Copyright (

c) Queen's Printer,

Victoria, British Columbia, Canada

License

Disclaimer

1998 Legislative Session: 3rd Session, 36th Parliament

THIRD READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

Certified correct as passed Third Reading on the 28th day of July, 1998

Ian D. Izard, Law Clerk

HONOURABLE JENNY KWAN

MINISTER OF MUNICIPAL AFFAIRS

BILL 46 – 1998

HOMEOWNER PROTECTION ACT

Contents

Section

Part 1 – Introductory Provisions

Definitions

Purposes of the Act

Part 2 – Homeowner Protection Office

Homeowner Protection Office

Board

Powers and duties of the chief executive officer

Financial administration of the office

Part 3 – Registrar

Registrar

Duties of the registrar

Enforcement

Collection of fees

Part 4 – Research and Education Division

Establishment of research and education division

Purposes of the division

Advisory council

Part 5 – Licensing of Residential Builders

Licensing of residential builders

Refusal, suspension or cancellation of a residential builder's licence

Procedure for refusing, suspending or cancelling the licence of a residential builder

Public register

Licensing of other persons

Part 6 – Trades and Occupations

Compulsory certification of trades and occupations

Part 7 – Owner Builders

Owner builder not required to be licensed or obtain home warranty insurance

Disclosure and security

Part 8 – Consumer Protection for New Home Buyers

Mandatory home warranty

Statutory protection

Part 9 – Reconstruction Program

Reconstruction Program established

Payments to the program

Annual assessment

Payments from the program

Agreements

Part 10 – Alternate Dispute Resolution

Dispute resolution processes

Part 11 – General Provisions

Building permits

Injunction

Regulations

Minister's regulations

Offence and penalty

Compensation to consumer

Transitional

37-42

Consequential Amendments

Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the

Province of British Columbia, enacts as follows:

Part 1 – Introductory Provisions

Definitions

1 In this Act:

"advisory council" means the Provincial Advisory Council on Homeowner

Protection established under

section 13;

"chief executive officer" means the person appointed under

section 3

(3) as the chief executive officer of the Homeowner Protection Office;

"director of research and education" means the person designated under

section 11 (

b) as the director of research and education for the office;

"home warranty insurance" has the same meaning as in

section 189.1 (1)

of the Insurance Act;

"new home" means a building, or portion of a building, that is newly

constructed and intended for residential occupancy, and includes

(

a) a self-contained dwelling unit that is

(

i) detached, or

(ii) attached to one or more other self-contained dwelling units,

(

b) a building having 2 or more self-contained dwelling units under one ownership,

(

c) common property, common facilities and other assets of a strata corporation, and

(

d) any building or portion of a building of a class prescribed by the regulations as a

new home to which this Act applies,

but does not include a manufactured home unless otherwise prescribed;

"office" means the Homeowner Protection Office established under

section 3 (1);

"owner" means a person who

(

a) purchases a new home, or

(

b) contracts with a residential builder to construct a new home,

and includes

(

c) a person who purchases a life interest in a new home,

(

d) a strata corporation in respect of the common property, common facilities and other

assets,

(

e) a cooperative, corporation or society having an ownership interest in a new home,

and

(

f) a subsequent purchaser of a new home;

"owner builder" means an individual who

(

a) for personal use builds, or undertakes the renovation of, a detached self-

contained dwelling unit or any building, or portion of a building, of a class prescribed

by the regulations, and

(

b) has not, within the previous 18 months, built or undertaken the renovation of a

dwelling unit or building referred to in paragraph (a);

"program" means the Reconstruction Program established under

section

24;

"registrar" means the person designated under

section 7 (1) as the

registrar;

"renovation" means a change, addition or alteration to a home, or a

repair to a home, as prescribed by the regulations;

"residential builder" means a person who engages in, arranges for or

manages all or substantially all of the construction of a new home, and includes a

developer and a general contractor;

"vendor" means a person who sells their ownership interest in a new

home;

"warranty provider" means a person who has a business authorization

under the Financial Institutions Act to carry on insurance business.

Purposes of the Act

(1) The purposes of this Act are

(

a) to strengthen consumer protection for buyers of new homes,

(

b) to improve the quality of residential construction, and

(

c) to support research and education respecting residential construction in British

Columbia.

(2) A further purpose of this Act is to establish a Reconstruction Program to provide

financial assistance to eligible homeowners for home reconstruction.

Part 2 – Homeowner Protection Office

Homeowner Protection Office

(1) The Homeowner Protection Office is established consisting of the board

appointed under

section 4 (1).

