gradient box – do not remove it
Before you buy a new build in Alberta, check five things: that the builder holds a valid licence, that the home is enrolled for warranty, the coverage periods and start date, the exclusions and claim steps, and what your purchase agreement says about deposits, possession and unfinished work. Property Law Firm is a residential real estate law firm with two Calgary offices, and we review these documents for first-time buyers across Alberta before they commit.
Plenty of first-time buyers in Alberta assume a brand-new house will be free of problems. Many find out after moving in that a defect claim can turn on paperwork nobody checked before possession. The warranty is real and the law requires it, but it only protects you if you know who provides it, when it started, and how to make a claim.
Why Alberta’s Warranty Still Needs Your Attention
Under Alberta’s New Home Buyer Protection Act, new homes built under permits applied for on or after February 1, 2014 must carry third-party warranty coverage. Limited exemptions exist, such as owner-builders with a valid owner builder authorization. Coverage attaches to the home rather than to you, so it carries over to later owners until it runs out. It starts on the earliest of three events: the home is occupied, the municipality grants permission to occupy, or title transfers to the owner.
The law sets the minimum. It is still your job to confirm the details apply to your home. The checklist below covers what to verify in the warranty, then explains where a real estate lawyer fits into a first-time buyer’s closing. The province’s new home warranty overview has the full rules.
Warranty Coverage Checklist
Mandatory Coverage Terms
Alberta’s minimum coverage is often called “1-2-5-10.” Every enrolled home should meet these periods at a minimum:
| Coverage period | What it protects | Examples |
| 1 year | Labour and materials | Flooring, trim, cabinets, finish work |
| 2 years | Delivery and distribution systems | Plumbing, electrical, heating, ventilation, air conditioning |
| 5 years | Building envelope | Roof, exterior walls, the shell keeping water out |
| 10 years | Major structural components | Frame, foundation |
Next, look past the headline numbers. Ask the warranty provider for the exclusions, the deductibles, and the claim steps in writing, because these vary by policy. The province also publishes a Construction Performance Guide that describes the performance standards new homes are expected to meet, which is a useful reference if you and the builder disagree about whether something is a defect.
Condo buyers have an extra item to check. Your unit and the building’s common property can have different warranty start dates, so the time left on each may not match. Ask for the coverage details for both, and work out how much time is left on each. Our guide to condo purchases for first-time buyers in Calgary covers the other condo documents to review.
Last, ask about your deposit. Find out whether the builder’s deposit arrangement is protected, under what terms, and whether that protection is included or sold as an optional extra. Treat this as something to confirm in your documents rather than something to assume.
Verify Builder and Registry
Alberta requires residential builders to hold a valid licence for homes built under permits issued after December 1, 2017, and a new home cannot be sold or listed until it has warranty coverage and is registered. You can confirm both on the province’s New Home Public Registry, which has two separate searches:
- Builder registry: licence status, how many homes the builder has built and where, previous licences, and any enforcement actions.
- Property registry: whether the home has warranty coverage, the provider’s name, and the date coverage began.
Do both searches before you sign. Then get the warranty certificate itself, and check that the provider name and start date match the registry. Ask the provider for written claim deadlines and procedures, and keep them where you can find them.
Closing With Legal Support
What a Lawyer Reviews
The purchase agreement sets the terms of your sale, and the warranty sets what happens after you move in. On a new-build closing, a real estate lawyer typically reviews:
- The purchase agreement
- Warranty documentation
- Builder deposit terms
- Title
- Mortgage instructions
- Statement of adjustments
Builder contracts can say different things from what a sales office promised, so a good review goes further than that list. Your lawyer can flag possession-date clauses that let the builder delay closing. They can also check deficiency or holdback terms, which decide whether money is held back until unfinished items are fixed. Finally, they can point out gaps between what the builder promised verbally and what the warranty covers in writing. Our simple guide to Alberta purchase agreements explains how conditions and deadlines work in the contract itself.
Comparing Flat-Fee Options
Many Calgary and Edmonton firms advertise flat-fee closings for first-time buyers, but two quotes with the same headline number can cover very different work. Ask each firm to put in writing whether the fee includes:
- Title registration and title insurance
- Mortgage instruction work
- Disbursements such as searches and registration costs
- GST
- Condo document review
- Builder contract and warranty review
When you’re deciding which lawyer is the best fit or the most affordable, look for three things. First, a clear written fee quote. Second, experience with new builds and first-time buyers. Third, quick responses in the weeks before possession, when builder delays and changed dates are most common. Our article on fixed-fee real estate closings in Calgary shows what a flat fee should cover.
Your Pre-Closing Takeaway
Before you close, check four things: the builder’s licence, the home’s warranty enrolment, the coverage terms, and exactly what your legal fee covers. Those checks protect both your home and your budget. The most useful next step is a document review before you sign, while you can still negotiate the contract.
Buying a new build in Alberta? Property Law Firm reviews the builder contract, warranty documents and title together as part of your purchase, so problems come up before possession day. Learn about our residential purchase services or request a quote.
Frequently Asked Questions
Is a new home warranty mandatory in Alberta?
Yes. New homes built under Alberta permits applied for on or after February 1, 2014 need provincially mandated warranty coverage from an authorized provider. Limited exemptions apply, such as owner-builders with a valid owner builder authorization.
Does the warranty carry over if I buy a home that someone else bought new?
Yes. Coverage attaches to the home, so it passes to each new owner until the coverage periods run out. Check the start date on the Property Registry to see how much time is left.
Does a flat-fee closing include warranty review?
Not always. Many flat fees cover standard conveyancing only. Ask in writing whether builder contract and warranty review are included or billed separately.
Do I pay land transfer tax on a new home in Alberta?
No. Alberta has no land transfer tax. You pay Land Titles registration fees instead, which our guide to Alberta closing fees explains with a worked example.
This article is for general information purposes only. It does not constitute legal advice and does not create a solicitor-client relationship. Consult a licensed Alberta lawyer for advice specific to your transaction. This content has been prepared to align with Canadian Bar Association guidelines and the Law Society of Alberta’s rules regarding lawyer advertising and public communications.
