Buying a presale home in Victoria, BC, is an exciting step toward owning your dream property, but it can also come with many questions—especially regarding the warranty. Understanding what’s covered, what isn’t, and how to protect yourself through the home-buying process is crucial.
In this comprehensive guide, we’ll break down the key aspects of the warranty on your presale home, so you can feel confident and informed when you purchase.
What Is a Presale Home Warranty?
A presale home warranty is a guarantee the developer provides that covers certain aspects of the home after you take possession. It’s a form of protection that ensures your new property is free from major defects and problems for a certain period, offering peace of mind and financial security as you settle into your new home.
In British Columbia, the law requires all new homes to come with a warranty, including presale properties. These warranties are designed to protect homebuyers from faulty workmanship, materials, or major issues that might arise after moving in.
Types of Warranties You’ll Encounter
1. Homeowner Protection Office (HPO) Warranty
In BC, the Homeowner Protection Office (HPO) requires that all new homes be covered by a mandatory warranty. This warranty typically includes three levels of protection:
- 2-Year Coverage on Materials and Labour: This covers defects in materials and labor, such as faulty plumbing, electrical systems, or structural issues. This period starts the day you take possession of the home.
- 5-Year Coverage on the Building Envelope: This covers significant issues with the home’s exterior, such as the roof, windows, and foundation. If there’s a leak or water penetration issue, the warranty typically covers repairs.
- 10-Year Structural Warranty: This is the most comprehensive coverage, protecting against major structural defects like cracks in the foundation, load-bearing walls, or major roof issues.
2. Developer’s Warranty
In addition to the mandatory HPO warranty, many developers provide their own warranties for the presale properties they sell. These warranties may vary and offer more specific coverage on items such as appliances, HVAC systems, and interior finishes.
Before committing to a presale property, always ask the developer for the full details of their warranty. Read through the terms to understand exactly what’s covered, what isn’t, and how to make a claim if needed.
Key Aspects of the Warranty on Your Presale Home
1. What’s Covered?
While the specifics will vary depending on the warranty, here are some common issues that most presale home warranties cover:
- Defects in Workmanship: This includes poor-quality materials or issues with how the home was constructed. For example, crooked doors or windows that don’t seal properly might fall under this category.
- Structural Issues: Major defects with the home’s foundation, load-bearing walls, or roof are typically covered under the 10-year structural warranty.
- Waterproofing & Building Envelope: Issues related to leaks, water penetration, or poor insulation in the roof, windows, and foundation will likely be covered under the 5-year warranty for building envelope problems.
- Defects in Major Systems: The plumbing, electrical, and heating/cooling systems are often covered under the 2-year warranty, protecting against major failures or problems.
2. What’s Not Covered?
It’s important to note that while warranties cover a lot, they don’t cover everything. Common exclusions include:
- Normal Wear and Tear: Things like worn carpets, chipped paint, or minor dings and scratches are not covered by warranties. Maintenance of these items falls to the homeowner.
- Damage Caused by Homeowners: If you cause damage to your home, such as accidentally breaking an appliance or damaging a wall during a renovation, this will not be covered.
- Changes or Additions: If you or a contractor make changes to the home after possession, those modifications typically won’t be covered under the warranty.
- Appliance Defects: In many cases, warranties only cover the structural aspects of the home. Appliances may come with their own manufacturer warranties, but issues like a faulty dishwasher or stove may not fall under the home’s warranty.
3. Maintenance Obligations
While the warranty covers defects and major issues, it’s important to know that you, as the homeowner, will need to maintain the property to avoid voiding the warranty. This includes routine tasks such as:
- Cleaning gutters regularly
- Inspecting plumbing and HVAC systems
- Ensuring the foundation is free from cracks or shifting
- Maintaining the exterior to prevent water damage
Most developers will provide a maintenance manual, outlining the tasks you should do to keep your home in good condition.
How to Make a Warranty Claim
If you discover a problem with your presale home that you believe is covered by the warranty, it’s essential to act quickly and follow the proper steps:
1. Document the Issue
Take clear photos and note the date and description of the issue. The more documentation you can provide, the smoother the claim process will be.
2. Notify the Developer or Builder
Contact the developer or builder as soon as you notice an issue. Keep a record of all communication, including emails and letters. Developers typically have a specific process for making warranty claims, and you’ll need to follow their guidelines.
3. Submit a Claim
Most builders and developers will have an online portal or a formal claim process for submitting warranty requests. Make sure to complete all required forms and provide supporting documentation (photos, written descriptions, etc.).
4. Get an Inspection
In some cases, the builder may want to inspect the issue before determining whether it’s covered by the warranty. Be sure to schedule the inspection promptly and provide access to the affected areas.
5. Follow Up
Once a claim has been submitted, follow up regularly to ensure timely resolution. If you don’t hear back within the time frame outlined in your warranty, don’t hesitate to send a polite reminder.
What to Do if Your Claim Is Denied
Sometimes, warranty claims are denied due to misunderstandings, insufficient documentation, or exclusions in the fine print. If this happens:
- Review the Warranty Agreement: Make sure the issue falls within the scope of coverage outlined in your warranty.
- Seek Mediation: If you believe your claim has been wrongly denied, you may be able to seek mediation through the Homeowner Protection Office or the BC Real Estate Association.
- Consult a Lawyer: If you’re still facing issues, consult with a real estate lawyer to explore your options.
Why Having a Warranty Is So Important
A presale home warranty gives you the peace of mind of knowing that, if something goes wrong after moving in, you won’t be left with a huge repair bill. With so many moving parts involved in the construction of a new home, having a warranty ensures that you’re not financially responsible for significant repairs due to construction defects, water damage, or structural issues. It’s one of the key benefits of buying a presale home rather than a resale property.
Final Thoughts
Understanding the warranty on your presale home is vital to ensuring your investment is protected. By knowing what’s covered, how to make claims, and your maintenance responsibilities, you can enjoy your new Victoria home with peace of mind. Always make sure to review the warranty documentation thoroughly before purchasing, and don’t hesitate to ask your developer or real estate agent for clarification on any aspect of the warranty.
Buying a home is one of the biggest investments you’ll ever make—be sure to protect it.
If you have any more questions about presale homes in Victoria or want to learn more about available presale properties, don’t hesitate to contact us at Victoria New Homes Group. We’re here to help you navigate every step of the journey, from purchase to possession.
