Andy Maan · REALTOR® · Royal LePage Magna

What's in an Alberta new-home contract? 12 clauses to understand before you sign

A builder's contract is long, and it is written to protect the builder. You don't need to be a lawyer to read it — but you do need to know what each part means and what to ask. This is information, not legal advice. Have your own real estate lawyer review the contract before you sign.

Quick facts (as of October 27, 2026): Alberta's mandatory new-home warranty is 1 year labour and materials, 2 years delivery and distribution systems, 5 years building envelope, 10 years structural components. Every Alberta residential builder must hold a licence before getting a building permit. The province's Residential Protection Program answers licence and warranty questions at 780-644-1010 or 1-866-421-6929. Everything below follows from those rules — and from the clauses themselves.

1. Who is building

What it is: The builder's legal name, and the warranty provider. Why it matters: Alberta residential builders must hold a licence before getting a building permit, so you can ask to see it. Ask: "Can I see your builder licence and the name of your warranty provider?" The province's Residential Protection Program can answer licence questions: 780-644-1010 or 1-866-421-6929.

2. Price and what's in it

What it is: The base price, the lot, selected upgrades, and a list of what is included. Why it matters: Fences, landscaping, window coverings and appliances are often extra. Ask: "Please give me a written list of what the price includes and excludes." Use our What's included checklist.

3. Deposits

What it is: How much you pay, when, and where it is held. Why it matters: It is your money, and the terms decide what you get back if the deal ends. Ask your lawyer: "Where is my deposit held? Under what conditions is it refundable?"

4. Possession date

What it is: The date you get the keys. It may be an estimate or a firm date. Why it matters: A new build can finish late. Your rental, mortgage rate hold and moving plans depend on it. Ask: "Is this date firm or an estimate? What happens if it moves, and how much notice will I get?"

5. Price adjustments

What it is: Clauses that let the price change after you sign. Why it matters: Common triggers include material costs, lot grading or elevation, lot size, and government charges. Ask: "Under what conditions can the price change after I sign? Is there a cap?"

6. Upgrades and selection deadlines

What it is: The date you must choose finishes, and the price of each choice. Why it matters: Missed deadlines can mean the builder chooses for you, or charges more. Ask: "What are the deadlines, and what happens if I change my mind?"

7. Financing

What it is: Whether the contract depends on your getting a mortgage. Why it matters: A new build can take months, and your approval or rate hold may expire before closing. Ask your mortgage broker: "How long is my rate hold, and what if possession is later than that?"

8. Warranty

What it is: Alberta's mandatory minimum warranty: 1 year labour and materials, 2 years delivery and distribution systems, 5 years building envelope, 10 years structural components. Why it matters: It is what you can claim against after you move in. Ask: "Please give me the warranty provider's booklet and explain how to make a claim."

9. Walkthrough and deficiencies

What it is: The pre-possession inspection and the list of items to fix. Why it matters: How the list is recorded, and what you sign, can affect your later claims. Ask: "How do you record deficiencies, how long do you have to fix them, and what does my sign-off mean?" Use our Walkthrough Kit.

10. Closing costs and adjustments

What it is: Legal fees, registration, and adjustments for things like property tax and utilities. Why it matters: These add up and are paid at closing. Ask: Use our True Cost Calculator and ask your lawyer for an estimate.

11. If something goes wrong

What it is: What happens if you or the builder cancels, and whether you can assign the contract. Why it matters: The remedies are often not equal on both sides. Ask your lawyer: "What do I owe if I cancel, and what does the builder owe if they cannot finish?"

12. Substitutions and changes

What it is: The builder's right to change plans, materials or brands. Why it matters: The home you get may differ from the show home. Ask: "What can you substitute without asking me, and what needs my written approval?"

Want a second pair of eyes on a builder's contract before you sign? Get the free Edmonton Buyer Blueprint and I will walk through it with you. I'm Andy Maan, REALTOR® with Royal LePage Magna. I'm not a lawyer, so I'll also tell you what to take to yours.

How I'm paid: I'm paid a standard commission only if a sale completes. No builder pays me to feature them, and this is not an endorsement.

Last updated: October 27, 2026.