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What does the Alberta New Home Warranty Program (ANHWP) provide?

Correct Answer

D) Coverage of 1-year materials and labour, 2-year delivery and distribution systems, 5-year building envelope and 10-year structural defects

The Alberta New Home Warranty Program provides tiered warranty coverage for new homes: 1 year for materials and labour defects, 2 years for delivery and distribution systems (plumbing, electrical, heating), 5 years for building envelope protection, and 10 years for major structural defects. All new home builders in Alberta must provide warranty coverage.

Answer Options
A
Free home maintenance for the first year, provided by the builder under the warranty program
B
Insurance against property value decline if the local market falls after purchase
C
A guarantee that the builder will complete the home on time, with the program compensating buyers for any delays
D
Coverage of 1-year materials and labour, 2-year delivery and distribution systems, 5-year building envelope and 10-year structural defects

Why This Is the Correct Answer

Under Alberta's New Home Buyer Protection Act, all new homes must have warranty coverage. The tiered structure provides: 1 year for materials and labour, 2 years for delivery and distribution systems (plumbing, HVAC, electrical), 5 years for building envelope (weather resistance), and 10 years for major structural defects. Builders must be licensed and registered.

Why the Other Options Are Wrong

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Key Terms

new home warranty1-2-5-10New Home Buyer Protection Actbuilder registration
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