- How much does residential surety products cost in Brant?
- The cost of residential surety products in Brant depends on your specific details, coverage, and deductible. The best way to know is a free quote — as an independent broker we compare 17 insurers to find your lowest price.
- How do I get residential surety products in Brant?
- Request a quote online in minutes or call Insurabiz at 613-355-3130. We'll compare our full panel of insurers to find the right residential surety products for you in Brant.
- Why use a broker for residential surety products in Brant?
- A broker works for you, not one insurer. We shop the whole market at once to find the best residential surety products coverage and price in Brant — with local advice and an advocate at claim time.
- What is residential surety?
- Residential surety is the security home builders and developers post to guarantee their obligations to Tarion, purchasers and municipalities. In Ontario it usually means bonds that meet Tarion's security conditions, excess deposit insurance that protects purchaser deposits above Tarion's limits, and bonds that secure subdivision, servicing and site plan work in place of bank letters of credit.
- Does Tarion accept a surety bond as security?
- Yes. Tarion typically accepts a surety bond or a letter of credit in a Tarion-approved format, and a certified cheque if the security is $250,000 or less. The amount depends on Tarion's risk assessment, the builder's experience and the value of the homes. Security is usually due before the builder qualifies to sell or at enrolment.
- How much of a purchaser's deposit does Tarion protect?
- Tarion protects condominium deposits up to $20,000 per unit. For freehold homes under agreements signed on or after January 1, 2018, it protects up to $60,000 if the price is $600,000 or less, and 10% of the price to a maximum of $100,000 above that. Agreements signed earlier are protected up to $40,000.
- What is excess deposit insurance?
- It protects condominium purchaser deposits above Tarion's $20,000 limit. Ontario's Condominium Act requires deposits to be held in trust until they are paid out under the agreement or until the developer provides prescribed security for them. Excess deposit insurance is that security, which lets developers use deposits to help fund construction instead of leaving them in trust.
- Can I use a surety bond instead of a letter of credit for a subdivision agreement?
- In Ontario, yes. Under the Planning Act and O. Reg. 461/24, landowners and applicants may stipulate a surety bond to secure obligations a municipality requires as a condition of a planning approval. The bond must come from a licensed, highly rated insurer, pay the municipality on demand within 15 business days, and set out how its amount can be reduced.
- Why would a builder choose a bond over a letter of credit?
- A letter of credit usually reduces your available bank credit dollar for dollar while it is outstanding. A surety bond normally sits outside your bank facility, leaving more borrowing for land, construction and other projects. Either way, if the security is drawn you must repay the bank or the surety, so the risk of default stays with you.
- Do I need a licence before Tarion will set my security?
- Yes. Builders and vendors of new homes in Ontario are licensed by the Home Construction Regulatory Authority. Tarion can only issue its notice of proposal setting out conditions, including security, once you hold an active HCRA licence, and it requires the licence to stay active to maintain your qualification to sell and your enrolments.
- How do sureties qualify a developer?
- Sureties look at character, capacity and capital: the developer's track record, the experience of its team and builder, and its equity and liquidity. Expect to provide financial statements, a project pro forma, financing terms and presales figures. The project company, its parent and often the principals sign an indemnity agreement to repay any loss the surety pays.
