New Home Buyer Protection Act in Alberta: What Buyers Get

Buying a newly built home is a big step, and problems can show up after you move in. Alberta has a law aimed at giving buyers a safety net when that happens.

This article explains what the New Home Buyer Protection Act requires of builders, which homes it covers, and how you can check a builder and a home before you buy. It is general information, not advice on your own purchase.

This article covers the law of Alberta.

What the Act is for

The Act was created to improve residential construction quality, builder accountability and home owner recourse options. The statute is SA 2012, c N-3.2, supported by the New Home Buyer Protection (General) Regulation, the (Ministerial) Regulation and the Home Warranty Insurance Regulation.

In practical terms, it requires builders to provide home warranty coverage on all new residential homes, including condominiums, manufactured homes and recreational properties.

Which homes are covered

The Act applies to homes where the building permit was applied for on or after February 1, 2014. Older homes are not in the Property Registry.

There are exceptions. Some are listed below.

• Renovators generally do not need a builder licence or warranty unless the renovation makes up 75% or more of the home as new construction; 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, but only for a single-family, site-built home for the owner's personal use, kept for at least 10 years; duplexes, 4-plexes and factory-built homes do not qualify, and within the 10-year period the 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.
• Multi-family rentals kept for at least ten years do not require warranty.

What builders must do

• 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.

All residential builders in Alberta must have a licence to obtain permits for constructing new homes, and must present the Certificate of Licence and the Approved New Home Registration when applying for a new home building permit. Licensing began December 1, 2017, so homes permitted before that date were not built by a licensed builder.

From January 1, 2027, builders applying for a new licence or renewing one must confirm competency in four core areas: construction safety and quality; customer experience and satisfaction; construction supervision and project management; and contract and contractor management.

What protection you get as a buyer

Minimum warranty periods are 1 year for labour and materials, 2 years for delivery and distribution systems, 5 years for the building envelope, and 10 years for major structural components. Coverage attaches to the home, not the owner, so it stays in effect on resale until it expires.

• The 1-year labour and materials coverage deals with defects in materials and workmanship, such as flooring, staircases, baseboards, cabinets, railings, trim and fixtures.
• The 2-year coverage applies to electrical, plumbing, heating, ventilation and air conditioning.
• The 5-year building envelope coverage applies to the roof and walls, and warranty providers must offer builders the option to buy an extra 2 years.
• The 10-year coverage applies to the frame, including roof structural integrity, and the foundation.

Coverage starts at the earliest of the home being occupied, the permitting authority granting permission to occupy, or title transferring to the owner. 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, and the start dates for common property may differ from those for individual units.

Minimum rebuild coverage limits are $265,000 for a single-family home and $130,000 for a condominium or other multi-family unit, and buyers can purchase more. The limits are based on rebuilding the structure only, excluding land, contents and landscaping. Common property in a multi-family project, such as elevators, lobbies, stairwells and building envelope, has up to $3.3 million in coverage per building.

To make a claim, you contact the warranty provider. The provider explains its requirements, assesses the claim and works with the builder to resolve warrantable defects, and you should check your coverage dates first to confirm the issue is still within the period. What is excluded depends on the regulation and your warranty contract, so read the contract and ask the provider if you are unsure.

Homes with permits issued on or after February 1, 2014 cannot be sold, offered for sale or listed without warranty coverage and registration. The program can issue a Compliance Order requiring removal of listings and signs, and non-compliance is an offence.

If you are buying a new condominium unit, the Condominium Property Act adds further protections, including a right to rescind within 10 days. Our separate articles on warranty length and warranty coverage go into more detail.

What to do next

• Search the Builder Registry by builder name, builder ID or licence ID to see licence status, class, persons in control and enforcement actions.
• Remember that a builder who does not appear is not shown as licensed.
• Search the Property Registry by civic address, lot/block/plan or builder to see the warranty provider, whether the home has coverage and when it started.
• Have a lawyer review your purchase contract before you sign, especially for price changes or possession dates.

Frequently asked questions