Strata Tip of the Week - New Home Warranties in Strata Corporations

The BC Home Owner Protection Act requires that all newly built homes (including strata properties) to be covered by third-party new home warranty insurance. You may often hear this referred to as the “2-5-10 New Home Warranty”. Basic coverage typically includes:

• 15 months for defects in labour and materials
• 2 years for building cladding and delivery systems (plumbing, HVAC, etc.)
• 5 years for building envelope defects
• 10 years for structural defects

When hearing that a strata corporation is working on addressing warranty defects, we typically see this as a good thing. The reality is that almost no building is built with zero defects, and addressing problems while the warranty coverage is still active shows that the strata is being proactive and committed to addressing deficiencies, while still under warranty.

Finding no information pertaining to the building's warranty is therefore worrisome. As part of the review process, we always recommend that consumers obtain the strata corporation’s warranty certificate, as well as all documents and reports pertaining to the warranty and any warranty claims. By doing so, consumers are able to better understand the actions the strata has taken when it comes to warranty deficiencies, as well as get a better sense of the extent of warranty deficiencies that the strata has been dealing with.