If a pre-construction project is cancelled
Doorvia Guides · July 10, 2026
Deposits carry statutory protection with limits, but you will not be compensated for the market you missed.
Projects do get cancelled, usually because financing, approvals or construction costs did not work. When that happens, your deposits are returned according to your agreement and the applicable statutory protections, which include Tarion deposit coverage up to defined limits and, for condominiums, trust requirements under the Condominium Act.
What you do not get back is time or opportunity. If prices rose while you waited, you buy in at the new level.
Reduce the risk before signing: choose developers with completed projects, ask your lawyer to confirm how deposits are held and insured, avoid over-concentrating in one launch, and be cautious with projects that have not obtained the approvals they are advertising.
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