Protecting Homebuyers: The Consumer Protection Provision

What is the Consumer Protection Provision?

The Consumer Protection Provision helps protect homebuyers from unethical or illegal business practices. Under this provision, the Registrar can refuse to issue or renew a residential builder licence if the builder has a history of serious legal or business misconduct.

When Can a Builder’s Licence Be Refused?

A licence may be refused if the applicant – or any person in control of the company – has:

Note: BC Housing does not enforce these laws directly (excluding the Homeowner Protection Act) and cannot impose penalties under them. However, published findings from a court or regulator may be considered when reviewing a builder’s licence. Enforcement of the Homeowner Protection Act is handled through a separate process.  To report a concern related to this Act, visit Report a Violation. 

Applicant Disclosure Requirements

All licence applicants, including renewing licensees, must disclose any breaches listed under the Consumer Protection Provision on their application.

Applicants do not need to disclose:

  • Complaints, investigations, or lawsuits that have not resulted in a conviction, order, or disciplinary action by a court or regulatory body
  • Legal actions that were settled out of court
  • Disciplinary actions that were overturned on appeal

For more details, see Regulatory Bulletin 11: Consumer Protection Disclosure Requirement

How to Report a Builder under the Consumer Protection Provision

If you have information about a builder that may fall under the Consumer Protection Provision, you can report it to BC Housing.

Step 1: Submit the Report

Email the information to [email protected] and include:

  • Your name and contact information
  • The name of the builder involved
  • A description of the issue
  • Any supporting documents or evidence

Privacy and disclosure: BC Housing is subject to the Freedom of Information and Protection of Privacy Act (FIPPA). Your identity will be protected as much as the law allows. Investigators may need to share details of the issue (but not your identity) with the builder.
 

Step 2: Verification

We verify that the report:

  • Relates to the laws listed above (excluding the Homeowner Protection Act)
  • Is based on a published decision (e.g. an order, penalty, conviction, or judgment)
  • Falls within the required timeframe
Step 3: Review

The Registrar reviews the verified report and considers:

  • The harm caused
  • Actions taken to fix the issue
  • Changes to business practices
  • Patterns of behavior
  • Risk to future homebuyers

We may contact you or the builder for additional information. Reviews are confidential and progress updates are not provided.  

Step 4: Possible Outcomes

Outcomes of the review may include:

  • Licence denied or not renewed – for serious or repeated problems.
  • Conditional licence – may include limits on registering homes or requirements for training.
  • No action – if the issue is low risk or does not indicate a pattern of harmful behavior.
  • Private follow-up – such as internal warnings, monitoring, or requests for corrective action.

Information collected during a review may also be used in broader assessments of the builder’s conduct and may inform future decisions.

Note: This provision is intended to prevent future harm, not punish past misconduct or provide financial compensation. Penalties or compensation must come from the regulator or court responsible for enforcing the relevant legislation. 
 

Step 5: Licence Status Updates

After a decision is made, BC Housing updates the Licence Registry to reflect any changes to a builder’s licence status – such as denial, non-renewal, or the addition of conditions.

  • The licence status is publicly visible.
  • The specific reasons for the decision or any private actions taken are not disclosed.
  • Some outcomes – such as internal warnings or increased oversight – do not appear in the registry but still reflect meaningful action.

If the builder has been penalized for non-compliance with the Homeowner Protection Act, those penalties are listed in the Enforcement Registry.

Limitations of the Consumer Protection Provision

Many disputes between homeowners and builders are contractual – such as disagreements about payment, timelines, workmanship, or scope of work. These matters fall outside of BC Housing’s authority.

The Consumer Protection Provision only applies if a court or regulatory body has issued a formal judgment or decision.

For help with contractual disputes:

For a full overview of what BC Housing can and cannot investigate – including guidance on where to direct other types of concerns – visit the Builder Conduct page.