Guide · Calgary new builds
Understanding Your Builder Contract
Key clauses, red flags, and negotiation points in Alberta new home purchase agreements. Know what you're signing before you commit.
Builder contracts are lengthy and favor the builder. Have a real estate lawyer review yours before signing. This guide helps you understand key terms and potential issues.
Critical Contract Elements
These sections have the biggest impact on your purchase. Pay close attention to each.
Purchase Price & Inclusions
Verify exactly what's included in the base price vs. what you're paying extra for.
Checklist:
- - Base price clearly stated
- - Lot premium itemized separately
- - GST included or excluded?
- - Standard features list attached
- - Upgrade pricing locked or estimated?
- - Any allowances (appliances, landscaping)?
Completion Date & Delays
Builders often have significant flexibility on completion dates. Understand the implications.
Key Questions:
- - Is the completion date firm or estimated?
- - How much delay is builder permitted?
- - What compensation for significant delays?
- - What counts as "force majeure"?
- - Can you cancel if delayed beyond X months?
- - What notice period before possession?
Deposit Structure & Protection
Deposits can total $50,000+ over the build period. Know how they're protected.
Verify:
- - Total deposit amount and schedule
- - Are deposits held in trust?
- - Insurance coverage if builder defaults?
- - Conditions for deposit return
- - Alberta New Home Warranty deposit protection
Contract Red Flags
Watch for these problematic clauses that heavily favor the builder.
Unlimited Substitution Rights
Clauses allowing builder to substitute materials "of equal or better quality" without approval. This can result in different finishes, fixtures, or appliances than you selected.
Ask for: Written approval requirement for substitutions, or specific brand/model commitments.
One-Sided Cancellation Terms
Builder can cancel for many reasons, but buyer forfeits deposit if they cancel. Look for unreasonably broad builder cancellation rights.
Ask for: Clear, limited cancellation scenarios and fair deposit return terms.
Unlimited Delay Provisions
Some contracts allow delays of 12+ months with no buyer recourse. This can wreak havoc on your finances, existing lease, and mortgage approval.
Ask for: Maximum delay period with right to cancel and full deposit return.
Mandatory Arbitration
Clauses requiring all disputes go to arbitration (often with builder-selected arbitrators) instead of courts. This limits your legal options.
Ask for: Option to pursue legal action for significant disputes.
Waiver of Walkthrough Rights
Some contracts limit your right to document deficiencies or bring an inspector to pre-possession walkthroughs.
Ask for: Clear right to thorough walkthrough with professional if desired.
Price Escalation Clauses
Clauses allowing builder to increase price due to material cost increases. Can result in unexpected thousands added to your purchase price.
Ask for: Fixed price guarantee or capped escalation percentage.
Important Schedules & Attachments
These documents are part of your contract. Ensure they're complete and accurate.
Schedule A: Specifications
- - Complete list of included features
- - Flooring types by room
- - Cabinet styles and finishes
- - Countertop materials
- - Fixture specifications
- - Appliance brands/models
Schedule B: Upgrades
- - Itemized upgrade list
- - Price for each upgrade
- - Room-by-room breakdown
- - Electrical upgrades
- - Structural changes
- - Total upgrade cost
Schedule C: Lot Information
- - Lot dimensions
- - Lot premium amount
- - Easements or encumbrances
- - Grading requirements
- - Setback requirements
Floor Plans
- - Architectural drawings
- - Room dimensions
- - Elevation (exterior) selections
- - Site plan showing lot placement
- - Any modifications requested
Deposit Protection in Alberta
Alberta New Home Warranty Program
All new homes in Alberta must be enrolled in the warranty program, which includes deposit protection.
Protection Includes:
- - Deposits up to $100,000
- - If builder goes bankrupt
- - If builder fails to complete
- - Major structural defects (10 years)
Verify:
- - Builder is registered
- - Your home is enrolled
- - You receive enrollment certificate
- - Warranty number assigned
Negotiable vs. Non-Negotiable
Often Negotiable
- +Upgrade pricing and packages
- +Appliance allowances
- +Closing cost credits
- +Deposit schedule timing
- +Assignment clause (ability to sell contract)
- +Extended warranty items
Rarely Negotiable
- -Base price (in hot markets)
- -Standard contract terms
- -Delay/force majeure clauses
- -Warranty terms (statutory)
- -Building code requirements
- -Community architectural guidelines
Before You Sign Checklist
Source note
- Sources
- Jurisdiction
- Alberta, Canada (Calgary and surrounding municipalities)
- Applies to
- New construction homes purchased from a builder in Calgary and the surrounding Alberta municipalities.
- Last reviewed
- 2026-09-03
- Limitations
- General information written for Alberta buyers. It does not describe any specific builder's contract, any specific lot, or your financial situation.
- What you should verify
- The exact wording of your purchase agreement, the builder's current incentive sheet, warranty enrolment for the specific home, and any figure you intend to rely on.
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