Calgary Inner City Blog

Alberta New Home Warranty

The Alberta New Home Warranty plan is designed to protect buyers of new homes and condos. The warranty is 5 years in length and covers 1 year of workmanship and 5 years of structural protection. There is also deposit protection  available.

Since there has been so many cases of builders not standing by their product, the Alberta government has rolled an enhanced protection plan. It will cover both Single Family homes and Condos – both are explained below.

Single Family

Deposit Protection (Choose a House or Lot, Make a Deposit)

  • The return of your deposit(s) up to 20% of the purchase price to a maximum of $100,000 is covered in the event of default by a Builder Member of the Program.

Builder Performance Protection (Unconditional Sale, Construction Stage)

  • You’re covered for up to $50,000 (including up to $3,000 in legal fees) towards the completion costs or the discharge of builders’ liens in the unlikely event a Builder Member should fail to complete a home as contracted. The Program provides the administration, co-ordination and supervision of all issues for the completion of your home.

First Year Workmanship and Materials Protection (House Completed, Take Possession)

  • If a Builder Member does not meet its warranty obligations, the Program provides for up to $100,000 in costs to repair defects in workmanship and materials during the first year after you take possession. This $100,000 total also includes costs related to the Five Year Structural Integrity Warranty Protection.

5 Year Structural Integrity Protection (After First Year Up to Five Years)

  • The unused portion of the First Year Materials & Workmanship Warranty coverage amount, up to $100,000, can also be applied to the costs to repair major structural defects affecting the load bearing components of your home in the first five years.

10 Year Structural Integrity Protection (Optional) (After Five Years Up to Ten Years)

  • At the time of possession, you may also choose to purchase our extended Structural Integrity Warranty Protection (at a cost of $200 + GST) for an additional five years for a total of ten years of structural protection.

Additional Living Expenses Protection

  • While Warranty work is being completed in your home, you may incur incremental excess living costs. The Program will reimburse you for up to $6,000 in pre-approved, verifiable living expenses over the span of your coverage.

Condo

Deposit Protection

  • You’re covered for the deposit amount or up to 15% of the purchase price, whichever is less, to a maximum of $30,000. (Conditions for the use of deposit monies are subject to specific terms of performance outlined in the disclosure documents that are part of the purchase agreement and the Condominium Property Act.)

First Year Workmanship and Materials Protection

  • If the Registered Builder member does not meet its warranty obligations, the Program provides up to $60,000 per unit in costs to repair defects in Workmanship and Materials during the first year after you take possession subject to a limit of the lesser of $60,000 per condominium unit or $1,500,000 for the project.

5 Year Structural Integrity Protection

  • The unused portion of the First Year Materials and Workmanship coverage amount, up to $60,000 per unit, can also be applied to the costs to repair major structural defects affecting the load bearing components of your unit in the first five years subject to a limit of the lesser of $60,000 per unit or $1,500,000 for the project.

Additional Living Expenses Protection

  • While Warranty work is being completed in your home, you may incur incremental excess living costs. The Program will reimburse you for up to $6,000 in preapproved, verifiable living expenses over the span of your coverage.

Approved Plan

  • The Program is an approved purchaser’s protection plan within the meaning of section 11 (10) of the Regulations under The Condominium Property

We deal with quite a few new developments and builders. If you have any questions or would like more inofrmation please contact us – 403.478.3258.

Contact Renzo!

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Jan 28, 2014
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