Enforcement Action: Compliance OrderIssue Date: June 9, 2017
Okhyun Chung (“Chung”) commenced or caused to have commenced construction on a new home in West Vancouver, B.C. (the “New Home”), on, or about, November 30, 2016. Although the New Home was registered for coverage by home warranty insurance provided by a warranty provider on October 31, 2016, as required by the Homeowner Protection Act (the “Act”) and the Homeowner Protection Act Regulation (the “Regulations”), the New Home was de-enrolled from home warranty insurance coverage by the home warranty insurer on June 9, 2017, contrary to section 22(1) of the Act. On June 9, 2017, BCH issued Compliance Order 17-0014 to Chung directing that Chung:
- immediately cease all construction activities on the New Home;
- immediately either:
- apply for and become a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) pursuant to section 14(1) of the Act, and register the New Home for coverage by home warranty insurance (“HWI”) 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 HWI pursuant to section 22 of the Act; or
- if Chung meets the eligibility requirements, Chung 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 Regulations; 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 Property by Chung, 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.
Chung was directed to comply with Compliance Order 17-0014 by June 30, 2017.