Tejinder Singh Rai and Balbir Singh Rai

Enforcement Action: Monetary Penalty

Issue Date: November 8, 2012

On November 8, 2012, Tejinder Singh Rai (“T. Rai”) and Balbir Singh Rai (“B. Rai”) (together, the “Rais”), were issued a monetary penalty, jointly and severally,  in the daily amount of $120, to a maximum of $2,400, for each day that passed, excluding weekends, until the demands contained in Compliance Order 11-0016 were satisfied. This daily monetary penalty amount accumulated for 19 days until it was suspended at $2,280 on December 9, 2012. This Monetary Penalty was issued for the following reasons:

  • The Rais, contrary to s. 21(2)(a) of the Homeowner Protection Act (the Act)regarding a new home in Surrey, B.C. (the “New Home”), for which an Owner Builder Authorization had been issued, sold the New Home on, or about, May 26, 2011, without providing the prospective purchasers of the New Home, prior to the sale of the New Home, a disclosure notice in a form satisfactory to the Homeowner Protection Office (“HPO”) Registrar stating, among other information, whether or not the New Home was covered by a policy of home warranty insurance;
  • The contravention of s. 21(2)(a) of the Act by the Rais is the subject of Compliance Order 11-0016 (the “CO”) issued by the HPO on June 28, 2011. The date for complying with the CO was July 15, 2011;
  • The CO directed the Rais to obtain a Disclosure Notice from the HPO for the New Home and once obtained, provide the HPO with evidence that the Rais had in fact provided this Disclosure Notice for the New Home to the purchasers of the New Home pursuant to s. 21(2)(a) of the Act, and return a signed copy of the Disclosure Notice for the New Home to the HPO;
  • The Rais failed to comply with the CO by the requested compliance date;
  • The failure of the Rais to comply with the CO made the Rais subject to the monetary penalty pursuant to s. 28.3(1)(b) of the Act;
  • The MPN was issued on November 8, 2012, and the daily monetary penalty became effective on November 13, 2012 – the date the MPN was served;
  • The Rais complied with the CO on December 9, 2012, and the daily monetary penalty amount was suspended on that day. The daily monetary penalty accumulated  for a total of 19 days, excluding weekends, and was suspended at $2,280; and
  • B. Rai contravened s. 21(2)(a) of the Act by virtue of s. 85(1)(b) of the Offence Act, RSBC 1996, c. 338.