Alberta's New Home Warranty Explained for Buyers

A new home in Alberta carries a warranty required by the New Home Buyer Protection Act. The minimum terms run from one year for finishing items up to ten years for the structure, the warranty stays with the home when it is resold and the province publishes two free registries so a buyer can check both the home and the builder. This post summarizes the pages on alberta.ca. It is general information and your lawyer and your warranty documents govern your own purchase.

What the warranty covers and for how long

Alberta.ca sets these minimum terms. Providers may offer more and a buyer can ask the builder what is included.

Coverage	Minimum term
Labour and materials (flooring, cabinets, trim and similar items)	1 year
Delivery and distribution systems (electrical, plumbing, heating, ventilation, air conditioning)	2 years
Building envelope (roof and walls)	5 years and providers must offer builders the option of 2 more years
Major structural components (frame, roof structure, foundation)	10 years

The minimum coverage limit is $265,000 for a single family home and $130,000 for a unit in a condominium. In a multi-family building, common property such as elevators, lobbies and stairwells is covered up to $3.3 million for each building. Alberta.ca says a homeowner can buy additional coverage and that limits are based on rebuilding cost and exclude land, contents and landscaping.

When coverage starts and which homes need it

Coverage begins on the first of three events: the home is occupied, the permitting authority gives permission to occupy or title transfers to the owner. It applies to new homes, including condominiums, with a building permit from February 1, 2014 onward. An owner-builder with a valid owner builder authorization does not need coverage or a builder licence for the home named in that authorization.

The warranty belongs to the home rather than the first owner. Alberta.ca states that it continues through resale until it expires, so a second owner inherits whatever time remains. That matters for a buyer of a home that is two or three years old and for a seller who can point to unexpired terms.

Who provides the warranty

Seven providers are listed on alberta.ca: 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 and WBI Home Warranty Ltd. The builder chooses the provider. Claims for construction defects go to that provider, which works with the builder to correct the problem.

Builder licensing

A builder needs a licence to obtain a permit for a new home. Alberta.ca describes two classes: general contractor, typically for up to four units and developer, typically for five or more units and condominiums. A licence is valid for one year and cannot be transferred. The published fees are $600 for a new licence, $500 for a renewal and a $95 registration fee for each residential unit. From January 1, 2027, builders must also confirm competency requirements when they apply or renew.

The two public registry searches

The province runs a property search and a builder search, both linked from alberta.ca.

• The property search shows the address, the warranty provider and builder with contact details, whether the home has coverage and the start date.
• The builder search shows licence status and class, the persons in control, related building companies, any enforcement actions and the number and location of homes built since February 1, 2014.

The limits are worth knowing. A home whose permit application was on or before February 1, 2014 will not appear in the property search and neither will files still in process. A builder without a current licence will not appear in the builder search, while a suspended or cancelled licence does appear with that status. A missing result is a reason to ask a question and your lawyer can follow up with the builder.

What to keep from possession day

Alberta.ca does not publish a list of records a homeowner must keep, so this is practical advice rather than a rule. Keep these together in one folder, on paper or digital:

• The warranty certificate or confirmation, with the provider’s name and the coverage start date.
• The purchase agreement, the possession date and the signed walk-through or deficiency list.
• Dated photos of any defect, with the date you first noticed it.
• Every written request to the builder and the replies.
• Receipts for any repair you arranged yourself.

Coverage runs from the start date, so the start date on the registry is the one to write on the calendar. Counting one, two, five and ten years from that date tells you when each term ends. Ask the warranty provider how and when to report a problem, since the claims steps sit on the provider’s documents and on alberta.ca.

How this fits a Calgary purchase

Buyers of new homes in the Calgary area deal with warranty, licensing and a possible deposit structure in the same purchase. For a condominium, the Condominium Property Act also holds buyer money in trust until title is issued. For a house, alberta.ca did not show a deposit rule on the pages used for this post, so ask your lawyer how your deposit is held. The new construction guide walks through the purchase from contract to possession. If you want to estimate the registration cost on the transfer, the land title fees calculator uses the Land Titles formula.

Derek Bryer, a licensed associate with eXp Realty, can look at a new build with you, point out what he sees and tell you which questions to put to the builder and the warranty provider. He is not an inspector or engineer, so a licensed home inspector does the formal assessment. Read the buyers page or contact Derek on 587-325-2992. If you are selling a home that still has warranty time, the sellers page covers how that is presented.