(2) The purposes of the office are

(

a) to license residential builders and other persons required to be licensed under

this Act,

(

b) to carry out research and education respecting residential construction in British

Columbia, and

(

c) to administer the program.

(3) The Lieutenant Governor in Council must appoint a person as chief executive officer

appointment of the chief executive officer.

(4) Subject to the approval of the Lieutenant Governor in Council, the office, for the

purpose of carrying out any power, right, function or duty conferred or imposed on it

under this or any other Act, may borrow the sums of money it considers necessary or

advisable.

(5) The office is a corporation and has the power and capacity of a natural person of

full capacity.

(6) The office is, for all purposes, an agent of the government and its powers may be

exercised only as an agent of the government.

(7) The Public Service Act and the Public Service Labour Relations Act do

not apply to the office or to a member, officer or employee of the office.

(8) The Company Act does not apply to the office but the Lieutenant Governor in

Council may order that one or more provisions of that Act apply.

Board

(1) The Lieutenant Governor in Council must

(

a) appoint as members of the board at least 3 persons who hold office during pleasure,

and

(

b) designate one of the members as chair of the board.

(2) The board must manage the affairs of the office or supervise the management of

those affairs.

(3) The office may pay to a member

(

a) an allowance for reasonable travelling and incidental expenses necessarily incurred

in carrying out the business of the office, and

(

b) if the member is not a member of the Legislative Assembly or a public servant,

remuneration at rates set by the Lieutenant Governor in Council.

Powers and duties of the chief executive officer

(1) The chief executive officer must do all of the following:

(

a) designate the registrar and the director of research and education;

(

b) appoint officers and hire employees as the chief executive officer considers

remuneration and duties;

(

c) advise the minister respecting home warranty insurance or any other matter under

this Act or the regulations;

(

d) perform other prescribed powers and duties.

(2) The chief executive officer may act as the registrar or the director of research

and education, and may perform the duties of either of them.

Financial administration of the office

(1) The office must establish and maintain an accounting system satisfactory

to the Minister of Finance and Corporate Relations and must, whenever required by that

minister, render detailed accounts of its revenues and expenditures for the period or to

the day that minister designates.

(2) All books or records of account, documents and other financial records of the

office must at all times be open for inspection by the minister or a person designated by

the minister.

(3) The Minister of Finance and Corporate Relations may direct the Comptroller General

to examine and report to the Minister of Finance and Corporate Relations on any or all of

the financial and accounting operations of the office.

(4) The Auditor General must

(

a) audit the books and financial affairs of the office at least once in each year, and

(

b) report to the office.

(5) The office must, within 90 days of the fiscal year end, submit annually to the

minister, in a form approved by the minister,

(

a) a report of the office on its operations for the preceding fiscal year,

(

b) a financial statement showing the revenues, expenditures, assets and liabilities of

the office as of the end of the preceding fiscal year, and

(

c) the annual report of the auditor of the office.

(6) The financial statement referred to in subsection (5) (

b) must be prepared in

accordance with generally accepted accounting principles.

(7) The financial statement and reports referred to in subsection (5) must be laid

before the Legislative Assembly by the minister as soon as practicable.

(8) The Minister of Finance and Corporate Relations is the fiscal agent of the office.

(9) The Lieutenant Governor in Council may designate administrative services that the

office must obtain from the government or from any government corporation, agency, branch

or ministry or other government organization or entity that is specified in the order

making the designation.

Part 3 – Registrar

Registrar

(1) The chief executive officer must designate a person as the registrar of

residential builders and other persons required to be licensed under this Act.

(2) The registrar may designate a person who may, in the absence of the registrar,

perform the duties of the registrar.

Duties of the registrar

(1) The registrar has the following duties:

(

a) to receive and review applications for licensing from residential builders and

other persons required to be licensed under this Act;

(

b) to issue licences to, and renew the licences of, residential builders and other

persons required to be licensed under this Act who meet the requirements of this Act and

the regulations;

(

c) subject to

section 15, to suspend or cancel licences;

(

d) to maintain a register of licensed residential builders and other persons licensed

under this Act;

(

e) to make entries in the registers in accordance with this Act and the regulations;

(

f) to keep records, including records of decisions made by the registrar;

(

g) subject to the regulations, to provide information to the public about persons

licensed under this Act;

(

h) to perform other prescribed duties.

(2) Subject to the regulations, the registrar may request reports from licensed

residential builders and other persons licensed under this Act.

