Planning on building, renovating or selling? Below outlines the requirements to selling a new home under the Homeowner Protection Act.
The Homeowner Protection Act (HPA) is activated to ensure the necessary requirements are met before any person is able to build, sell or offer to sell a new home.
The HPA defines a ‘new home’ as:
- a building, or portion of a building, that is newly constructed or current in the process of being constructed intended for residential occupancy
- a home that is being substantially renovated
The HPA considers a home to be substantially renovated when if after renovations are complete, 25% or less of the home’s original structure is remaining.
At BrokerSmart, we are here to assist in confirming with the builder and/or the owner that theyare meeting the requirements of the HPA.
Residential Builders are required to be registered under the Homeowner Protection Office (HPO). Warranty insurance from a third-party must be confirmed prior to the start date of building.
Owner-builders must me eligibility requirements, pay a fee, and obtain an Owner-Builder Authorization from the HPO because construction begins. The builders must occupy the home for at least a year, after obtaining the occupancy permit. They are not allowed to sell or rent the home in that first year.
There is a few exceptions for owner-builders compared to residential builders, but they are required to meet specific requirements.
For more information on the requirements for selling a new home, please click here.
If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at firstname.lastname@example.org and we would be happy to assist you.