That was quick! Just a month ago new legislation was proposed and it was actually passed this week.
All Albertans who buy a new home will have warranty coverage for their purchase under new legislation . The New Home Buyer Protection Act passed third reading on November 20, 2012 and will require builders to provide home warranty coverage for all new homes built in the province starting in Fall 2013.
All new homes (detached homes and condominiums) would at minimum, include a warranty for:
- One year labour and materials;
- Two years for defects in labour and materials related to delivery and distribution systems;
- Five years building envelope protection, with a requirement for the warranty provider to offer the consumer the option to purchase additional years of coverage; and,
- 10 years coverage for major structural components.
Effective date: The Act applies only to new homes constructed under a building permit applied for after the in-force date of the Act.
How will this affect new home buyers? Will they hold off purchasing until they are better protected? Will builders begin offering the improved warranty immediately?