Kuldip Singh Aulakh (“K. Aulakh”) and Inderjit Kaur Aulakh (“I. Aulakh”) (together, “the Aulakhs”) , contrary to section 22(1.1) of the Homeowner Protection Act (the “Act”), offered for sale two new homes in Prince George, B.C. (the “New Homes”), between the dates of, or about, June 9, 2015, and June 11, 2015, without any of the New Homes being covered with a policy of home warranty insurance pursuant to section 22(1) of the Act. On June 11, 2015, the Homeowner Protection Office (“HPO”) issued Compliance Order 15-0021 directing the Aulakhs that the Aulakhs:
- immediately cease the offering for sale, marketing, completion of any Purchase and Sale Agreement that may already be in place, or may come into place, and/or the actual sale of the New Homes;
- provide the HPO evidence of the sale offering cancellation for each of the New Homes, or in the case of a Purchase and Sale Agreement for the New Homes already being in place, proof that the Purchase and Sale Agreement will not become a legally binding contract until such time as the Act and the Homeowner Protection Act Regulation are complied with and
- Prior to renewing any marketing efforts and/or offering any of the New Homes for sale, or in the case of a Purchase and Sale Agreement already being in place for any of the properties, prior to selling any of the New Homes, the Aulakhs must:
- ensure that each of the New Homes is registered for coverage by home warranty insurance provided by a warranty provider pursuant to section 22(1) of the Act; or
- be granted a permission by the registrar of the HPO, pursuant to section 22(1.2) of the Act, authoring the Aulakhs to sell, or offer to sell, each of the New Homes despite the requirement of section 22(1.1) of the Act.
The Aulakhs were directed to comply with Compliance Order 15-0021 by June 26, 2015.