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Consumer Protection Thinking of purchasing a new home? Consumer protection laws for new home construction were brought into force on July 1,1999. As of that date, only residential builders licensed with the Homeowner Protection Office (HPO) are able to obtain building permits to construct homes for sale. Prior to making a purchasing decision, buyers of new homes should make sure that a Licensed Residential Builder built the home. The HPO, a provincial Crown corporation, maintains a public registry of Licensed Residential Builders that can be found at www.hpo.bc.ca or by calling the HPO. Licensed Residential Builders are required to arrange for home warranty insurance on new home construction. The minimum home warranty insurance coverage is set by legislation and includes 2 years on labour and materials,5 years on the building envelope and 10 years on structure. This is the strongest construction defect warranty in Canada. Homebuyers should watch for the 2-5-10 year warranty insurance logo when looking for a new home. This logo indicates a Licensed Residential Builder built the home and arranged for the 2-5-10 year home warranty insurance. This logo is trademarked by the HPO and is only available to Licensed Residential Builders. Thinking of building a new home? Individuals interested in building their own home, for their own personal use, may be eligible for an owner-builder exemption from licensing and warranty insurance. The owner-builder must either build or directly manage the construction of their new home. If this is not the case, then they must hire a Licensed Residential Builder, who will arrange for mandatory home warranty insurance. When looking for a new home, purchasers should beware that an owner-built home may not be covered by home warranty insurance. Instead, an owner-builder who sells their home within 10 years of occupancy is subject to the Statutory Protection provisions of the Homeowner Protection Act and is personally liable to subsequent purchasers for defects in the home. Questions? Call the HPO information line at 1-800-407-7757. |
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CHBA Victoria #1-3690 Carey Road, Victoria, BC,
V8Z 4C2 |
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