How Long Does New Home Warranty Coverage Last in Alberta?

Alberta's mandatory new home warranty is not one single period. Different parts of the home are covered for different lengths of time.

This article sets out those minimum periods, explains when the clock starts, and covers the condominium exception so you can track your own dates.

This article covers the law of Alberta.

The four minimum warranty periods

Warranty providers must offer builders the option to buy an extra 2 years of building envelope coverage. Check your own documents to see whether that was bought.

These are minimums set by the New Home Buyer Protection Act, which was created to improve residential construction quality, builder accountability and home owner recourse options. Think of the four periods as running side by side from the same start date, each ending at a different time. A problem with a cabinet and a problem with the foundation are measured against different clocks.

When the clock starts

Coverage starts at the earliest of three events: the home being occupied, the permitting authority granting permission to occupy, or title transferring to the owner.

This means your warranty may start before you get the keys or move in. Your possession date and the warranty start date are not necessarily the same, so confirm the start date rather than assuming.

Condominiums are different

For condominiums, coverage for units and for common property starts on the earlier of first occupancy or transfer of legal title, with separate policies for each. The start dates for common property may differ from those for individual units.

Rebuild limits also differ. The minimum is $265,000 for a single-family home and $130,000 for a condominium or other multi-family unit, based on rebuilding the structure only. Common property in a multi-family project has up to $3.3 million in coverage per building.

Buyers can purchase more than the minimum rebuild limit, and the limits exclude land, contents and landscaping. If you own a condominium unit, you may therefore need to look at two sets of dates: one for your unit and one for the building's common property such as elevators, lobbies, stairwells and the building envelope.

Resale and your dates

Coverage attaches to the home, not the owner. It stays in effect on resale until it expires. If you buy a home that is a few years old, part of the warranty may still be running.

The Property Registry shows the warranty provider and contact details, whether the home has coverage and when coverage started. You can search it by civic address, lot/block/plan or builder.

You can also look up the builder in the Builder Registry, which shows licence status and class, enforcement actions under the Act, and the number and locations of homes built since February 1, 2014. A builder who does not appear in the registry is not shown as licensed.

Which homes the warranty applies to

The Act requires builders to provide home warranty coverage on all new residential homes, including condominiums, manufactured homes and recreational properties. It applies to homes where the building permit was applied for on or after February 1, 2014.

Builders have several duties under the Act:

• Make sure the home is enrolled with a warranty provider.
• Make sure the coverage meets the legislated requirements.
• Hold a residential builder licence.
• Make sure the home under warranty is registered.

There are exceptions, so a home may not follow the usual pattern:

• Renovators generally do not need a builder licence or warranty unless the renovation makes up 75% or more of the home as new construction, and a relocated home that is 75% or more new construction is treated as a new home.
• An owner builder with a valid Owner Builder Authorization needs no builder licence or warranty for the home named in it. Duplexes, 4-plexes and factory-built homes do not qualify.
• Within the 10-year protection period, an owner builder cannot sell or offer to sell the home unless the required warranty has been purchased.
• The Act does not cover dormitories, care facilities, work camps or hotels, and does not apply to homes on federal lands such as First Nations reserves and National Parks.

Homes covered by the Act cannot be sold, offered for sale or listed without warranty coverage and registration in the New Home Buyer Protection System. The February 1, 2014 date is described in official material both as the date a permit was applied for and the date it was issued, so if your home's permit dates are close to it, it is worth confirming which applies.

What to do next

A homeowner files a warranty claim by contacting the warranty provider. The provider explains its requirements, assesses the claim and works with the builder to resolve warrantable defects.

The Construction Performance Guide sets basic coverage requirements and recommended minimum performance expectations. It is not a comprehensive list, so an issue missing from the guide does not mean it is not a defect or that the warranty provider is not responsible for it. Exclusions are set by the Home Warranty Insurance Regulation and the warranty contract. How they apply to your problem depends on your situation, so it is worth confirming with a lawyer.

• Look up your home in the Property Registry by civic address or lot/block/plan.
• Write down the coverage start date and calculate the end of each period.
• Check coverage dates before you report a problem, to confirm it is still within the period.
• Keep your purchase documents and any warranty paperwork in one place.
• Ask a lawyer if your dates or contract are unclear.

If you have a dispute with a warranty provider over a claim, Guideline 05-2022, the New Home Warranty Insurance Claims and Claims Disputes Guideline, addresses claim disputes, and the Residential Protection Program can be reached at 780-644-1010 or 1-866-421-6929.

Frequently asked questions