Enforcement Action: Compliance OrderIssue Date: June 15, 2017
Willi Gottlieb Schmid (“W. Schmid”) and Barbara Schmid (“B. Schmid”), contrary to sections 14(1) and 22(1) of the Homeowner Protection Act (the “Act”), commenced or caused to have commenced construction on a new home in Hazelton, B.C. (the “New Home”), on, or sometime prior to, February 18, 2016, without being a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) and without the New Home being registered for coverage by home warranty insurance provided by a warranty provider. On June 15, 2017, BCH issued Compliance Order 17-0023 to W. Schmid and B. Schmid (together, “the Schmids”) directing that the Schmids:
- immediately cease all construction activities on the New Home;
- immediately either:
- apply for and become a BCH LRB pursuant to section 14(1) of the Act, and register the New Home for coverage by home warranty insurance provided by a warranty provider pursuant to section 22(1) of the Act;
- provide BCH Compliance Department with proof that the New Home is being built by a LRB and is enrolled in a policy of home warranty insurance pursuant to section 22 of the Act;
- if the Schmids meet the eligibility requirements, either W. Schmid or B. Schmid may apply for, and be issued, an Owner Builder Authorization for the New Home pursuant to section 20(1) of the Act and section 4.1(2) of the Homeowner Protection Act Regulation (the “Regulations”); or
- provide BCH Compliance Department with evidence that the New Home is not a residential dwelling and does not meet the definition of a ‘new home’ as defined under the Act; and
- until such time as the New Home is in compliance with the Act and Regulations, any offer to sell the New Home, or actual transfer of title of the New Home by the Schmids, or anyone else, would not be legally permissible under the Act and Regulations unless permission to sell the New Home has been granted by the Registrar under section 22(1.2) of the Act.
The Schmids were directed to comply with Compliance Order 17-0023 by July 14, 2017.