In the first part of this three-part article on owner built homes we introduced the owner builder scheme in the Homeowner Protection Act of British Columbia (the “Act”) and the Homeowner Protection Act Regulation of British Columbia (the “Regulation”) and discussed the implications of owner built homes on sellers. In the second part we discussed the implications of owner built homes on buyers. In this third and final part we will switch gears once again and discuss the implications of owner built homes on listing and selling agents.

Being the Listing Agent for an Owner Built Home:

Under section 7(j)(vii) of the Trading Services the Professional Standards Manual, a licensee under the Real Estate Services Act of British Columbia may not accept a listing of a new home unless and until the owner has complied with the requirements of the Act.

Before listing a home, a realtor should take the following steps:

(a)  confirm whether or not the home is an owner built home. The easiest way to do this is to conduct a free search with the Homeowner Protection Office branch of BC Housing (the “HPO”). All homes registered with the HPO on or after November 19, 2007 are searchable on the New Homes Registry at https://lims.hpo.bc.ca/prs/NewHomes/. If you are searching for a home registered after July 1, 1999 and before November 19, 2007, or you cannot find a property on the registry, contact the HPO directly;

(b)  confirm that either the 12 month prohibition period has expired or that the seller obtained  permission from the HPO; and

(c)  ensure that all prospective purchasers are provided with a disclosure notice in the prescribed form prior to the seller signing a contract of purchase and sale. The disclosure notice may be obtained from the HPO. In addition, a realtor listing an owner build home should also consider including an acknowledgement of receipt of such disclosure notice by the Buyer in the contract of purchase and sale.  The Real Estate Council of British Columbia suggests the following language:

The Buyer acknowledges having received a copy of the Owner-Builder Disclosure Notice dated ________________, prior to making or accepting this offer or counteroffer*, in accordance with the Homeowner Protection Act and regulations.

 *The underlined words were added by Touchstone Law Group LLP and are only a suggestion.

Being the Selling Agent for an Owner Built Home:

A selling agent should take the following steps to protect the interests of a buyer of an owner built home:

(a)  confirm whether or not the home is an owner built home. Do not rely on the property disclosure statement! Once again, the easiest way to confirm whether or not the home is an owner built home is to conduct a free search with the HPO (see above for more information);

(b) ensure that the buyer obtains a disclosure notice in the prescribed form; and

(c)  include the appropriate conditions precedents and terms in the contract of purchase and sale. Examples from the Real Estate Council of British Columbia include:

It is a fundamental term of this contract that the mandatory warranty insurance coverage required pursuant to the Homeowner Protection Act be provided.

Subject to the Seller providing to the Buyer a copy of the home warranty insurance policy, and the Buyer being satisfied as to this policy, on or before  _____________. This condition is for the sole benefit of the Buyer.

If you are considering building, selling, listing or buying an owner built home or to learn more about owner built homes in general, please do not hesitate to contact our office at 250-448-2637.

Author: Danielle (Dani) Brito

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area of real estate law at the following:

(b) ensure that the buyer obtains a disclosure notice in the prescribed form; and