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Province rolls out warranty protection for new home buyers
Starting on February 1, 2014, builders of new homes will be required to provide home warranty coverage.
Colleen Schmidt, CTV Calgary
Published Thursday, January 30, 2014 4:10PM MST
Home builders in Alberta will have to provide buyers of new homes with warranty coverage starting February 1, 2014.
The province says 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.
“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,” said Ken Hughes, Minister of Municipal Affairs.
The legislation will apply to newly constructed homes and includes; 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,” said Jim Rivait, CEO, Canadian Home Builders’ Association.
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
- Ten years coverage for key structural components, including its frame and foundation.
The province says that homeowners will be provided warranty coverage by their builder and will be given the option to purchase additional warranty coverage.
A public registry will also be available HERE starting this Saturday so homeowners can access warranty information and also find out if the home has a warranty and how much coverage remains.