Prior to approving a vendor or builder application, Tarion will conduct a risk assessment to determine whether any terms and conditions of registration, such as security, will be required.
Applicants will be notified by letter of any terms and conditions that apply to their registration. Letters must be signed and returned to the Tarion Licensing and Underwriting Department before an application can be processed.
Terms and conditions of registration often include the requirement to provide security. Builder Bulletin 28 describes the risk assessment process and levels of security.
For Condominiums, security is required prior to the registration or sale of any condominium units. Enrolment will not be approved until the required security is provided to Tarion. Upon submission of security in the form of a bond, letter of credit or cash, condominium builders will receive a copy of the deposit receipt.
For freehold homes, if security is required, it must be posted when a new home is enrolled.