Enforcement

(1) For the purposes of this Act and the regulations, the registrar or a

person authorized by the registrar, may, during regular business hours, do one or more of

the following:

(

a) subject to subsection (2), enter and examine any premises;

(

b) question any person about

(

i) the qualifications of workers,

(ii) the work performed by workers, or

(iii) any matter that relates to licensing under this Act;

(

c) inspect the records of a person who is required to be licensed under this Act;

(

d) require a person to produce for inspection a record referred to in paragraph (c);

(

e) on giving a receipt for a record referred to in paragraph (c), remove the record to

make copies or extracts;

(

f) exercise and perform other prescribed powers and duties.

(2) The registrar or person authorized by the registrar may only enter a place occupied

as a private residence with the consent of an occupant.

(3) A person must not obstruct the registrar or other authorized person when exercising

his or her powers under this section, or withhold from him or her, or conceal or destroy,

a record relevant to an investigation.

(4) On the request of the registrar and for the purposes of this Act and the

regulations,

(

a) a warranty provider must provide reports respecting

(

i) the risk profile of persons required to be licensed under this Act, and

(ii) other prescribed information, and

(

b) a municipality or regional district must provide reports respecting building

regulation compliance by persons required to be licensed under this Act.

(5) The registrar may specify the form and content of a report required by subsection

(4).

Collection of fees

(1) The registrar must collect from residential builders and other persons

required to be licensed under this Act the prescribed fees for licensing and for the

renewal of licences.

(2) Money collected by the registrar under subsection (1) must be paid to the credit of

the office and applied to defray the expenses incurred in carrying out the functions of

the office under this Act.

(3) Despite the Financial Administration Act, money collected by the registrar

under subsection (1) of this

section is not paid into the consolidated revenue fund.

Part 4 – Research and Education Divisio

Establishment of research and education division

11 The chief executive officer must

(

a) establish in the office a research and education division, and

(

b) designate a person as director of research and education to manage the division.

Purposes of the division

12 The purposes of the division established under

section 11 are as follows:

(

a) to establish and maintain expertise in building science, especially as it applies

to British Columbia and the British Columbia Building Code;

(

b) to advise on necessary and appropriate amendments to the British Columbia Building

Code;

(

c) to advise the City of Vancouver on necessary and appropriate amendments to the City

of Vancouver building by-laws;

(

d) to provide advice and assistance to those charged with the responsibility of

preparing periodic revisions of the National Building Code of Canada;

(

e) to conduct research into cost effective building techniques, processes and

materials appropriate for use in British Columbia;

(

f) to cooperate with other organizations to establish what constitutes the best

practice for building and retrofitting housing in British Columbia;

(

g) to support consumer education;

(

h) to perform other functions consistent with this Part.

Advisory council

(1) An advisory council is established to be known as the Provincial Advisory

Council on Homeowner Protection consisting of members appointed by the chief executive

officer.

(2) The advisory council established under subsection (1) is to be composed of

(

a) participants from the residential construction industry, including architects and

engineers,

(

b) owners, and

(

c) local government.

(3) The chief executive officer may designate one of the members as chair of the

advisory council and another member as vice chair.

(4) The chief executive officer may, at any time, rescind an appointment made under

subsection (1) or a designation made under subsection (3).

Part 5 – Licensing of Residential Builders

Licensing of residential builders

(1) A person must not carry on the business of a residential builder unless

licensed under this Part.

(2) On application to the registrar, a person may be issued with a licence as a

residential builder if

(

a) the registrar is satisfied that the person meets the qualifications and conditions

for licensing required by the regulations, and

(

b) the person pays any prescribed licence fee.

(3) For the purposes of subsection (2), a corporation is not qualified to hold a

licence unless

(

a) at least one of the directors of the corporation is licensed under this Part, and

(

b) none of the directors of the corporation has, in the 5 year period immediately

preceding the corporation's application for a licence,

(

i) had his or her licence cancelled under this Part, or

(ii) been a director of a corporation that has had its licence cancelled under this

Part.

(4) A residential builder who is authorized by a licence issued under this Part may use

the designation "Licensed Residential Builder".

(5) Unless a person is a licensed residential builder referred to in subsection (4),

the person must not

(

a) use or display the designation "Licensed Residential Builder", or

(

b) imply, suggest or hold out in any manner that the person is a residential builder

who is licensed under this Part.

(6) A licence issued under this Part

(

a) is valid for one year from the date of issue, or for a shorter period as determined

by the registrar,

(

b) may be renewed, and

(

c) is not transferable.

