Mandatory New Home Warranty Protection Introduced

Albertans purchasing a new place to call home will have warranty coverage for their purchase under new legislation proposed by the Alberta government.

Bill 5, the New Home Buyer Protection Act, was introduced in the legislature on Oct. 25. The Act requires builders to provide home warranty coverage for all new homes built in the province starting in fall 2013. "While most homes in Alberta are built to stand the test of time, in things do go wrong, homeowners will have stronger protection to get their homes repaired," said Doug Griffiths, minister of Municipal Affairs.

"Albertans should be reassured that the single largest purchase their family makes will be protected by one of the strongest warranty programs in the country."

Under the proposed legislation all new homes would at minimum include a warranty for one year labour and materials; two years for defects in labour and materials related to delivery and distribution systems; five years building envelope protection, with a requirement for the warranty provider to offer the consumer the option to purchase additional years of coverage and 10 years coverage for major structural components.

The new home warranty is expected to cost between $1,700 and $2,000 for an average home.

Tagged: Calgary Real Estate | Calgary Real Estate News | Home Buyers | House & Home