The province plans to introduce legislation next month to protect new homebuyers.
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The New Home Buyer Protection Act would make it mandatory starting Feb. 1 for builders to provide home-warranty coverage on any new single-family or multi-family homes, as well as condos and recreational properties.
“We’re rolling out the strongest consumer protection in Canada for new homebuyers. This legislation will help protect the single largest purchase that most people make — a home,” said Municipal Affairs Minister Ken Hughes in a release.
It requires minimum one-year protection for labour and materials — and two-years for heating, plumbing and electrical.
The warranties also include five-year building envelope protection and 10 years for frame and foundation.
The province expects the new home warranty would cost about $1,700 to $2,000 for an average home, or less than one per cent of the average house cost.
Homeowners will also be given the option to purchase additional warranty coverage if they want it.
A public registry will be available starting February athomewarranty.alberta.ca so homeowners can access more information about warranties, such as key dates and contact information for their provider.
Albertans shopping for a new home will also be able to use the registry to find out if the home has a warranty and how much coverage remains.
Source: CBC News | Calgary