(7) Subject to the regulations, the registrar may impose conditions on licences issued

or renewed under this Part.

Refusal, suspension or cancellation

of a residential builder's licence

15 The registrar may refuse to renew, or may suspend, cancel or impose

restrictions on, the licence of a residential builder

(

a) for any reason that would disqualify a residential builder under

section 14 if the

residential builder were an applicant,

(

b) if the residential builder has made a false statement on a material matter in the

application or refuses to provide information on a material matter when requested to do so

by the registrar, or

(

c) if the residential builder is in breach of a condition of, or restriction on, the

licence or is convicted of an offence under this Act or the regulations.

Procedure for refusing, suspending or

cancelling the licence of a residential builder

(1) If the registrar refuses to issue a licence to, or renew the licence of,

a residential builder, or suspends, cancels or imposes restrictions on the licence of a

residential builder, the registrar must

(

a) serve notice of the decision, together with written reasons, on the residential

builder, and

(

b) state in the notice that the residential builder has a right to appeal the decision

of the registrar to the Commercial Appeals Commission under the Commercial Appeals

Commission Act.

(2) The appeal must be made in the manner and within the time allowed in the Commercial

Appeals Commission Act.

Public register

(1) The registrar must compile a list of all residential builders licensed

under this Part.

(2) The list required by subsection (1) is a public record and must be made available

for inspection by any person during the regular business hours of the office.

Licensing of other persons

18 If a residential subcontractor or residential renovator is required by the

regulations to be licensed, a reference to "residential builder" in this

Part is

deemed to be also a reference to "residential subcontractor" or

"residential renovator", as the case may be.

Part 6 – Trades and Occupations

Compulsory certification of trades and occupations

(1) In this section, "compulsory certification occupation"

and "compulsory certification trade" have the same meaning as in

section

1 of the Industry Training and Apprenticeship Act.

(2) The chief executive officer may provide advice to the Lieutenant Governor in

Council for the purposes of

section 13 of the Industry Training and Apprenticeship Act

with respect to specifying

(

a) a designated occupation as a compulsory certification occupation, and

(

b) a designated trade as a compulsory certification trade.

(3) A person must not work in a compulsory certification occupation or a compulsory

certification trade unless the person is in compliance with

section 13 (4) of the Industry

Training and Apprenticeship Act.

(4) A person licensed under this Act must not employ a person to work in a compulsory

certification occupation or a compulsory certification trade if the employer knows, or

would reasonably be expected to know, that the person is not permitted by subsection

(3) to work in that trade or occupation.

Part 7 – Owner Builders

Owner builder not required to be licensed

or obtain home warranty insurance

(1) An owner builder is not required

(

a) to be licensed under this Act, or

(

b) to obtain home warranty insurance.

(2) Despite subsection (1) (b), an owner builder may choose to obtain home warranty

insurance.

Disclosure and security

21 An owner builder must, before selling a home that is not covered by home

warranty insurance during the period in which home warranty insurance would have been in

effect under this Act or the regulations, provide to a person offering to purchase the

(

a) a disclosure notice in the prescribed form stating that the home is not covered by

home warranty insurance, and

(

b) if required by the regulations, another form of security instead of home warranty

insurance.

Part 8 – Consumer Protection for New Home Buyers

Mandatory home warranty

(1) A person must not build, offer for sale or sell a new home unless the new

home is covered by home warranty insurance provided by a warranty provider.

(2) Home warranty insurance for a new home must provide coverage for

(

a) defects in materials and labour for a period of at least 2 years after the date on

which the warranty begins,

(

b) defects in the building envelope, including defects resulting in water penetration,

for a period of at least 5 years after the date on which the warranty begins, and

(

c) structural defects for a period of at least 10 years after the date on which the

warranty begins.

(3) If required by the regulations, a person must not undertake a renovation or offer

for sale or sell a renovated home unless the renovation is covered by home warranty

insurance provided by a warranty provider.

(4) Subsections (1) and (3) do not apply to an owner builder.

Statutory protection

(1) A residential builder and a vendor of a new home are both deemed to have

agreed with the owner, to the extent of labour, materials and design supplied, used or

arranged by the residential builder or vendor, that the new home

(

a) is reasonably fit for habitation,

(

b) has been constructed from materials that are of good quality and reasonably fit for

the purpose, and

(

c) has been designed and constructed with ordinary competence, skill and care.

(2) Any term of an agreement that purports to waive, exclude, limit or qualify the

protection under subsection (1) is of no effect.

