Short answer: Before you sign a builder's purchase agreement in Alberta, check eight things: possession date and delay terms, deposits and how they're protected, what's included in the price, upgrade and selection terms, warranty coverage, price-adjustment clauses, assignment and resale limits, and the builder's right to make changes. Have an Alberta real estate lawyer review it before it becomes firm.
By Jay Lewis, REALTOR® | RE/MAX Excellence · Updated September 26, 2026
This article is part of my Edmonton New Construction Buyer’s Guide.
Free download: my New-Construction Buyer Checklist. Two printable pages, from your first show home visit to your one-year warranty, including the contract questions to ask before you sign.
A builder contract is not the same as a typical resale purchase agreement. It's prepared for the builder and can contain detailed terms covering deposits, possession delays, upgrades, price adjustments, substitutions, warranty coverage and your ability to assign or resell the contract. Before making the agreement firm, you should understand exactly what's included in the price, what can still change, what deadlines you're agreeing to, and what happens if the build or possession doesn't go as expected.
With more than 25 years in new construction, on the trades and sales sides, I pay particular attention to the specifications and construction details that are easy to overlook when the focus is on floor plans and finishes. I can help you work through the process and identify questions to raise, but a qualified Alberta real estate lawyer should give you legal advice on the contract itself.
Quick checklist: builder contract in Alberta
Possession date: fixed or estimated? What notice, reasons and maximum extension apply?
Deposits: how much, when, refundable when, and how protected?
Price: exactly what's included, and does it include GST and any rebate?
Upgrades and selections: deadlines, allowances, deposits and substitutions
Warranty: who the provider is, and what the coverage and exclusions are
Price adjustments: can the price change before possession?
Assignment and resale: permitted, fees, builder approval?
Builder changes: materials, plans, grading and exterior features
Conditions: financing, sale of your home, lawyer review
1. How firm is the possession date?
The possession date in a builder contract isn't always guaranteed the way buyers expect with a resale purchase. A new-construction agreement may give the builder the right to extend or adjust possession for reasons such as construction delays, trade availability, material shortages, permitting, inspections, weather or other circumstances described in the contract.
Before signing, understand:
Whether the possession date is fixed, estimated or subject to extension
How much notice the builder must provide if possession changes
What reasons allow the builder to delay possession
Whether there's a maximum extension period
What happens to your deposit if the delay becomes significant
Whether you have any right to terminate the agreement after a certain point
How a delay could affect your mortgage approval, rate hold, current lease or the sale of your existing home
Don't assume the date on the front page of the agreement is guaranteed. If you have a hard deadline, such as a lease ending or a sale closing on your current home, have your lawyer explain the possession and extension clauses before the agreement becomes firm.
2. How are deposits paid and protected?
Builder contracts usually require one or more deposits. Before signing, understand:
How much is required, and when
When the deposit is refundable, and when it could be at risk
Who holds the deposit, and whether it's held in trust
Whether the deposit is covered by deposit protection, and up to what amount
Protection differs by home type. For new condominium units, Alberta's Condominium Property Act requires deposits to be held in trust. For other new homes, such as single-family homes, protection depends on the builder and the coverage offered through its warranty provider, so ask how your deposit is protected, and to what limit, before you pay it. Your real estate lawyer can explain what the deposit terms mean for you.
3. What's actually included in the price?
A builder's advertised price doesn't always tell you the total cost of getting the home to the condition you expect at possession. Confirm exactly what's included and what costs extra. Depending on the builder and property, this can include:
Lot premiums
GST, and whether any GST rebate has already been assumed
Appliances
Flooring and cabinetry allowances
Lighting and plumbing fixtures
Air conditioning
Garage heater or electrical upgrades
Decks, fencing and landscaping
Driveway, sidewalks and exterior concrete
Window coverings
Basement development
Architectural or community requirements
If an item, finish or upgrade matters to you, make sure the agreement or its schedules clearly identify it. Don't rely on a conversation or on what you saw in the show home. Eligible first-time buyers may qualify for significant GST relief on a new home; see my 2026 Alberta new-home GST rebate guide for the current rules and how it's handled at closing.
The number I want buyers comparing isn't the builder's base price. It's the all-in cost of getting the home to the condition you actually want.
