You don't have to go far to capture the view of the ubiquitous new builds of condo towers and townhomes around the lower mainland. Cranes, metal framework, trucks and johnny cans are everywhere. Depending on wants, needs and bank account many buyers may choose to purchase new construction over resale. New construction in the case of strata/multifamily dwellings can only qualify for new home warranty if built by residential builders "licensed under the Homeowner Protection Office (HPO) and covered by a police of home warranty insurance".  Owner builders do not fall under mulitfamily builds.

 

New construction is subject to HST and can add considerable cost to the purchase. A resale unit (condo or townhome) may therefore, look appealing especially if the unit is still fairly new. The first purchaser has already paid the HST. The 2-5-10 Year Home Warranty has become pervasive in all advertising and promotion for all homes listed which are less than 10 years old. Frequently a listing will note that there is a "balance of 2-5-10". But what exactly is in the 2-5-10 and what's covered. By the way, BC's home warranty coverage is the best in the nation.

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One of the trickier bits of the the 2-5-10 is the "2 year" component. While it states that there is a minimum of 2 years on labour and material you need to read the warranty. It states:

 

"Any defect in materials and labour:

 

-     12 months on detached homes and on non-common property in strata units (includes fee simple homes)

-     15 months on common property of strata buildings

 

Defects in materials and labour related to the delivery and distribution systems (electrial, plumbing, heating, ventilation, air conditioning, etc):

 

- 24 months for all buildings".

 

This means that after 12 months (1 year by my math) alot is no longer covered. As for the interpretation of "defect" - an instructor shared his best understanding as such: "A defect = is something that is no longer works that originally did". There are exclusions to defects that meet the criteria to qualify such as "normal wear and tear" (not sure what this actually means as what is normal wear and tear for a family of 4 is different than a couple); normal shrinkage or materials from construction; damaged caused by anyone other than the residential builder; labour, material and design supplied by the owner; damage caused by insects or rodents; failure of an owner to prevent or minimize damage and acts of nature.

 

So, it's really a 1-2-5-10 home warranty. So, when you're considering what's left on the 2-5-10 on a home less that 2 years old, note that most of the 2 year portion is likely not in play after 12 months anymore except those things that relate to those delivery and distribution systems as noted above. That said, you may have a builder/developer who will still take care of the lifting floor after 12 months, but as per the warranty they don't have to.