Home warranty protection
A new home warranty is attached to the home, not the owner of the home, and remains in effect upon the re-sale of the home until the coverage expires.
The warranty coverage begins when the first of the following occurs:
- the new home is occupied
- the permitting authority grants permission to occupy
- the title of the new home is transferred to the owner
Warranty providers
Seven warranty providers currently operate in Alberta:
- Alberta New Home Warranty Program
- Blanket Home Warranty Ltd.
- Millennium Insurance Corporation
- National Home Warranty Group Inc.
- Progressive Home Warranty Ltd.
- Travelers Insurance Company of Canada
- WBI Home Warranty Ltd.
Information for municipalities
Municipalities, or their permit issuers, are responsible for confirming:
- the new home will be constructed by a residential builder who holds a valid and active builder licence
- the new home has warranty coverage
- if the home is not going to be constructed by a licensed builder, that a valid Owner Builder Authorization for the new home has been issued by the Registrar
- if the New Home Buyer Protection Act does not apply to the new home, that an exemption has been obtained from the Registrar indicating that the new home is exempt from the requirements of the Act
Every home built in Alberta since February 1, 2014, requires warranty coverage. This means all building permits for new home construction applied for after February 1, 2014, need to meet the requirements of the New Home Buyer Protection Act.
All residential builders constructing new homes in Alberta since December 1, 2017, require a valid builder licence. Permit issuers are required to check that a residential builder has an active licence.
Confirm licence status using the:
- Registrar's Home Registration Certificate
- Certificate of Licence
- Builder Registry search
Owner builders with a valid owner builder authorization do not need a builder licence or warranty coverage for the new home identified in the authorization.
Owner built homes will appear in the Property Registry, but owner builders will not appear in the Builder Registry.
The New Home Buyer Protection Act does not affect a municipality's requirement to comply with the Safety Codes Act. Accountabilities set out in the Safety Codes Act and the accreditation agreement remain the same.
Only new building permits issued after December 1, 2017 require the home to be constructed by a licensed builder.
- Read the memorandum on active building permit applications from the Registrar, November 2017.
Information for real estate professionals
The New Home Buyer Protection Act prohibits someone from selling or offering to sell a new home without warranty coverage if the building permits were issued on or after February 1, 2014.
A new home cannot be sold or listed for sale until it has warranty coverage and is registered in the New Home Buyer Protection System.
Before you list
If a home was built on or after February 1, 2014, a professional real estate agent must confirm that it has home warranty before listing it for sale.
If a real estate professional engages in sales activity on a home without home warranty coverage, the Residential Protection Program can issue a Compliance Order requiring the real estate professional to:
- remove the listing from the Internet
- remove "For Sale" signs from the home
- cease any sales activities
Non-compliance with such an order would be an offence under the act and may result in prosecution or administrative penalties or both.
You can search the Property Registry to find warranty information on homes and builders.
For more information, see the factsheet on roles and responsibilities of real estate agents and lawyers.
Resources
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: rpp@gov.ab.ca