Whether you represent the buyer or the seller, if you’re dealing with a home built in the last seven years, familiarity with its warranty is essential.

Since the release of Alberta’s New Home Buyer Protection Act in February 2014, there have been significant changes to the role of the real estate professional. REALTORS^® must ensure homes built on or after Feb. 1, 2014 are covered under a new-home warranty, as mandated by the New Home Buyer Protection Act, before they are listed for sale.

Failure to ensure warranty coverage may result in a Compliance Order ceasing the sale of the property. Furthermore, non-compliance with an order to cease the sale could result in prosecution and/or administrative penalties.

Real estate professionals can obtain new-home warranty information for houses built since February 2014 by searching the Property Registry using the address of the property. The system will provide information on the warranty coverage, including dates and the name of the provider.

Listing agents must verify the warranty information prior to listing the property and buyer’s agents should use the property registry to learn more about warranty information that could help their clients during the purchase process.

Under Alberta’s New Home Buyer Protection Act, homes built in Alberta since Feb. 1, 2014, require new-home warranty coverage. The warranty protection covers single- and multi-family homes, condominiums, manufactured homes and recreational properties. There are currently six warranty providers builders may partner with for coverage.

The components of coverage range from one to 10 years of protection:

• One Year on labour and materials.
• Two years on labour and materials related to heating, plumbing, electrical systems, ventilation and air conditioning delivery systems.
• Five years on building envelope, including the shell of the home, roof and walls – two years of additional coverage are also available.
• 10 years on the key structural components of the home, including frame, roof and foundation.

For more information, please visit New home warranty – Overview | Alberta.ca

Missed our presentation from the Professional Home Builders Institute, “Sales to Warranty – The Building Process?” The first part of the two-part series is available now to watch as a recording. Part two of the series will be presented in the fall, so stay tuned for session details and registration info.