4. What are the upgrade and design selection terms?
If you're buying before construction is complete, design selections can change the final price significantly. Before signing, clarify:
When design and upgrade appointments must be completed
Which selections are included in the base price, and whether allowances are fixed dollar amounts
How much upgrades require as a deposit, and whether upgrade deposits are refundable
Whether upgrade pricing is guaranteed once selected
What happens if a selected product becomes unavailable, and whether the builder can substitute without your approval
How late changes or missed deadlines are handled
Whether structural changes must be selected before a specific construction stage
Show homes often contain optional finishes and upgrades. Ask the builder to identify what's standard, what's upgraded and what each significant upgrade will cost in your home. Keep copies of every signed selection sheet, change order and revised price summary; they should match the final contract and closing figures. For help deciding, see which new home upgrades are worth it.
5. What does the new home warranty cover?
New homes in Alberta must have warranty coverage that meets the minimums under the New Home Buyer Protection Act. Coverage is provided through approved warranty providers and includes at least:
1 year: labour and materials
2 years: delivery and distribution systems, such as electrical, plumbing, heating, ventilation and air conditioning
5 years: building envelope
10 years: major structural components
Coverage details, exclusions and claim procedures vary by warranty provider, so review the warranty documents for your specific home. You can also confirm the builder is licensed through Alberta's public builder registry.
6. Can the price change before possession?
Some 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 with your lawyer so you understand whether, and when, the price you agreed to could change before possession.
7. Can I assign or resell the contract?
Some builder contracts restrict assigning the agreement to another buyer before possession, or reselling the home for a period after possession. Even if you expect to keep the home, circumstances can change during construction. Before signing, understand:
Whether assignments are permitted at all, and whether the builder's written approval is required
Whether there's an assignment fee, and whether the builder can refuse
Whether there are restrictions on marketing the property before possession
Whether resale is restricted for a period after possession
What happens if your circumstances change and you can't complete the purchase
Assigning a new-construction contract can also have tax and financing implications, so review those separately with the appropriate professionals.
8. Can the builder make changes to my home?
Builder contracts often allow some changes during construction, especially when a specified product, material or finish becomes unavailable. Before signing, understand:
Whether the builder can substitute materials, fixtures or finishes, and whether substitutes must be of similar quality or value
Whether you must be notified before a substitution, and whether you have approval rights for significant ones
Whether the builder can change plans, dimensions or specifications
Whether site conditions can change grading, retaining walls, steps or exterior features
Some changes in new construction are reasonable or unavoidable. The key is understanding how much discretion the contract gives the builder, and what protection you have if the finished home differs materially from what you expected.
Should a lawyer review my builder contract?
Yes. A builder contract can create obligations very different from a resale purchase agreement. Before it becomes firm, have a qualified Alberta real estate lawyer review it and explain anything you don't fully understand, including the deposit, title, warranty, possession terms, price adjustments, assignment restrictions and closing obligations. I can help you understand the process, compare builder terms and identify questions worth raising, but legal advice should come from your lawyer.
Get my free New-Construction Buyer Checklist
Thinking about a new build? My free, printable 2-page checklist covers what to check at every stage, from your first show home visit to your one-year warranty.
Frequently asked questions
Is a builder's possession date guaranteed?
Not always. Many builder contracts allow the date to be extended for reasons listed in the agreement. Check the notice period, the reasons allowed and any maximum extension before you sign.
Can I negotiate a builder contract?
Sometimes. Builders use their own standard forms, but price, inclusions, upgrades, possession timing and conditions can sometimes be discussed, especially on quick-possession homes. What's possible varies by builder and market conditions.
Do I need my own REALTOR® to review a builder contract?
It isn't required, but having your own representation means someone is looking out for your interests when you compare terms. See Do I need a REALTOR® to buy a new build in Edmonton?
Working through a builder contract with me
If you're considering a builder purchase in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove or Stony Plain, I can help you compare the contract, specifications, upgrades and overall value before you make the agreement firm. Call or text me at 780-220-8449, or book a 20-minute call.
Jay Lewis | REALTOR® | RE/MAX Excellence
Sources:Government of Alberta: new home warranty · Alberta public builder registry · Canada Revenue Agency: First-Time Home Buyers' GST/HST rebate
This article is general information, not legal advice. Have a licensed Alberta real estate lawyer review any purchase agreement before you sign.
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