Enforcement Action: Compliance OrderIssue Date: July 3, 2015
0839764 B.C. Ltd. (“0839764”) and Sukhpal Sran (“Sran”) constructed two new homes in Surrey, B.C. (the “New Homes”), between the period of, or about, May 26, 2014, and March 17, 2015. Although 0839764 held a valid Homeowner Protection Office (“HPO”) Residential Builder Licence (#28995), and obtained a commitment from an approved home warranty insurer on March 19, 2014, 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 March 17, 2015, contrary to section 22(1) of the Act. Furthermore, contrary to section 22(1.1)(a) of the Act, 0839764 and Sran offered for sale one of the New Homes in May 2015 without that new home (the “New Home”) being covered by a policy of home warranty insurance. On July 3, 2015, the HPO issued Compliance Order 15-0023 to 0839764 and Sran directing that 0839764 and Sran:
- 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 Home;
- provide the HPO evidence of the sale offering cancellation for the New Home, or in the case of a Purchase and Sale Agreement for the New Home 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 Regulations are complied with;
- 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 proof that each of the New Homes is enrolled in a policy of home warranty insurance pursuant to section 22 of the Act; 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 the New Homes, prior to selling any of the New Homes, Sran must:
- ensure each of the New Homes is enrolled with a policy of home warranty insurance pursuant to section 22 of the Act; or
- be granted a permission by the registrar of the HPO, pursuant to section 22(1.2) of the Act, authorizing Sran, or anyone else, to sell, or offer to sell, any of the New Homes despite the requirements of section 22 (1.1) of the Act.
0839764 and Sran were directed to comply with Compliance Order 15-0023 by July 17, 2015.