(3) The protection under subsection (1) is for the benefit of whoever is the owner of

the new home from time to time until the end of the period within which an action may be

brought under subsection (5), and that owner is deemed

(

a) to have given good consideration for the benefit of the protection, and

(

b) to be the only person entitled to recover damages for a breach of the protection.

(4) Despite subsection (3), if the ownership of the new home changes during the course

of an action for breach of the protection under subsection (1), the new owner is entitled

to be substituted as plaintiff and to enforce all rights that the former owner could have

enforced.

(5) An action in respect of the protection under subsection (1) must be commenced

within 10 years after the date of first occupancy of the new home or, in respect of common

property, common facilities and other assets of a strata corporation, the date the strata

plan is deposited in a land title office in accordance with the Condominium Act.

(6) Nothing in this

section

(

a) excludes, qualifies or limits any other term, express or implied,

(

b) relieves any person of liability to which they would otherwise be subject, or

(

c) subjects a municipality or regional district to any greater liability than if this

section were not in force.

(7) This

section does not apply to a new home covered by home warranty insurance.

Part 9 – Reconstruction Program

Reconstruction Program established

24 A program is established to be known as the Reconstruction Program for the

purpose of providing financial assistance to eligible homeowners for home reconstruction.

Payments to the program

(1) The office must pay the following money to the credit of the program:

(

a) any donations, grants or loans to the program received from

(ii) any public or private corporation, or

(iii) any other person;

(

b) assessments levied under

section 26;

(

c) investment earnings on the money referred to in paragraphs (

a) and (b).

(2) Money paid to the credit of the program

(

a) is the property of the office,

(

b) must be accounted for separately from other money of the office, and

(

c) is not subject to any process of seizure or attachment by any creditor of the

office.

(3) The office must place with the Minister of Finance and Corporate Relations, for

investment, money paid to the credit of the program that is not immediately required for

carrying out the purposes of

section 27.

(4) Money placed with the Minister of Finance and Corporate Relations under this

section is to be treated for all purposes as money placed with that minister under

section

40 (5) of the Financial Administration Act.

Annual assessment

(1) For the purposes of the program, the Lieutenant Governor in Council may

make regulations prescribing an annual assessment that must be paid by prescribed

categories of residential builders as part of a licence fee payable under

section 14 (2).

(2) For the purpose of subsection (1), the Lieutenant Governor in Council may prescribe

formulas for calculating the assessment and the time for payment of that assessment.

(3) If a residential builder defaults in the payment of an assessment that is due and

payable under this Act, the chief executive officer may

(

a) issue a certificate stating the amount due, the amount remaining unpaid, including

prescribed interest, and the name of the person by whom it is payable, and

(

b) file the certificate with a district registrar of the Supreme Court,

and when filed the certificate has the same force and effect, and all proceedings may

be taken on it, as if it were a judgment of the court for the recovery of a debt for the

amount stated in the certificate against the person named in it.

(4) In addition to any other remedy available to the office, failure to pay the

assessment in the amounts and at the times specified in the regulations may be cause for

the registrar to refuse to issue or renew, or to suspend, cancel or impose restrictions

on, the licence of a residential builder.

Payments from the program

(1) Subject to the regulations, the chief executive officer may authorize

payments out of the program to provide financial assistance to eligible homeowners.

(2) In addition to the payments authorized by subsection (1), the chief executive

officer may authorize payments out of the program as follows:

(

a) for the repayment of any advance made to the program;

(

b) for the repayment of any loans made to the program;

(

c) for costs of administering the program;

(

d) for any matter relating to the protection and maintenance of the program;

(

e) as required by an agreement entered into under

section 28.

Agreements

28 The chief executive officer, on behalf of the office, may enter into

agreements with prescribed persons for any purposes consistent with this Part.

Part 10 – Alternate Dispute Resolution

Dispute resolution processes

(1) For the purpose of resolving residential construction disputes before or

after an action is commenced arising out of or in connection with the construction of

homes, including, without limitation, disputes about home warranty insurance, the

Lieutenant Governor in Council may make regulations respecting the mediation or

arbitration of residential construction disputes.

