Daljit Rai

Enforcement Action: Monetary Penalty

Issue Date: July 22, 2011

On July 22, 2011, pursuant to s. 28.3(1)(a) of the Homeowner Protection Act, (the “Act”) and s.20.1(2)(d) of the Homeowner Protection Act Regulation (the “Regulations”), Daljit Rai (“Rai”) was issued a daily monetary penalty in the amount of $390, to a maximum of $11,700, for each day that passed until all of the demands contained in the Amended Compliance Order 10-0033-1 had been satisfied. This Monetary Penalty was issued for the following reasons:

  • Rai, contrary to sections 20.1 and 22 of the Act, regarding a new home in Surrey, B.C., (the "New Home") for which an Owner Builder Authorization (“OBA”) had been issued:
    • offered for sale the New Home between September 17, 2009, and February 12, 2010, without having occupied the New Home for the required 12-month time period after the New Home was built; and
    • after receiving permission from the Registrar of the Homeowner Protection Office (the “HPO”) to sell the New Home on the condition that Rai obtain home warranty insurance for the New Home prior to selling the New Home, sold the New Home without the New Home being covered with home warranty insurance;
  • The contraventions of the Act by Rai are the subject of Compliance Order 10-0005 (“CO”) issued by the HPO on May 17, 2010, Amended Compliance Order 10-0033 (“ACO”) issued by the HPO on November 23, 2010, and Amended Compliance Order 10-0033-1 (“ACO-1”) issued by the HPO on February 8, 2011. The date for complying with ACO-1 was March 11, 2011;
  • The ACO-1 directed Rai to become an HPO Licensed Residential Builder (“LRB”) pursuant to s. 14(1) of the Act, and enrol the New Home with home warranty insurance pursuant to s. 22(1) of the Act; and
  • Rai failed to comply with ACO-1 by the requested compliance date.