Chapman vs. Stacey awards $96,900 plus GST in damages to the Buyer of an Owner Built home for poor construction. Contrary to popular belief the Homeowner Protection Act does mandate statutory protection for buyers of Owner Built homes in British Columbia for up to 10 years.
It’s a broad stroke to allow this ruling brush over consumer confidence for the overall absence of quality in an Owner Built home, which I can assure you is not always the case. In fact, there are some Owner Builders in the market place that I would rather have build my personal home over some of the Licensed Residential Builders that are available to us. Keep in mind the 2/5/10 year warranty program doesn’t necessarily cover a lack of quality as much as it does deficiencies.
Although the quality for either product will vary significantly, the real difference to take away from this blog is that the Owner Builder, although still required to provide a statutory warranty that extends up to 10 years, will not be insured in most cases. The statutory requirement for new home warranty on a home constructed by a licensed residential builder is a program that is covered by a third party insurer, which presumably will be a much easier recourse on a valid warranty claim than having to sue and collect on an Owner Builder judgement.
This blog is brief to this one piont, however there is plenty to consider when purchasing a home that is less than 10 years old. If you would like to know more, please contact me anytime.
Source: Mike Mangan, Legally Speaking #489, October, 2016