(2) For the purposes of the mediation of residential construction disputes referred to

in subsection (1), the Lieutenant Governor in Council may make regulations including,

without limitation, regulations

(

a) providing to a party to a residential construction dispute the ability to require

the parties to engage in mediation and setting out when and how that ability may be

exercised and prescribing any other results that flow from the exercise of that ability,

and

(

b) respecting

(

i) the forms or procedures that must or may be used or followed before, during and

after the mediation process,

(ii) requiring and maintaining confidentiality of information disclosed for the

purposes of mediation,

(iii) the circumstances and manner in which a party to a residential construction

dispute may opt out of or be exempted from mediation,

(iv) the costs and other sanctions that may be imposed in relation to mediation,

including, without limitation, in relation to any failure to participate in mediation when

and as required or otherwise to comply with the regulations,

(

v) the mediators' fees and disbursements, and

(vi) the qualifications required for, and the selection and identification of,

individuals who may act as mediators in the mediation process contemplated by the

regulations.

(3) For the purposes of the arbitration of residential construction disputes referred

to in subsection (1), the Lieutenant Governor in Council may make regulations including,

without limitation, regulations

(

a) providing when and how an arbitration will occur, and who will participate in the

arbitration,

(

b) respecting the forms, procedures and rules that must or may be used or followed for

an arbitration, and

(

c) respecting the costs, fees and disbursements for an arbitration.

(4) If and to the extent that there is any conflict between regulations made under

subsections (1) to (3) and any other enactment, including, without limitation, the rules

of any court, the regulations made under subsections (1) to (3) prevail.

(5) Regulations made under subsection (2) may provide for a mediation process to be

applicable to residential construction actions brought out of one or more court registries

and may be different for residential construction actions brought out of different court

registries.

(6) Section 9 of the Insurance Act does not apply to home warranty insurance

disputes.

Part 11 – General Provisions

Building permits

(1) A municipality or regional district must not issue a building permit for

a proposed new home unless the applicant provides evidence, in the prescribed form,

(

a) that the proposed new home

(

i) is covered by home warranty insurance, or

(ii) will be built by an owner builder or is otherwise exempted by regulation from the

requirement to be covered by home warranty insurance, and

(

b) that the proposed new home will be built

(

i) by a licensed residential builder, or

(ii) by an owner builder or a person who is otherwise exempted by regulation from the

requirement to be licensed as a residential builder.

(2) If a municipality or regional district issues a building permit for a proposed new

home, relying in good faith on the evidence provided under subsection (1), the

municipality or regional district is not liable, either directly or vicariously, for any

damages or other loss, including economic loss, sustained by any person because

(

a) the new home is not covered by home warranty insurance, or

(

b) the new home was not built by a licensed residential builder.

(3) On request of the registrar, a municipality or regional district must forward to

the registrar information provided by applicants for building permits under subsection

(1).

(4) If a residential renovator is required by the regulations to be licensed and

renovations are required by the regulations to be covered by home warranty insurance, a

reference in this

section to "new home" or "residential builder" is

deemed to be also a reference to "renovation" or "residential

renovator", as the case may be.

Injunction

(1) On application of the chief executive officer or the registrar, and on

being satisfied that there is reason to believe that this Act or the regulations are or

will be contravened, the Supreme Court may grant an injunction restraining a person from

the contravention or requiring a person to comply.

(2) At any time before the court disposes of the injunction proceeding, it may grant an

interim injunction.

Regulations

(1) The Lieutenant Governor in Council may make regulations referred to in

section 41 of the

Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make the

following regulations:

(

a) defining, for the purpose of paragraph (

d) of the definition of "new

home" in

section 1, a class of buildings or portion of a building, including a

manufactured home, as a new home to which this Act applies;

(

b) prescribing dwelling units for the purposes of the definition of "owner

builder" in

section 1;

(

c) prescribing renovations, and requiring that renovations be covered by home warranty

insurance;

(

d) prescribing additional powers and duties of the chief executive officer and the

registrar;

(

e) requiring categories of residential subcontractors and residential renovators to be

licensed under this Act, and may provide differently for different categories of

residential subcontractors and residential renovators;

(

f) exempting

(

i) categories of persons from all or any portion of this Act and the regulations, and

may provide differently for different categories of persons,

(ii) a building, a class of buildings, a portion of a building or the common property,

common facilities and other assets of a strata corporation from the definition of

"new home" in

section 1,

(iii) a category of persons from the definition of "owner builder" in

section

(iv) a category of persons from the definition of "residential builder" in

section 1, and

(

v) areas of British Columbia from the application of all or any portion of this Act

and the regulations;

(

g) prescribing information that must be provided by warranty providers to the

registrar;

(

h) requiring owner builders, and any other persons exempted from

section 22 (1) or

(3), who do not provide home warranty insurance and who sell the home during the period in

which home warranty insurance would have been in force under this Act or the regulations,

to provide a disclosure notice or security, or both, on the resale of the home, and may

specify the form and content of a disclosure notice and the terms, conditions, kind and

amount of security;

(

i) prescribing interest payable on an assessment made under

section 26;

(

j) requiring municipalities and regional districts to collect assessments under

section 26 from applicants for building permits, and to forward to the office the amounts

collected;

(

k) providing that a person who commits an offence under the regulations is liable to

the penalties provided for in

section 34 (1) to (3);

(

l) defining, for the purpose of this Act or the regulations, any word or expression

not defined in this Act;

(

m) respecting any matters that, in the opinion of the Lieutenant Governor in Council,

will assist in the operation of the program.

