Mandatory New Home Warranty Passed

CHBA was proud to be involved in the recent Team Lethbridge Trip to Edmonton where a group of community professionals were able to offer support and discuss Lethbridge issues with our members of the Legislature. One of the main areas of support lent by the CHBA to Minister of Municipal Affairs, Doug Griffiths was the proposed mandatory new home warranty and one day after visiting the Provinces Capital, the CHBA is extremely pleased to hear that Bill 5, the New Home Buyer Protection Act was passed.

*Alberta has introduced new legislation making it mandatory for builders to provide warranties for new homes.

Under Bill 5, warranties on new homes would be one year for labour and materials; two years for defective labor or materials; five years for the exterior and 10 years for major structural components. The law will cover all new homes built in the province starting in the fall of 2013.

"It does it in a way that makes sure that builders are more accountable but that homes are still affordable," said Municipal Affairs Minister Doug Griffiths.

The government believes the warranty will raise the price of an average home by less than one per cent or about $1,700 to $2,000. Deron Bilous, the NDP critic for Municipal Affairs, welcomed the new bill. However, he believes the province should also strengthen home inspections. "This act isn't going to at least at the moment doesn't look like its dealing with home inspections," he said. "Certification of inspectors and then ensuring that province-wide that there are standards." The government plans to soon introduce legislation which would increase fines for contractors who don't meet standards.* 

Minister Griffiths was also quoted to say “Albertan’s should be reassured that the single largest purchase their family makes will be protected by one of the strongest warranty programs in the country”.  Purchasing a new home can be a stressful time and this will hopefully take some of the worry out of the experience.

 “The passing of this bill will help make the home building industry stronger”, said Angie Zuba, Executive Officer of the CHBA Lethbridge Region. “It raises the bar and makes all home builders use the finest craftsmanship to build the most reliable homes. Our members have been in support of this bill the entire time as it reduces the likely hood of substandard building which can tarnish the reputation of the industry.” Zuba also commented.