{"id":906,"slug":"tarion-deposit-protection-condo-trust-20k-backup","title":"Condo deposit protection — held in trust under Condominium Act s.81; Tarion backs up $20K if trust fails","kind":"reference","scope":"business","status":"current","audiences":["kevin","smb-owner","candid-team","client-prospect"],"topics":["gc-vertical","tarion-warranty"],"reference_body":"**Claim:** Condominium deposits are protected differently from freehold deposits. Under **s. 81 of the Condominium Act, 1998**, condo deposits up to a defined project threshold must be held in trust by the builder. Amounts above that threshold must be covered by a Tarion deposit-insurance certificate. **If a deposit that should have been in trust was not, Tarion provides up to $20,000 of backup protection.**\n\n**Source:** <https://www.tarion.com/homeowners/pre-possession-coverage>\n\n**Confidence:** Verified.\n\n**If the APS is terminated:** the deposit must be returned in full within 10 days.\n\n**No change in April 2026:** the upcoming O. Reg. 17/25 deposit changes apply to **freehold** only. Condo deposit protection is unchanged. See [[tarion-april-2026-freehold-45-day-notice-rule]] for context.\n\n**Why this matters for buyer-facing content:** Many pre-construction condo buyers assume Tarion fully protects their entire deposit. The truth is more nuanced — most of the deposit is protected by the **trust mechanism** (which Tarion does not administer), with Tarion as a $20K backup. Strong marketing copy distinguishes the two.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"tarion-april-2026-freehold-45-day-notice-rule","title":"O. Reg. 17/25 freehold deposit change — from April 1, 2026, buyers must notify Tarion within 45 days of signing to qualify for full coverage; tier change deferred to Jan 1, 2027","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"}]},"created_at":"2026-05-24T14:19:39.466Z","updated_at":"2026-05-24T14:19:39.466Z"}