How to Navigate the Homeowners Protection Act

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.

Part 1: Licensing requirements in BC

Key takeaways:

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

Part 2: Home Warranty Insurance for New Home Buyers in B.C.

Key takeaways:

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

Part 3: Owner Builder Authorization

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

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

Part 4: Successfully Listing & Purchasing New Homes

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

1. Does the structure meet the definition of a new home according to the HPA?
2. Does the new home comply with all requirements of the HPA?

Part 5: Helping Your Clients Get the Most out of their Home Warranty Insurance Coverage

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.