Signing a new construction purchase agreement is one of the most significant financial commitments a buyer makes. Unlike a resale purchase agreement, a new construction contract in Alberta is prepared by the builder and reflects the builder's standard terms and conditions.
Before you sign, there are several key areas worth reviewing carefully with your REALTOR® and a real estate lawyer. Here is a practical overview of what to pay attention to. This article is intended for general educational purposes only. It does not constitute legal advice and should not be relied on in place of a review by a licensed Alberta real estate lawyer. Contract terms and provisions vary by builder and by individual agreement.
1. Possession Date and Adjustment Provisions
One of the most important sections of any new construction contract is the possession date — and the provisions that allow it to change.
Builder contracts in Alberta commonly include clauses that allow for possession date adjustments under certain conditions. This is standard in the industry, but buyers should understand what those conditions are, how much notice the builder is required to provide, and whether there are any provisions in place if timelines shift significantly.
If you have a hard deadline — such as a lease ending or a sale completing on your current home — this section is particularly important to review before signing.
2. Deposit Requirements and Refund Conditions
Builder contracts typically require one or more deposits during the purchase process. Key questions to understand before signing include:
How much is required and when?
Under what conditions is the deposit refundable?
Under what conditions could the deposit be at risk?
How is the deposit held — in trust or otherwise?
Your real estate lawyer can review the deposit conditions and explain what they mean in the context of Alberta's legal framework.
3. What Is Included in the Base Price
Builder contracts should clearly define what is included in the purchase price and what is considered an upgrade or option subject to additional cost. This includes structural features, appliances, finishes, and exterior elements such as landscaping, fencing, and driveway completion.
Understanding exactly what you are buying at the base price — and what will cost extra — helps you budget accurately before signing.
4. Upgrade and Design Selection Terms
If you are purchasing a pre-sale home and will be making upgrade and finish selections, the contract should outline the process, timeline, and terms around those selections. Key areas include:
When upgrade appointments are scheduled
What happens if selections are not made within the specified timeframe
Whether upgrade pricing is fixed at the time of signing or subject to change
What allowances, if any, are included in the base price
5. Warranty Coverage
New homes in Alberta are covered under the Alberta New Home Warranty Program. Your builder contract should reference this coverage, which includes:
One year on labour and materials
Two years on mechanical delivery and distribution systems
Five years on building envelope
Ten years on major structural components
Understanding what is covered and for how long helps you know what recourse is available to you after possession. Exact terms can vary by warranty provider and builder — confirm the specific coverage and any exclusions that apply to your home with your lawyer or the warranty provider directly
6. Price Adjustment Clauses
Some new construction contracts include clauses that allow the purchase price to be adjusted under certain conditions — for example, increases in material costs or changes in applicable taxes. Review this section carefully and discuss it with your real estate lawyer to understand whether and under what circumstances the price you agreed to could change before possession.
7. Assignment and Resale Restrictions
Some builders include clauses in their contracts that restrict or regulate your ability to assign the purchase agreement to another buyer or resell the home within a certain period after possession. If you have any intention of reselling or assigning the contract before or shortly after possession, review this section carefully.
8. Builder's Right to Make Changes
Builders sometimes include provisions that allow them to make substitutions to materials, finishes, or features if specified items become unavailable. Understanding the scope of those provisions and what the builder's obligations are around notifying you of changes is worth reviewing before you sign.
Always Have a Real Estate Lawyer Review the Contract
This is not optional. A real estate lawyer reviews the builder contract independently from your REALTOR® and provides legal advice on the terms and conditions before you sign. Your REALTOR® can walk through the contract with you and flag areas to discuss — but legal advice on a binding contract should come from a qualified lawyer.
Working Through a Builder Contract With Jay Lewis
Jay Lewis is a REALTOR® with RE/MAX Excellence (Lewis & Co. Realty) who works with buyers on new construction purchases across Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove, and Stony Plain.
With over 20 years of construction experience. Jay is familiar with new construction and the process that follows signing — from upgrade selections through to possession walkthrough. His role is to help you understand the process and flag areas worth raising with your lawyer before you sign.
If you are considering purchasing a new home and would like to discuss it, Jay is available to help.
Call or text Jay at 780-220-8449, or visit jaysells.ca.
Jay Lewis | REALTOR® | RE/MAX Excellence | Lewis & Co. Realty