Hawthorne Enterprises Ltd. (“HEL”), William Soo (“Soo”), Vicky Cheung (“Cheung”), Raymond Zheng (“Zheng”), and Zi Heng Zhang (“Zhang”), built or caused to have built a new home in Vancouver, BC (the “New Home”), during the period of, or about, January 2020 and September 2021. HEL, Soo, Cheung, Zheng, and Zhang are a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) (37712) and obtained a commitment from an approved home warranty insurer on January 27, 2020, to provide home warranty insurance (“HWI”) on the New Home as required by the Homeowner Protection Act (the “Act”) and the Homeowner Protection Act Regulation (the “Regulation”). Construction commenced on the New Home and then the New Home was de-enrolled from HWI coverage by the home warranty insurer on October 4, 2021. This was contrary to section 22(1) of the Act since HEL, Soo, Cheung, Zheng, and Zhang were found to have managed all or substantially all of the construction on the New Home. On June 1, 2022, BCH issued Compliance Order 22-0009 to HEL, Soo, Cheung, Zheng, and Zhang directing that HEL, Soo, Cheung, Zheng, and Zhang immediately:
- register the New Home for coverage by HWI provided by a warranty provider pursuant to section 22(1) of the Act; or
- provide BCH Compliance Department with proof that the New Home is enrolled in a policy of HWI pursuant to section 22 of the Act.
HEL, Soo, Cheung, Zheng, and Zhang were ordered to comply with Compliance Order 22-0009 by July 8, 2022.