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Homebuyer warranties eyed

The Alberta government is proposing changes to improve the standard of building in Alberta to better protect new homebuyers and hold builders more accountable. "The vast majority of homes in Alberta are built well and stand the test of time.

The Alberta government is proposing changes to improve the standard of building in Alberta to better protect new homebuyers and hold builders more accountable.

"The vast majority of homes in Alberta are built well and stand the test of time. But we want to ensure that we have all the tools in place to address those instances where issues do arise," said Municipal Affairs Minister Hector Goudreau. "This full-suite approach will involve all partners from municipalities and their inspectors to builders and safety codes officers to consumers and warranty providers."

The province says it will consult with key stakeholders on developing a regulatory framework for mandatory new home warranty programs. There are currently five new home warranty programs available in Alberta. The regulatory framework would enhance what is available to consumers and set minimum provisions and standards.

The government is proposing an increase be considered for the limitations period, increasing the length of time that charges may be laid for building code offences to up to three years after homeowners take possession. It is also proposing the maximum fine be increased to $100,000 for a first offence and hiked as high as $500,000 for subsequent offences.



The government says it wants to improve the standard of building in Alberta with a Municipal Affairs review of the Safety Codes Act. As well, the Safety Codes Council is conducting a broad review of Alberta's inspection system and will provide building envelope training to all building safety codes officers in the province in the next 12 months.

"Our comprehensive approach strikes the balance between consumer protection and industry responsibility without significantly adding to the price of a home or negatively impacting builders who comply with Alberta's codes," Goudreau said in a news release.


from Western Investor July 2011