Warranty protection for new home buyers starts February 1

The New Home Buyer Protection Act and supporting regulations will require builders to provide mandatory home warranty coverage for new homes built in the province of Alberta.

“Starting in February, we’re rolling out the strongest consumer protection in Canada for new home buyers. This legislation will help protect the single largest purchase that most people make…a home.”- Ken Hughes, Minister of Municipal Affairs

The legislation applies to newly constructed homes, including single family homes, multi-family homes, duplexes, condominiums, manufactured homes and recreational properties.

“Canadian Home Builders’ Association – Alberta members offered Canada’s first home warranties and are pleased all home buyers will soon be protected. We look forward to working with all stakeholders to make the program a success.”- Jim Rivait, CEO, Canadian Home Builders’ Association - Alberta

At minimum, all new homes will have the following warranty protection:

• one year labour and materials – this covers the way the home was built or the materials it was built with, such as flooring and trim;
• two years distribution systems – this covers the labour and materials related to heating, plumbing and electrical systems;
• five years building envelope protection – this covers the exterior shell of the home, including the roof and walls, and includes a requirement for the warranty provider to offer the consumer the option to purchase two additional years of building envelope coverage; and,
• 10 years coverage for key structural components, including its frame and foundation.

Homeowners will be provided warranty coverage by their builder, and will be given the option to purchase additional warranty coverage if they want it.

An easy-to-use public registry will be available starting February 1, 2014 at HomeWarranty.Alberta.ca. Homeowners will be able to use the registry to access important warranty information, such as key dates and contact information for their warranty provider, by simply typing in the address of their home. Albertans shopping for a new home will also be able to use the registry to find out if the home has a warranty and how much coverage remains.

Related links
HomeWarranty.Alberta.ca
Government introduces mandatory warranty protection for new home buyers (Oct 25, 2012)