How to Navigate the Homeowners Protection Act

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To help real estate professionals work within the Homeowners Protection Act (“HPA”), BC Housing has produced a video series entitled Guide to the Homeowner Protection Act for Realtors. This five-part video series is designed to help real estate professionals confidently navigate the HPA when they help their clients buy and sell homes in B.C.

Key takeaways:

Builders and developers must be licensed to build or sell new homes in B.C.
Anyone selling a brand-new home must have a Developer Licence
Use the BC Housing Public Registry to confirm whether a builder is licensed and their licence type

Key takeaways:

New homes are protected against construction defects for the first ten years, unless exempt
Licensed builders must arrange insurance before construction begins
A new home requires home warranty insurance unless exempt
Home warranty insurance policy documents include coverage details, exclusions, and duration

Key takeaways for when an owner plans to build their own home:

Owner Builder Authorization is required
Not applicable to First Nations reserve lands
Treaty First Nations need proof of home warranty insurance or an exemption
The rules for selling owner-built homes include a requirement to issue a Disclosure Notice found in BC Housing’s Owner Builders Portal

Two key items to verify before listing or signing a Purchase and Sale Agreement:

This video covers:

Critical pre-move steps that clients need to take before moving into their new home
Responsibilities as homeowners
Essential maintenance practices and resources
How to handle potential issues
Conditions that might limit coverage
Process for making and resolving construction defect claims

You can watch the full video series on BC Housing’s YouTube channel.