The City of Steinbach building inspector says the province's New Home Warranty Protection Act will come into effect January 1st. It will ensure newly-constructed homes are protected against defects. Jordon Loewen says most local builders already provide home warranty but adds it will be mandatory for all of them in the new year. Loewen says the city will make sure warranty is in place when permits are applied for.

"The only thing that we (the city) need to do is ensure that the applicant for the permit has the warranty in place. All we need to do is go to a website and ensure that that address and property has the warranty in place."

Loewen says people who are doing a self-build still need to apply to the Consumer Protection Office for approval but they do not have to obtain warranty as long as they don't sell the property for seven years.

"You still need to apply to the Consumer Protection Office for a new home build and there's still a fee but you do not have to obtain warranty. If, for whatever reason, you need to sell before seven years is up, you change jobs or someone dies and you have to get rid of the house, you then have to somehow obtain warranty after the fact which could be difficult and expensive. There are four or five warranty providers in the province and I think there's only one of them that do it (after the fact) and it's quite a bit more expensive than applying for it at the beginning of the project."

The warranty covers defects in materials, labour and design for one year. Violations and defects in electrical, plumbing, heating, ventilation, air conditioning, exterior cladding, caulking, windows, doors and the building envelope, including defects resulting in water penetration, are covered for two years.