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
Claim: Tarion post-possession coverage caps depend on when the Agreement of Purchase and Sale was signed.
| APS signed | Freehold cap | Condo unit cap | Common-elements cap | Project cap |
|---|---|---|---|---|
| Before Feb 1, 2021 | $300,000 | $300,000 | $50,000 × units, max $2.5M | $50M |
| Feb 1, 2021 – June 30, 2023 | $300,000 | $300,000 | $100,000 × units, max $3.5M | $50M |
| On/after July 1, 2023 | $400,000 | $300,000 | $100,000 × units, max $3.5M | $50M |
Sub-limits:
- 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.
- Septic systems: $25,000 cap on pre-Feb 2021 agreements (subsumed into general coverage afterwards).
Source: https://www.tarion.com/post-possession-coverage
Confidence: Verified.
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.
See also Tarion 1-2-7 warranty in full — year-by-year coverage from possession through year 7 (workmanship, building envelope, distribution systems, MSD) for what the cap applies to.
Referenced by (3)
- reference Research brief: Tarion Warranty Corporation — definitive reference (May 2026) relates-to
- reference Tarion 1-2-7 warranty in full — year-by-year coverage from possession through year 7 (workmanship, building envelope, distribution systems, MSD) relates-to
- reference Major Structural Defect (MSD) — three-test framework (failure / function / use) defines what qualifies for year 3-7 coverage relates-to