Tarion sees ‘largest claim event’ in its history as more home-owners lose deposits due to builder failures [Video]

Ontario’s new-home consumer protection organization says it expects to pay home-buyers more than $90 million this year, the “largest claim event” in its history, in the wake of more receiverships and developers failing to deliver on residential projects.

In recent months, real estate experts have reported seeing an influx in residential development projects entering receivership and builders walking away from projects amid high interest rates and rising construction costs. Tarion, which was established to ensure builders follow through with their warranty obligations to consumers, said the “extraordinary claims event” last year was a result of “builder failures, receiverships, and illegal building and vending.”

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Although developers are required to abide by new-build warranties, if a builder fails to deliver a home to the purchaser and is unable to provide a refund, a deposit claim can be made by the buyer to Tarion.

According to Tarion, those who signed a purchase agreement after Jan. 1, 2018, deposits are protectedup …