In Alberta, the New Home Buyer Protection Act (the “Act”) makes it compulsory for builders to provide warranties for new homes to their buyer clients. The warranty will cover new single-family homes, duplexes, multi-family homes, condominiums, manufactured homes and recreational properties.
The Act was introduced to improve residential construction quality and increase consumer protection for new home buyers. Though the government regulates the program, coverage is offered by warranty providers that do business in Alberta. There are currently 7 warranty providers that builders may partner with to offer you coverage; for example, The Alberta New Home Warranty Program, Travelers Insurance Company of Canada and Millennium Insurance Corporation.
Your new home warranty will offer, at least, the following coverage:
- 1-year coverage for defects in labour and materials (ex: flooring and fixtures);
- 2-year coverage for defects in labor and materials related to delivery and distribution systems (heating, electrical and plumbing systems);
- 5-year coverage for defects in the building’s envelope (ex: the roof, window installation, wall framing and cladding); and
- 10-year coverage for structural defects (ex: foundation walls, load bearing walls, beams and footings).
Lastly, the introduction of the Act has resulted in the creation of an easy-to-use online registry to help find information about your new home warranty and the contact information for your warranty provider. Builders input warranty information for any new homes built after February 1, 2014 into the online registry, which can then be accessed, at a later date, by their buyer clients or the general public. The online registry can be accessed through the following website – http://homewarranty.alberta.ca/public-registry/.
If you have any questions concerning the Alberta new home warranty system, please do not hesitate to contact Khemka Law or counsel of your choosing. We are always here to assist you and your clients. Thank you for your time and consideration.
Pranav Khemka, Barrister & Solicitor
T: (403) 457-9577 | F: (403) 457-9578
Suite 202, 5403 Crowchild Trail NW, Calgary, AB T3B 4Z1 | T: (403) 457-9577 | F: (403) 457-9578
LEGAL: The Thursday Tidbit provides general information and does not constitute legal advice. Circumstances may vary and no lawyer-client relationship is established from the use and reliance of this information. You are strongly advised to seek any legal advice by directly contacting Khemka Law or counsel of your choosing. Khemka Law does not warrant or guarantee the quality, accuracy or completeness of any information found within this Thursday Tidbit.