(3) The Lieutenant Governor in Council may make regulations respecting licensing under

this Act as follows:

(

a) prescribing the qualifications and conditions for licensing of residential

builders, residential subcontractors and residential renovators, and may provide different

qualifications and conditions for different categories of residential builders,

residential subcontractors and residential renovators;

(

b) prescribing licensing fees, and may set different fees for different categories of

residential builders, residential subcontractors and residential renovators;

(

c) prescribing conditions that may be imposed on the licence or the renewal of the

licence of a residential builder, residential subcontractor or residential renovator for

the purposes of this Act, and may provide different conditions for different categories of

residential builders, residential subcontractors and residential renovators;

(

d) respecting the issuance, duration, expiration, renewal, suspension and cancellation

of licences;

(

e) prescribing how notice of a decision of the registrar may be served on an affected

person.

Minister's regulations

33 The minister may make regulations as follows:

(

a) prescribing the form and content of reports required from residential builders,

residential subcontractors and residential renovators;

(

b) respecting the form of evidence that must be provided to a municipality or regional

district by an applicant for a building permit;

(

c) prescribing information to be provided to the public about residential builders,

residential subcontractors and residential renovators.

Offence and penalty

(1) Every person who

(

a) knowingly furnishes false information in any application under this Act or in any

statement or return required to be furnished under this Act or the regulations, or

(

b) contravenes

section 9 (3), 14 (1) or (5), 19 (4), 21 or 22 (1) or (3),

commits an offence and is liable on conviction to a fine of not more than $25 000 or to

imprisonment for a term of not more than one year, or to both.

(2) If a corporation commits an offence under subsection (1), every director, officer

or other person who authorized, permitted or acquiesced in the offence commits the offence

personally and is liable on conviction to a fine of not more than $25 000 or to

imprisonment for a term of not more than one year, or to both.

(3) Despite subsection (1), if a corporation is convicted of an offence under

subsection (1), the maximum penalty that may be imposed on the corporation is $100 000.

(4) Every person who contravenes

section 19 (3) commits an offence and is liable on

conviction to a fine of not more than $2 000 or to imprisonment for not more than 6

months, or to both.

(5) Section 5 of the Offence Act does not apply to this Act.

Compensation to consumer

(1) In addition to a penalty imposed under

section 34, a court that convicts

a defendant of an offence under this Act may at the time the penalty is imposed order the

defendant to pay to the owner as compensation for pecuniary loss suffered by the owner as

a result of the commission of the offence an amount not greater than the monetary

jurisdiction specified in the Small Claims Act.

(2) An application for an order under subsection (1) may be made by an owner or by the

Crown prosecutor on the request and on behalf of the owner unless the owner has commenced

a civil action against the defendant in respect of the same matter.

(3) If the defendant does not comply with an order made under subsection (1) within 30

days or within the time ordered by the court, whichever is later, the owner may, by filing

the order with the registrar of the Provincial Court hearing matters under the Small

Claims Act in or near the place where the conviction was entered, enter judgment in

that court.

(4) A judgment entered in the Provincial Court under subsection (3) is enforceable

against the defendant in the same manner as if it were a judgment rendered in that court

in civil proceedings.

Transitional

36 The Lieutenant Governor in Council may make regulations the Lieutenant

Governor in Council considers necessary or advisable for meeting or removing any

difficulty arising out of the coming into force of this Act or any provision of it, and

for preserving and giving effect to the rights of persons arising prior to the coming into

force of this Act or any provision of it, and the regulations may be made to apply

generally or to a particular case or class of cases.

