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When was Bill 34, The Homeowner Protection Amendment Act, introduced in the Legislature?
The Minister responsible for Housing, Rich Coleman introduced Bill 34, the Homeowner Protection Amendment Act, on April 26, 2007. The Bill was given first reading on April 26, 2007 and received royal assent on May 31, 2007.
When did the Homeowner Protection Amendment Act come into force?
The Homeowner Protection Amendment Act and Regulation came into effect on November 19, 2007.
What is the new Homeowner Protection Amendment Act?
The amendments to the Homeowner Protection Act put in place stronger protection for new homebuyers. In brief, the amendments strengthen licensing requirements for residential builders; require anyone wishing to build a home under the ownerbuilder exemption to meet more stringent criteria; strengthen enforcement provisions, including compliance orders and penalties; permit the Homeowner Protection Office (HPO) to provide more information on the public registry; and provide an internal review and independent appeal process for both licensed builders and owner builders. These changes ensure that homeowner protection legislation in British Columbia is both strong and fair.

The Homeowner Protection Amendment Act has a dual benefit. It increases consumer protection for buyers of new homes and will raise the bar of professionalism in the residential construction sector, providing consistency and improving the quality of construction in B.C.

Why are more stringent measures required to protect new homebuyers?
Some builders were using the ownerbuilder exemption to compete unfairly with licensed residential builders by avoiding licensing and home warranty insurance requirements. This practice eroded consumer protection and created unfairness in the industry. The amendments ensure that only individuals who intend to build homes for their own personal use are issued an ownerbuilder exemption. Individuals who abuse the exemption by building and selling shortly after will be restricted. These changes increase protection for homebuyers and provide a stronger licensing program for residential builders.
How can the HPO address this abuse?
The Act provides the Homeowner Protection Office with the compliance tools necessary to improve its regulatory role in the residential construction industry. These include compliance orders and administrative monetary penalties.
How are consumers protected under the amendments to the Homeowner Protection Act?
Amendments to the Homeowner Protection Act increase protection for people buying new homes in B.C. through new compliance and enforcement tools, strengthened requirements for owner builders, and new professional qualifications for licensed residential builders. The changes mean that buyers of new homes are better protected than ever before. Consumers will also have more information at their disposal about new homes which they are considering buying.
What are the main benefits of the new Homeowner Protection Amendment Act?
Stronger, more effective and efficient consumer protection.

More effective consumer protection

  • Increasing consumer protection for buyers of new homes and helping to raise the bar of professionalism in the residential construction sector.
  • Enhancing disclosure requirements for the sale of owner-built homes. More buyers will be aware that they are buying an owner-built home without home warranty insurance.
  • Authorizing the HPO to post additional information on licensed builders, owner builders and new homes on the public registry, which will result in better-informed purchasing decisions.
  • Ensuring that the HPO can introduce more stringent licensing requirements over time to raise the bar of professionalism in the residential construction sector.

Enhanced enforcement

  • Addressing abuse of the owner-builder exemption from licensing and warranty insurance requirements.
  • Helping to level the playing-field for licensed builders.
  • Putting an end to the licensed builder subsidy of owner builder administration and compliance.
  • Providing additional compliance tools to the HPO that can be used for licensed builders as well as owner builders. This will allow the HPO to respond more quickly to violations of the Homeowner Protection Act.
  • Enhancing the Registrar’s ability to regulate licensees.

More efficient

  • Allowing the HPO to authorize owner-builder exemptions and charge a fee for the service.
  • Providing some flexibility in the Registrar's authorization of owner-builder exemptions if there are extenuating circumstances for genuine owner builders.
  • Establishing an appeals mechanism for licensing and owner-builder authorization decisions.
What does the new Homeowner Protection Amendment Act require owner builders to do?
This legislation requires anyone wishing to build their own home under an ownerbuilder exemption to meet specific criteria, obtain an authorization from the HPO and to pay a fee to cover administration and compliance costs associated with the ownerbuilder authorization.
How does the new Homeowner Protection Amendment Act tighten eligibility requirements for ownerbuilder authorization?
The Homeowner Protection Amendment Act tightens eligibility requirements for the ownerbuilder authorization by setting restrictions on sale, strengthening personal-use requirements and increasing waiting periods for repeat owner builders. The Registrar will have some discretion to waive certain requirements of an owner-builder authorization in cases of personal hardship.
How will the Homeowner Protection Office enforce the Act?
The amendments provide authority for:

  1. The use of administrative monetary penalties and compliance orders in enforcing the Act.
  2. An internal review process and external appeal mechanism for decisions of the Registrar, including administrative penalties, owner-builder authorizations and builder licences; and stronger authority for the Registrar to deny, suspend, cancel or impose conditions to a residential builder licence.
Is there widespread acceptance of the Act amendments?
The amendments are the result of 18 months of consultation with industry groups, consumers and members of the public. There is broad acceptance from both the residential construction industry and consumer groups. These changes will help the residential building industry serve its customers better and give homebuyers the confidence they need.
Do the amendments enhance protection for homebuyers with respect to pre-sale contracts?
The focus of the Homeowner Protection Amendment Act is protecting consumers against construction defects in new homes. Real estate transactions are covered under the Real Estate Services Act and the Real Estate Development Marketing Act.