Enforcement Action: Compliance OrderIssue Date: October 30, 2018
By Design Construction Inc. (“BDC”) and Bhajan Purba (“Purba”) constructed a new home in Burnaby, BC (the “New Home”), between the period of, or about, August 25, 2016, and June 24, 2017. BDC and Purba are a BC Housing (“BCH”) Licensed Residential Builder (“LRB”)(40702) and obtained a commitment from an approved home warranty insurer on May 24, 2016, to provide home warranty insurance (“HWI”) on the New Home as required by the Homeowner Protection Act (the “Act”) and the Homeowner Protection Act Regulation (the “Regulations”). Construction commenced on the New Home and then the New Home was de-enrolled from HWI coverage by the home warranty insurer on June 21, 2017. This was contrary to section 22(1) of the Act since BDC and Purba were found to have managed all or substantially all of the construction of the New Home. On October 30, 2018, BCH issued Compliance Order 18-0070 to BDC and Purba directing that BDC and Purba:
- register the New Home for coverage by HWI provided by a warranty provider pursuant to section 22(1) of the ; or
- provide BCH Compliance Department with proof that the New Home is enrolled in a policy of HWI pursuant to section 22 of the Act.
BDC and Purba were directed to comply with Compliance Order 18-0070 by November 30, 2018.