are also required to advise home buyers of the option of purchasing additional coverage.
The NHBPA applies to construction of new homes, including newly constructed detached, semi-
detached, multi-unit, condominium buildings, manufactured homes and recreational properties
intended for residential occupancy. Additions, reconstructions or substantial renovations to a
residential home may be captured by the NHBPA if they result in > 75% of an existing home’s
above-ground square footage being new.
Owner builders may build their own home with warranty coverage, or apply for an exemption from
warranty coverage known as an Owner Builder Authorization.
The NHBPA also prohibits any person selling or offering to sell a new home while it is being
constructed or during the minimum coverage period. Owner builders who build pursuant to an
exemption from warranty coverage, or any builder who is de-enrolled from warranty coverage
during the coverage period, can face substantial difficulties obtaining replacement warranty
coverage, obtaining or renewing financing, or selling the property within 10 years from the
applicable commencement date. Realtors, lenders and subsequent purchasers and vendors should
ensure that proper warranty coverage is in place, or an appropriate exemption has been issued, in
respect of any new or recently built or reconstructed home.
On June 30, 2016, the Government of Alberta enacted the New Home Buyer Protection (Regional
Municipality of Wood Buffalo) Regulation (
RMWB Regulation
), which required all residential
builders of new homes in the Regional Municipality of Wood Buffalo to file a Residential Builder
Declaration (
RBD
) before they are able to obtain a building permit or warranty coverage. The RBDs
are available in full on a public Registry of RMWB Builders, along with Registrar’s Notes where
applicable. The RMWB Regulation does not prohibit a builder from building in the region; rather, it
is a disclosure-based system that permits homeowners to review the information contained in a
builder’s RBD when selecting a builder.
The Government of Alberta engaged in a public consultation in February to March, 2017 with
builders, renovators, owner builders and homeowners regarding a potential residential builder
licensing regime, and released its Engagement Summary Report in May 2017.
The 2017 Amendments
The Government of Alberta introduced Bill 12 – New Home Buyer Protection Amendment Act, 2017
(
Bill 12
) on May 4, 2017. Bill 12 was passed through third reading on May 18, 2017 and has since
been awaiting proclamation into force. On October 31, 2017, it was proclaimed by Order in Council
to come into force as of December 1, 2017.
As of December 1, 2017, building a new or reconstructed home to which the NHBPA applies will be
prohibited unless the builder holds a valid licence or has received an exemption or owner builder
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