Consequential Amendments

Financial Institutions Act

Section 1 (1) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is

amended

(

a) in the definition of "deposit business" by striking out

"term;" at the end of paragraph (

d) and substituting

"term," and by adding the following after paragraph (d):

whether or not the person undertaking an activity or activities set out in paragraphs

(

a) to (

d) can or does distribute any gain, profit or dividend, or otherwise disposes of

the person's assets, to a member or shareholder of the person other than during winding up

or on dissolution; ,

(

b) in the definition of "insurance business" by striking out

"(

a) to (g);" at the end of paragraph (

h) and substituting

"(

a) to (g)," and by adding the following after paragraph (h):

whether or not the person undertaking an activity or activities set out in paragraphs

(

a) to (

h) can or does distribute any gain, profit or dividend, or otherwise disposes of

the person's assets, to a member or shareholder of the person other than during winding up

or on dissolution; , and

(

c) in the definition of "trust business" by striking out

"person;" at the end of paragraph (

c) and substituting

"person," and by adding the following after paragraph (c):

whether or not the person undertaking an activity or activities set out in paragraphs

(

a) to (

c) can or does distribute any gain, profit or dividend, or otherwise disposes of

the person's assets, to a member or shareholder of the person other than during winding up

or on dissolution; .

Freedom of Information and Protection of Privacy Act

Schedule 2 of the Freedom of Information and Protection of Privacy Act,

R.S.B.C. 1996, c. 165, is amended by adding the following:

Public Body:

Homeowner Protection Office

Head:

Chief Executive Officer .

Insurance Act

39 The Insurance Act, R.S.B.C. 1996, c. 226, is amended by adding the following

section to

Part 7:

Home warranty insurance

189.1

(1) In this section:

"new home" has the same meaning as in

section 1 of the Homeowner

Protection Act;

"home warranty certificate" means a certificate, issued by an insurer

the home warranty insurance;

"home warranty insurance" means a contract of insurance covering

defects in the construction of a new home or renovation, and consequential losses or costs

incurred by the owner;

"owner" has the same meaning as in

section 1 of the Homeowner

Protection Act ;

"renovation" has the same meaning as in

section 1 of the Homeowner

Protection Act;

(2) If mandatory conditions for home warranty insurance are required by regulations

made under this Act

(

a) the mandatory conditions are deemed to be part of the home warranty insurance and

must be printed in every home warranty certificate under the heading "Mandatory

Conditions", and

(

b) no variation or omission of or addition to a mandatory condition is binding on the

insured.

(3) The home warranty insurance must provide coverage at least equal to the minimum

standards set out in the regulations and, if the home warranty insurance does not, in any

of its provisions, provide coverage at least equal to the prescribed minimum coverage, the

coverage provided in the relevant provisions of the contract is deemed to be replaced by

the appropriate prescribed minimum coverage.

(4) The home warranty insurance must not contain

(

a) any term which purports to waive, exclude, limit or qualify the home warranty

insurance except as may be permitted by regulation, or

(

b) any exclusions from coverage except as permitted by regulation,

and any such term or exclusion has no effect.

(5) A person must not waive or invalidate home warranty insurance except as may be

permitted by the regulations, and any such waiver or invalidation has no effect.

(6) The home warranty insurance is enforceable even if there is no privity of contract

between the owner and the insurer.

Section 192 is amended by adding the following subsections:

(3) Without limiting subsection (1), the Lieutenant Governor in Council may, on the

recommendation of the minister responsible for the Homeowner Protection Act , make

regulations as follows:

(

a) prescribing mandatory conditions that must be contained in a home warranty

insurance;

(

b) prescribing minimum standards for the coverage to be provided by home warranty

insurance, including periods of coverage, the time at which coverage begins and coverage

limits;

(

c) prescribing permitted exclusions of coverage, waiver, limitations or qualifications

under home warranty insurance;

(

d) prescribing terms that must not be included in home warranty insurance;

warranty insurance;

(

f) prescribing classes of new homes, renovations and home warranty insurance, and

categories of residential builders and residential renovators.

(4) A regulation made under subsection (3) may be made applicable generally or to

specific persons, new homes, renovations or home warranty insurance or to a category of

persons or class of new homes, renovations or home warranty insurance, and may provide

differently for different persons, new homes, renovations or home warranty insurance or

for different categories of persons or classes of new homes, renovations or home warranty

insurance.

Real Estate Act

Section 1 of the Real Estate Act, R.S.B.C. 1996, c. 397, is amended in the

definition of "agent" by adding the following paragraph:

(e.2) performs strata management services for strata corporations, .

Section 55 (2) (

b) is amended by striking out "paragraph

(e.1)" and substituting "paragraph (e.1) or (e.2)" .

Commencement

43 This Act comes into force by regulation of the Lieutenant Governor in

Council.

Copyright © 1998:

Queen's Printer, Victoria, British Columbia, Canada