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Alberta.ca Account
Part of New home warranty

New home warranty - Hardship exemption

New homes in Alberta need warranty coverage or a hardship exemption to be legally sold under the New Home Buyer Protection Act.

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Hardship exemption

Overview

Under Alberta’s New Home Buyer Protection Act (NHBPA), all new homes must carry new home warranty coverage for the 10-year protection period unless they have received an authorization, designation, or an exemption from the Registrar, NHBPA. 

A new home cannot be sold or offered for sale without the required new home warranty coverage unless a hardship exemption is issued by the Registrar, NHBPA. In the absence of warranty, statutory protections remain in place and original builders or owner builders are responsible for:
 

  • the quality of materials and labour (1 year)
  • materials and labour related to delivery and distribution systems (2 years)
  • building envelope (5 years)
  • structure (10 years)

Exemption considerations

  • Who can apply?

    You may consider applying for a hardship exemption if you find yourself in the following circumstances and you can satisfy the Registrar, NHBPA, that you would suffer undue or financial hardship if an exemption is not issued:

    1. You are in a position where you need to sell a new home that does not have the required new home warranty coverage within the 10-year protection period.
    2. You are a licensed builder or owner builder experiencing insolvency or financial difficulty.

  • Caveat

    If a hardship exemption is approved, the Registrar, NHBPA, will file a caveat against the Certificate of Title for the land. 

    This caveat provides public notice that there is no home warranty coverage, and the home cannot be sold to a consumer during the 10-year protection period without warranty.  

    When the 10-year period has expired, the caveat will be discharged. For information on the discharge of a caveat, contact the Residential Protection Program at [email protected].

  • Protection period

    Applicants are required to inform the Residential Protection Program of the date when either:

    • the home is first occupied or
    • an occupancy permit or final inspection is issued by the municipality or the authority having jurisdiction

    The earlier of the dates provided will be considered as the beginning of the 10-year protection period, during which the home cannot be sold without warranty coverage or an exemption from the Registrar, NHBPA.

Before you apply

Before submitting a Hardship Exemption Application, please ensure you have completed the following steps:

  • Attempt to obtain new home warranty

    • Make reasonable efforts to purchase new home warranty coverage for your property.

  • Gather required documentation

    • Where applicable, documentation should be provided to support your application. This may include financial statements, medical records, correspondence with warranty providers or other relevant evidence that demonstrates hardship as outlined in the Hardship Exemption Application.

  • Understand the Registrar expectations

    • The Registrar, NHBPA, may request additional documentation necessary to evaluate your application and circumstances, as well as proof that you have attempted to obtain warranty and that a hardship exemption request is in good faith.
    • The Registrar, NHBPA, must be satisfied that the applicant would suffer a hardship if an exemption is not issued.

  • Contact for guidance

    If you have questions about eligibility or documentation, contact the Residential Protection Program at [email protected] or call 780-644-1010.

How to apply

  1. Complete and submit the Hardship Exemption Application with all required documents. 
    NOTE: Applications are not considered complete until all documents are received.
  2. The NHBPA Registrar reviews the information and makes a decision. Each application is evaluated individually on a case-by-case basis.
  3. You will be notified of the decision in writing.
  4. In the event an application for a hardship exemption is refused, the applicant has the right to appeal. An appeal must be filed within 30 days of receiving the decision. Appeals are to be submitted to the Land and Property Rights Tribunal.

Resources

Contact

Connect with the Residential Protection Program:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-644-1010 (within Canada and United States)
Toll free: 1-866-421-6929 (within Canada)
Email: [email protected]

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