New home warranty – Legislation and compliance

Relevant legislation

Acts and regulations

The legislative authority for home warranty and builder licensing comes from the following:

• New Home Buyer Protection Act
  • New Home Buyer Protection (General) Regulation
  • New Home Buyer Protection (Ministerial) Regulation
• Home Warranty Insurance Regulation
• Safety Codes Act Permit Regulation

Interpretation bulletins

The registrar for the New Home Buyer Protection Office issues bulletins regarding the New Home Buyer Protection Act and regulations.

• Read the Registrar’s interpretation bulletins.

Superintendent of Insurance

The Superintendent of Insurance of Treasury Board and Finance issued an interpretation bulletin regarding the Home Warranty Insurance Regulation:

• Home Warranty Insurance Regulation – Superintendent's Interpretation of Section 6(i) – July 2014

The Superintendent of Insurance also provides guidelines, in accordance with section 792.1 of the Insurance Act, to direct warranty providers (for example: insurers) on how to adjust home warranty claims and resolve home warranty claim disputes in Alberta:

• Guideline 05-2022: New Home Warranty Insurance Claims and Claims Disputes Guideline – June 1, 2022

Enforcement actions

The New Home Buyer Protection Act was created to improve residential construction quality, builder accountability and home owner recourse options in the province. The Residential Protection Program promotes compliance with the legislation through education and awareness.

If an individual or company fails to comply with the act or its regulations, enforcement actions such as compliance orders or administrative penalties may be taken.

Compliance orders

A compliance order may require a builder to take action to bring their organization or a specific construction project into compliance with the legislation. This may include stopping work on a new home, obtaining a licence or permit, or ceasing sales activity.

An individual who receives a compliance order can request the Registrar reviews their case, or they can appeal the order to the New Home Buyer Protection Board.

Failure to comply with a compliance order may result in administrative penalties, fines or prosecution.

The following definitions apply to compliance orders and administrative penalties.

Open

A Compliance Order or Administrative Penalty has been issued, but compliance has not been confirmed and/or payment has not been made. The expiry date for the Compliance Order or Administrative Penalty has not passed.

Outstanding

A Compliance Order or Administrative Penalty has been issued, but compliance has not been confirmed or payment has not been made. The expiry date for the Compliance Order or Administrative Penalty has passed.

Complied

Compliance has been confirmed. The Compliance Order or Administrative Penalty is closed and no further action is required at this time.

Paid

The Administrative Penalty has been paid. No further action is required at this time.

Under appeal

The Compliance Order or Administrative Penalty is currently under review or appeal.

Administrative penalties

The Government of Alberta may issue administrative penalties between $250 and $10,000 for a single infraction, and up to $1,000 per day for continuing or repeated infractions.

The total amount of an administrative penalty cannot exceed $100,000.

Residential Protection Program enforcement actions are made public on the registry and updated regularly.

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]