Enforcement Action: Compliance OrderIssue Date: June 13, 2018
Sanraj Holdings & Development Ltd. (“SHD”) and Bijay Ram (“B. Ram”) commenced, or caused to have commenced, construction on two new homes in Chilliwack, BC (the “New Homes”), on, or about, November 30, 2011, and have remained as the registered owner of the New Home properties (the “Properties”) since, or about, May 8, 2018. Although SHD and B. Ram had been a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) (35108) between October 27, 2011 and October 31, 2013, and obtained a commitment from an approved home warranty insurer on November 30, 2011, to provide home warranty insurance (“HWI”) 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 HWI coverage by the home warranty insurer on April 22, 2013, and April 7, 2015, contrary to section 22(1) of the Act. On June 13, 2018, BCH issued Compliance Order 18-0043 to SHD and B. Ram directing that SHD and B. Ram:
- prior to resuming construction on each of the New Homes:
- apply for and become a BCH LRB pursuant to section 14(1) of the Act, and register the New Homes for coverage by HWI provided by a warranty provider pursuant to section 22(1) of the Act; or
- provide BCH Compliance Department with proof that the New Homes are being built by a LRB and are enrolled in a policy of HWI pursuant to section 22 of the Act; and
- until such time as the New Homes are in compliance with the Act and Regulations, any sale of the New Homes, or actual transfer of title of the Properties by SHD, B. Ram, or anyone else, would not be legally permissible under the Act and Regulations unless permission to sell the New Homes has been granted by the Registrar under section 22(1.2) of the Act.
SHD and B. Ram were directed to comply with Compliance Order 18-0043 by July 27, 2018. Complied.