EDMONTON- A new mandatory warranty program designed to protect people buying new homes across the province has been delayed, and opposition members are speaking out.
The New Home Buyer Protection Act was passed in November 2012, and was originally supposed to come into effect this fall. However, that date has been pushed back to February 1, 2014.
Liberal Municipal Affairs Critic Laurie Blakeman says the delay was quietly published on the government’s website and she’s upset the ministry wasn’t more up-front about the new timeline.
“They hadn’t bothered to tell us, which I think is disrespectful to Albertans. And secondly, that it was only when they got caught that they said ‘oh yes well, this will be the new date.'”
Ninety per cent of homes built in Alberta already have new home warranty, but the new legislation will require all builders to provide more comprehensive home warranty coverage for all new homes built in the province.
Municipal Affairs Minister Doug Griffiths says it’s important that the government get the Act right, and the delay was necessary in order for the regulations to be reviewed.
“I don’t want to do it so that we make some mistakes, that creates problems. We’re dealing with consumer protection and safety of the largest investment that people are going to make in their lives for the most part, and so we want to make sure we get that right.”
Griffiths says the province had no intention of hiding the new timeline.
“We anticipated that people who are interested are going to be watching and lots of people have found it on the website. It wasn’t meant to hide anything for anybody.”
He says the companies that will be offering the warranties simply had a few issues and questions, and wanted more time to ensure everything was in place before the Act came into effect.
“Obviously sooner is better. However, it turns out that this is a very difficult and complex issue that involves, actually, three departments- Service Alberta, Finance and Treasury Board, and Municipal Affairs,” explained Jim Rivait with the Canadian Home Builders’ Association.
“There’s a lot of moving pieces to this and we want to make sure that it’s done right. And it’s better to be right than fast,” he explained. “That’s what everyone’s interest has been in this, to make sure that we’re putting something in place that works for consumers.”
While Blakeman understands the need to get the Act right, she worries about Albertans building new homes between now and February who will miss out on the comprehensive coverage.
The CHBA estimates that for every month until implementation, there will be about 265 homes built in Alberta without a warranty.
“That’s a lot of people in Alberta who should have been able to have coverage for themselves, protection for themselves, that won’t get it,” she said. “I’m happy enough with the Act, which is why I’m disappointed that it’s taken so darn long to actually get it in place.”
With files from Julie Matthews, Global News.
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