Enforcement Action: Compliance OrderIssue Date: June 11, 2018
Jasbir Singh Mehta (“J. Mehta”) and Rupinder Mehta (“R. Mehta”) (together, “the Mehtas”), contrary to section 22(1) of the Homeowner Protection Act (the “Act”), commenced or caused to have commenced construction on a new home in Surrey, B.C. (the “New Home”), on, or about, January 18, 2018, without the New Home being registered for coverage by home warranty insurance (“HWI”) provided by a warranty provider. On June 11, 2018, BC Housing (“BCH”) issued Compliance Order 18-0042 to the Mehtas directing that the Mehtas:
- immediately cease construction activities on the New Home at the property (the “Property”) and ensure that the New Home is enrolled with a policy of HWI pursuant to section 22(1) of the Act;
- 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, prior to selling the New Home and the Property, the Mehtas must:
- 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 the Mehtas to sell, or offer to sell, the New Home and the Property despite the requirements of section 22 (1.1) of the Act; and
- until such time as the New Home is in compliance with the Act and the Homeowner Protection Act Regulation (the “Regulations”), construction is not permitted to continue on the New Home, and any offer to sell the New Home, or transfer of title of the Property, by either of the Mehtas, or anyone else, would not be legally permissible under the Act and Regulations unless permission to sell the New Home and the Property has been granted by the Registrar under section 22(1.2) of the Act.
The Mehtas were ordered to comply with Compliance Order 18-0042 by June 22, 2018. Complied.