J. Simons Management and Development Ltd. (“JSMDL”) and Jeffery Simons (“Simons”) constructed 20 new homes (collectively, the “New Homes”) contained within a multi-unit building in Vancouver, B.C. (the “Property”), between the period of, or about, October 1, 2009, and January 9, 2014. Although JSMDL was approved as a Homeowner Protection Office (“HPO”) Licensed Residential Builder (“LRB”)(332093) between September 9, 2009, and July 31, 2014, and obtained a commitment from an approved home warranty insurer on September 9, 2009, to provide home warranty insurance on each of the New Homes as required by the Homeowner Protection Act (the “Act”) and the Homeowner Protection Act Regulation (the “Regulations”), the New Homes were de-enrolled from home warranty insurance coverage by the home warranty insurer on April 4, 2013, contrary to section 22(1) of the Act. On January 27, 2016, the HPO issued Compliance Order 16-0006 to JSMDL and Simons directing that JSMDL and Simons:
- immediately apply for and become an HPO LRB pursuant to section 14(1) of the Act, and register each of the New Homes for coverage by home warranty insurance provided by a warranty provider pursuant to section 22(1) of the Act; or
- provide the HPO with proof that the New Homes were built by an HPO LRB and are enrolled in a policy of home warranty insurance pursuant to section 22 of the Act; or
- provide the HPO with proof that the New Homes are owned under a single legal title, and immediately arrange for a restrictive covenant to be registered on the title to the Property restricting the sale or other disposition of any of the New Homes on the Property for 10 years from the date of first occupancy of one of the New Homes pursuant to section 2(2) of the Regulations.
JSMDL and Simons were directed to comply with Compliance Order 16-0006 by February 29, 2016.