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Building or renovating
Builder bankruptcy

What happens to your warranty if your home builder goes out of business?

Learn more about The New Home Warranty Act and how it can protect you.
Building or Renovating | Builder Bankruptcy - Consumer Protection Office

You've moved into your new home. It's been a lifelong dream and everything has been working out great. But a few months after moving in, you notice some water on the basement floor or maybe a crack appears in your living room wall. You call your builder to ask about the warranty, only to find out that the builder has filed for bankruptcy. What happens now?

Fortunately, if you own a new home and your builder is unable or unwilling to repair construction-related defects, you are protected by The New Home Warranty Act. This Manitoba legislation ensures all new home warranties will be honoured, even if the builder becomes insolvent or faces bankruptcy proceedings. The act requires that:

  • Building permits for new home construction cannot be granted unless the builder has arranged for an independent warranty provider.
  • Independent warranty providers must be registered and must carry insurance that will cover warranty claims even if they are unable to do so.

Find more information about new home warranties in Manitoba and what they cover at //web2.gov.mb.ca/laws/statutes/2013/c02313e.php.

For more information or if you have questions you can visit the Manitoba Consumer Protection Office website at manitoba.ca/cca/cpo or see the contact us page for additional contact information.
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