Buyers in Alberta will now receive mandatory warranty protection under the New Home Buyer Protection Act.
The legislation, implemented on February 1, applies to newly constructed single-family homes, multi-family homes, duplexes, condominiums, manufactured homes and recreational properties.
Under the act, all new homes have the following minimum warranty protection:
- One year labour and materials (the way the home was built and the building materials)
- Two years distribution systems (labour and heating, plumbing and electrical materials)
- Five years building envelope protection (the home’s exterior, including roof and walls)
- 10 years structural components (the home’s frame and foundation)
Coverage will be provided by the home builder, and buyers will have the option to purchase additional coverage.
“Starting in February, we’re rolling out the strongest consumer protection in Canada for new home buyers,” says Ken Hughes, Alberta’s Minister of Energy. “This legislation will help protect the single largest purchase that most people make.”
The Government of Alberta is committed to ensuring that home builders and warranty providers comply with the new act and significant fines will be issued for those who do not. First time offenders can be fined up to $100,000, while further offences can hit up to $500,000.
