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New home warranty

Process and regulations for new home warranty and residential builder licensing in Alberta.

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New home warranty

Introduction

All new homes built in Alberta require new home warranty coverage if the building permit was applied for on or after February 1, 2014. Prior to this, some new homes in Alberta were covered by home warranty. Your home purchase documents will include this information.

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.

The act does not cover dormitories, care facilities, work camps or hotels. The act does not apply to homes built on or relocated to First Nations reserves.

Builders are responsible for making sure the home is enrolled with a warranty provider and that the warranty coverage meets legislated requirements. Homes under warranty are registered.

Learn how to find a property listed on the Property Registry.

  • Condominiums

    Condominium purchasers must be provided new home warranty protection under the act.

    It is important to know the start date for warranty coverage on common property and common facilities, as it may be different from the commencement date for warranty coverage on individual units.

    A Building Assessment Report should be available from the condominium corporation. Read the relevant legislation and interpretation bulletins.

  • Change of use

    When a structure not originally built as a dwelling (such as a, garage, granary or church) is to be converted into a residential home, the requirements of the New Home Buyer Protection Act must be met for building permits to be issued.

    Buildings converted into condominiums, such as rental buildings and industrial or commercial spaces converted and sold as residential condominiums, may require home warranty coverage.

    For buildings more than 10 years old, warranty is not required unless the conversion meets the reconstruction (renovation) threshold.

  • Relocation

    When a home is relocated to Alberta, the requirements of the New Home Buyer Protection Act apply under the same rules as those homes built in Alberta.

    When an older home is relocated in such a way that 75% or more is new construction, this is considered a new home, and the New Home Buyer Protection Act applies.

    When a home is moved from one location to another within Alberta and has warranty coverage as per the act, this coverage cannot be terminated once it has commenced.

    Any damage caused during the move may not be covered. Consult with your warranty provider prior to moving.

  • Renovations

    Multi-family rental units do not require home warranty if the owners plan to keep the property for at least ten years. Read more on rental-use designation.

    Home renovations do not require home warranty coverage or that the builder is licensed under the New Home Buyer Protection Act, except when it results in over 75% of the completed home being brand new construction.

    If you have questions about whether a renovation meets the definition of a new home, please contact the Residential Protection Program.

  • Exemption from warranty

    Landowners who want to build their own homes can do so with an owner builder authorization. An approved owner builder can choose to build with or without home warranty.

    Read more on owner builder authorization.