{"id":903,"slug":"tarion-coverage-caps-post-july-2023-400k-300k","title":"Tarion coverage caps: APS on/after July 1, 2023 — $400K freehold / $300K condo unit / $100K × units common elements to $3.5M cap; $50M project cap","kind":"reference","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team","client-prospect"],"topics":["gc-vertical","tarion-warranty"],"reference_body":"**Claim:** Tarion post-possession coverage caps depend on when the Agreement of Purchase and Sale was signed.\n\n| APS signed | Freehold cap | Condo unit cap | Common-elements cap | Project cap |\n|---|---|---|---|---|\n| Before Feb 1, 2021 | $300,000 | $300,000 | $50,000 × units, max $2.5M | $50M |\n| Feb 1, 2021 – June 30, 2023 | $300,000 | $300,000 | $100,000 × units, max $3.5M | $50M |\n| **On/after July 1, 2023** | **$400,000** | **$300,000** | **$100,000 × units, max $3.5M** | **$50M** |\n\n**Sub-limits:**\n- **Environmentally harmful substances (radon, mould):** $50,000 for APS on/after Feb 1, 2021. Pre-Feb 2021 agreements had a $15,000 mould/radon cap.\n- **Septic systems:** $25,000 cap on pre-Feb 2021 agreements (subsumed into general coverage afterwards).\n\n**Source:** <https://www.tarion.com/post-possession-coverage>\n\n**Confidence:** Verified.\n\n**Practical context:** CBC Marketplace (Sept 25, 2024) profiled a couple whose 4-year-old Ontario home they described as a teardown. Tarion spokesperson Andrew Donnachie acknowledged the $300,000 max \"may not be sufficient to entirely remove a foundation, demolish a home and rebuild\" but described such cases as \"exceedingly rare.\" CPBH has argued caps remain insufficient for serious construction-defect remediation.\n\nSee also [[tarion-1-2-7-warranty-detailed-coverage-by-year]] for what the cap applies to.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"tarion-condo-common-elements-performance-audit","title":"Condo common-elements warranty — condo corporation files claims; performance audit in year 1 by board-retained engineer can itself be the warranty form","kind":"reference","scope":"business","link_type":"relates-to"}],"incoming":[{"slug":"research-brief-tarion-ontario-may-2026","title":"Research brief: Tarion Warranty Corporation — definitive reference (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"tarion-1-2-7-warranty-detailed-coverage-by-year","title":"Tarion 1-2-7 warranty in full — year-by-year coverage from possession through year 7 (workmanship, building envelope, distribution systems, MSD)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"tarion-msd-three-test-failure-function-use","title":"Major Structural Defect (MSD) — three-test framework (failure / function / use) defines what qualifies for year 3-7 coverage","kind":"reference","scope":"business","link_type":"relates-to"}]},"created_at":"2026-05-24T14:19:39.446Z","updated_at":"2026-05-24T14:19:39.446Z"}