Enforcement Action: Compliance OrderIssue Date: September 15, 2017
Richard Donald Mallett (“R. Mallett”) and Jennifer Marie Mallett (“J. Mallett”), contrary to section 22(1) of the Homeowner Protection Act (the “Act”), commenced or caused to have commenced construction on a new home in Chilliwack, B.C. (the “New Home”), sometime in 2014 without the New Home being registered for coverage by home warranty insurance (“HWI”) provided by a warranty provider. On September 15, 2017, BC Housing (“BCH”) issued Compliance Order 17-0031 to R. Mallett and J. Mallett (together, “the Malletts”) directing that the Malletts:
- prior to offering the New Home for sale, or in the case of a Purchase and Sale Agreement already being in place for the New Home property (the “Property”), prior to selling the New Home:
- ensure the New Home is enrolled with a policy of HWI pursuant to section 22(1) of the Act; or
- be granted a permission by the Registrar, pursuant to section 22(1.2) of the Act, authorizing R. Mallett or J. Mallett to sell, or offer to sell, the New Home despite the requirements of section 22 (1.1) of the Act; or
- provide BCH with evidence that the New Home no longer meets the definition of a “new home” under the Act; and
- Until such time as the New Home is in compliance with the Act and the Homeowner Protection Act Regulation (the “Regulations”), any offer to sell the New Home, or transfer of title of the Property, by the Mallets, 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 Malletts were ordered to comply with Compliance Order 17-0031 by October 6, 2017.