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Q - Will my new home have a warranty?

Your contract with your builder will outline what warranties cover your new home.  Be sure you understand what’s covered, and what’s not.  For example: what work and materials are covered? for how long? is your deposit protected?

Canada Mortgage and Housing Corporation (CMHC) has free information on ‘Selecting a New Home Builder’ and ‘Understanding Your New Home Sales Contract’.  Both publications talk about new home warranty coverage.  Contact CMHC online at http://cmhc.ca, or call 902-426-3530 or 1 800 668-2642.

Q - Is new home warranty coverage mandatory in Nova Scotia?

No.  New home warranty from an independent third party warranty company is not mandatory for construction in Nova Scotia.

However, your mortgage lender will likely require that your new home be covered by a third party warranty as a condition of lending you money.  Your lender will also likely require a copy of a certificate of completion/possession before releasing funds. A certificate of completion and/or possession is a written record of the builder's pre-delivery inspection of the property.  If you are building your own home, your lender will usually require inspections at each stage befor releasing funds, sometimes even if you have a warranty.  The key is: if you are building a new home always check with your lender in advance so that you know about any specific conditions or requirements that may apply.

In Nova Scotia voluntary third party warranty on new homes is available through:

Q - What is Atlantic Home Warranty?

AHW is a not for profit company offering third party warranty on new homes.

Q - How can I get a third party warranty on my new home?

Atlantic Home Warranty offers third party new home warranty through its members. If your new home is built by one of their members, your home will have a third party warranty.  You may also get a third party warranty through a private for-profit new home warranty insurer.

Visit cmhc.ca for a list of new home warranty providers.

If you do not get third party warranty coverage, your home will be covered by any builder’s warranty, and manufacturers’ warranties on products used in building your home.  A builder’s own company warranty usually provides less coverage than a third party warranty package.

Q - How do I know if my home was built by an AHW member?

You can check out www.ahwp.org for a listing of their members in your area or call 902-450-9000 or 1-800-320-9880.

Q - What coverage does AHW offer on my new home?

AHW offers a 7-year limited home warranty package. The aggregate limit of liability under the warranty is $50,000.  This includes a conciliation process in the first year if you and the builder have a disagreement over a construction issue.  Conciliation is a binding, non-court way to resolve disagreements.

AHW also offers a Deposit Protection Certificate up to $20,000 for monies paid directly to the builder. This is intended to protect you against insolvency, fraud or bankruptcy on the part of the builder. 

Without this type of deposit protection, your deposit may not be protected when paying deposits to the builder directly, if your money is not either in a lawyer or realtor's trust account. 

Q - When does the third party warranty coverage start?

Third party warranty coverage through Atlantic Home Warranty begins when you take possession of your new home. You and the builder will sign a Certificate of Completion and/or Possession at the time of closing that will verify the date you took possession of your home.

Q - What types of homes are eligible for coverage with AHW?

Coverage is available for the following:

  • Single detached and semi-detached homes
  • Townhouse
  • Rowhouses
  • Duplexes
  • Manufactured homes
  • Condominiums, including high rise.

Q - I am planning to build my own home.  Can I get a warranty through AHW?

No, only homes built by members of AHW are eligible for the warranty.

Q - Can anybody join AHW?

No, potential members must go through an application process to see if they are qualified for membership. Builders are assessed based on their financial, technical and business skills. Once accepted, they are required to take mandatory training to maintain their membership.   

Q - Where can I get more information?

  • Canada Mortgage and Housing – Contact CMHC online at cmhc.ca, or call 902-426-3530 or 1 800 668-2642
  • Canadian Home Builders’ Association – www.chba.ca/
  • Atlantic New Home Warranty - www.ahwp.org
  • Your lawyer or realtor.

September 2012