One of the great advantages of buying a brand new home is a warranty.
Purchasing a home is a significant investment, and you want to make
sure it is well protected. As you look at homes and get to know the
builders in your community, consider the warranty carefully.
Is a new home warranty mandatory?
In British Columbia, Ontario and Quebec, builders have to provide homebuyers with a third-party warranty. In the rest of Canada, the decision is left up to the individual builder. For homebuyers, the choice is easy-you want to buy your home from a professional builder with a solid reputation, excellent after-sales service and a third-party warranty.
What's covered?As a minimum, a new home warranty generally includes deposit insurance and protection against defects in work and materials as well as major structural defects. Additional coverage may include defects in your home's mechanical systems or building envelope. Some warranties include living expenses to offset the cost of temporary accommodations, moving and storage if you cannot occupy your home due to builder failure or warranty repairs. You may also be able to upgrade a "basic package" and get extended coverage.
Before you sign a contract with your builder. Know what you are buying. Ask the builder to explain the warranty before you make a final decision-what's covered and what's not. Also verify that the builder is registered with a warranty provider; you can contact the provider by telephone or check their web site.
As your home nears completion, your
builder will schedule a walk-through of your home, also known as a
pre-delivery inspection. Together, you and your builder will go through
the home to verify that it is built according to plan, with the features
and inclusions specified in your agreement. At the same time, you
should take note of any imperfections and defects that require
attention, down to the smallest detail-a sticking drawer, a missing
towel rack, a scratch on the wall and so on. Discuss with your builder
how and when these things will be dealt with.
Before you move in.
During the walk-through, your builder will explain how to operate and service the mechanical systems, and how to take care of the many components in your home to ensure long-lasting performance. Ask questions as you go-it's important that you feel confident and knowledgeable about your new home from the outset.