New Home Warranty – What You Need to Know

New Home Warranty – What You Need to Know

New home warranty has come up a few times in my career and I thought this topic was a good refresher to touch on.

All NEW homes built in Alberta require new home warranty coverage if the building permit was applied for on or after February 1, 2014. The New Home Buyer Protection Act requires builders to provide home warranty coverage on all new residential homes, including condominiums, manufactured homes and recreational properties.

So why does this matter for Real Estate Professional?

In effort to provide exceptional service and best practice, whether representing a buyer or seller, I check that all homes built after February 1, 2014, have registered warranties. Why, you ask? For that answer, let us look at what the New Home Warranty covers:

1. One year for labour and materials

Covers any defects in materials and labour related to how the home was constructed and materials used. This may include things such as flooring, staircases, baseboards, cabinets, railings and other trim and fixtures.

2. Two years for delivery and distribution systems

Covers defects related to the electrical, plumbing, heating, ventilation, and air conditioning delivery systems.

3. Five years for building envelope protection

The building envelope is the shell of the home, including the roof and walls. It is the separation between the interior and exterior environments of a building, which protects the indoor environment and facilitates climate control.

The act requires a minimum 5 years of coverage, with the requirement that warranty providers offer builders the option of purchasing an additional 2 years of building envelope coverage.

4. Ten years for major structural components

Major structural consists of the frame, including the roof’s structural integrity, and the foundation.

For me, I want to ensure any home that falls within the 10-year timeline of being built, the registration information is passed on to my client.

The New Home Warranty website outlines the role and responsibility a Real Estate Professional has when selling homes on or after February 1, 2014. Resource link below for reference.

https://www.alberta.ca/new-home-warranty-overview

What is important to note is that this is required even in RE-SALE. If you are working with on a purchase or sale where warranty is still available, it is always best practice to ensure that the warranty registration is passed on.

For anyone reading this, if you are thinking of purchasing a new or newer home, please use the resource links listed below and/or ask your real estate professional to do the same.

New Home Buyer Protection Act

https://www.alberta.ca/new-home-warranty-overview

https://www.reca.ca/2023/08/31/ensuring-buyers-of-homes-built-after-february-2014-are-protected/