Sterling Hunt (GP) Ltd. (“SHL”), George Mason (“G. Mason”), and Robert Arthur Forrest (“R. Forrest”), contrary to section 22(1.1)(a) of the Homeowner Protection Act (the “Act”), offered and marketed for sale 3 multi-unit buildings in Merritt, BC, containing approximately 14 residential units (collectively, the “New Homes”), without any of the New Homes being registered for coverage by home warranty insurance (“HWI”) provided by a warranty provider in, or about, February 2018. On June 20, 2018, BC Housing (“BCH”) issued Compliance Order 18-0046 to SHL, G. Mason and R. Forrest directing that SHL, G. Mason and R. Forrest:
- immediately cease the offering for sale, marketing, completion of any Purchase/Sale Agreement that may already be in place, or may come into place, and/or actual sale of the New Homes and the property (the “Property”);
- prior to resuming construction of the New Homes, SHL, G. Mason and R. Forrest must:
- apply for and become a BCH Licensed Residential Builder (“LRB”) pursuant to section 14(1) of the Act, and register each of the New Homes 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 Homes are being built by a LRB and are enrolled in a policy of HWI pursuant to section 22 of the Act; and
- until such time as each of the New Homes is in compliance with the Act and the Homeowner Protection Act Regulation (the “Regulations”), any offer to sell any of the New Homes, or actual transfer of title of the Property by SHL, G. Mason, R. Forrest, or anyone else, would not be legally permissible under the Act and Regulations unless permission to sell the New Homes and the Property has been granted by the Registrar under section 22(1.2) of the Act.
SHL, G. Mason and R. Forrest were ordered to comply with Compliance Order 18-0046 by July 27, 2018.