a new home or condominium unit is protected? And you may ask yourself “Why would I need to be protected?” Well, there are numerous scenarios where you may need a little insurance to protect your hard-earned money. Namely:
- if the builder goes bankrupt
- the builder breaches the purchase agreement
- you have a statutory right to treat the purchase agreement as terminated.
Protection on the purchase of a freehold home
Signed the purchase agreement before January 1st , 2018? Then your deposit is protected by the Tarion Warranty Corporation up to a maximum of $40,000. If you signed on or after January 1st 2018 your deposit protection depends on the purchase price of your home. i.e. if your home cost $600,000 or less you’re covered up to $60,000. If it’s over $600,000 then you’re covered for 10% of the purchase price up to a maximum of $100,000.
Protection on the purchase of a condominium unit
If the purchase agreement is terminated by the builder, the deposit must be returned in full within 10 days. If it is not, Tarion provides protection up to $20,000. The key here is to consult a lawyer to ensure your deposit is covered by Tarion.
Regardless if you purchase a freehold home or a condominium unit, you can rest assured that Maple Brook Homes is working in your best interest to ensure this is the safest purchase decision you’ve ever made. For more information on how we’re protecting homebuyers across Southern Ontario contact us at info@maplebrookhomes.ca or for further details on the Tarion Warranty Program visit www.tarion.com
