Important new rules for New Building Warranties

    

Healthy Living, Seniors and Consumer Affairs Minister Jim Rondeau announces plans for new mandatory warranties that would protect Manitoba families purchasing newly constructed homes. Gloria Desorcy, executive director of the Consumers’ Association of Canada (Manitoba) and Mike Moore, president of the Manitoba Home Builders’ Association, were also on hand for the event.

November 22, 2012

PROVINCE TO INTRODUCE MANDATORY WARRANTIES THAT WOULD HELP EASE THE STRESS OF BUYING A NEW HOME

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Consultations with Industry, Consumer Groups Generated Ideas: Rondeau

The province has a plan for new mandatory warranties that would protect Manitoba families purchasing newly constructed homes, Healthy Living, Seniors and Consumer Affairs Minister Jim Rondeau announced today.
“For many Manitobans, buying a new home is one of the most important investments they will make for their families’ future,” said Rondeau.  “Our plan will help protect Manitobans buying a new home with better, extended warranty protection against construction-related defects.”
Since launching the five-year consumer protection strategy, the Manitoba government has consulted with builders, warranty providers, engineers, architects and representatives of the Consumers’ Association of Canada, the Canadian Condominium Institute and the Manitoba Bar Association on how to better protect consumers.
“New home buyers are making significant financial investments and as a result are particularly vulnerable consumers,” said Gloria Desorcy, executive director of the Consumers’ Association of Canada (Manitoba).  “This new plan for mandatory home warranties will ensure Manitobans who experience construction-related problems on new homes are protected.”
The minister said that new home builders would be required to secure a warranty on new houses and condominium properties issued by a third-party warranty provider.  The minimum warranty coverage would be higher than that currently offered under existing voluntary home warranty programs.
The improved protections have the support of the Manitoba Home Builders’ Association.
“This move will promote professional building methods and put everyone on equal footing,” said Mike Moore, president of the association.  “It’s a positive step for builders and new home buyers alike.”
The minister said that new protections would cover:

• any defects in labour, materials and design in houses and condominium units for one year, and condominium common elements for 15 months;
• major systems such as electrical and plumbing, and building code violations resulting in unreasonable health or safety risks or material damage to the home for 24 months; and
• defects in the building envelope, including water penetration, for two years and structural defects for seven.

“This is a part of ongoing commitment to protect Manitoba consumers and ensure there’s fairness,” said Rondeau.  “We’ve introduced clearer rules for cell phone contracts, payday loans, debt settlement agency fees and car repair bills and I’m pleased to be moving forward with stronger protections for new home buyers.”

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