Ted Barton Credit Services Inc.
Ted Barton Credit Services Inc.
EVERYONE IN BUSINESS NEEDS
A FULL SERVICE CREDIT OFFICE !!
A FULL SERVICE CREDIT OFFICE !!
EVERYONE IN BUSINESS NEEDS
A FULL SERVICE CREDIT OFFICE !!
A FULL SERVICE CREDIT OFFICE !!
The B.C. Homeowner Protection Act
and Home Builder Licensing
Starting May 1, 1999 all new dwelling units will require a warranty, and a licensed builder. The license and the warranty are fall-out from the recent "Leaky Condo" experiences. The new warranty - to be available on every new residential construction unit, will include: labour and materials for 24 months, the building envelope for 5 years, and structural components for 10 years. (This includes houses and condos but not rentals like apartment houses, or dormitories, hotels and motels, care facilities or floating homes.)
A house builder will require a "Residential Builder License" and the license is only available if he can convince a "warranty provider" of his skill and competence. Thus, this builder's houses are covered before he gets a building permit or license. So, in effect, a warranty, a licence and a building permit, are the three most important things the builder needs. Without them, he can't do anything.
Suppliers and sub-contractors, it would seem, have no responsibility for a general contractor who operates without a license, but there are fines of up to $25,000 for individuals and $100,000 for corporations (and/or up to a year in jail), for building without a license. So, perhaps you would care if your general contractor was forced to pay a big fine or, worse, was carted off to jail! If that happens, your problem will be to find someone to pay you. Be careful too - because if you go along with an illegal, unlicensed builder, you might be held to account for participating in the illegal activity. Remember, no license means no warranty!
The part time Owner Builder - those who build a house "for themselves" once a year then sell it, may or may not be able to provide a warranty when they sell that house. These are called unlicensed Owner Builders and will, upon applying for a building permit, sign a "Declaration and Disclosure Notice" saying that the house will be "owner-built". A copy of the "notice" is given to the purchaser of an owner-built house if the house is sold anytime within 10 years of being built. However, an Owner Builder, without a license or warranty, may only build one house every 18 months and, he may only build single, unattached residential units with one legal title. The rule implies that anyone living in the house where the Owner Builder lives is the Owner Builder.
Sure, any private owner of a building site (say, John & Mary), may build their house whenever they wish. However, the full intent in "Owner Builder" is that John & Mary are the people actually doing some work, plus ordering supplies and supervising the trades. If they ask uncle Harry to run the job for them, or they go out and hire a "Supervisor" to look after the site and co-ordinate the trades, this person may need a license. If John & Mary apply for a building permit, and sign the "Owner Builder Declaration..." (that they are doing the supervision themselves), they may be liable to fines for falsely saying they are "Owner Builders". The person who serves as their supervisor, may be deemed a "Residential Builder" who must, therefore, have a warranty and a license arranged ahead of time.
The license for Residential Builder costs $600 for the first year and can be renewed thereafter for $500 per year. There is $25.00 fee for each dwelling unit for which a warranty is provided. If multiple unit dwellings (condos) are to be built in "the lower BC coastal area", roughly - Campbell River and south on Vancouver Island, Sunshine Coast, Powell River, Squamish Lillooet, Greater Vancouver or Fraser Valley Regional District, there is an additional payable amount of $750.00 for each dwelling unit. (go figure for a 100 unit project!)
Warranty claims from owners will impact on insurance companies, then from the insurance companies to the builder - and those builders will have recourse to the suppliers, workers and trades who supplied labour and material to the project. Everybody on the job will be accountable for their work and material, under the new Homeowner Protection Warranty.
What to do? Everyone in the construction industry needs to become familiar with these new rules and learn how to live by them. The new system brings more responsibility to everyone in the business. There can be job visits by the Registrar of Residential Builders staff who may conduct interviews of any person working at the site, checking licenses, etc.
and Home Builder Licensing
Starting May 1, 1999 all new dwelling units will require a warranty, and a licensed builder. The license and the warranty are fall-out from the recent "Leaky Condo" experiences. The new warranty - to be available on every new residential construction unit, will include: labour and materials for 24 months, the building envelope for 5 years, and structural components for 10 years. (This includes houses and condos but not rentals like apartment houses, or dormitories, hotels and motels, care facilities or floating homes.)
A house builder will require a "Residential Builder License" and the license is only available if he can convince a "warranty provider" of his skill and competence. Thus, this builder's houses are covered before he gets a building permit or license. So, in effect, a warranty, a licence and a building permit, are the three most important things the builder needs. Without them, he can't do anything.
Suppliers and sub-contractors, it would seem, have no responsibility for a general contractor who operates without a license, but there are fines of up to $25,000 for individuals and $100,000 for corporations (and/or up to a year in jail), for building without a license. So, perhaps you would care if your general contractor was forced to pay a big fine or, worse, was carted off to jail! If that happens, your problem will be to find someone to pay you. Be careful too - because if you go along with an illegal, unlicensed builder, you might be held to account for participating in the illegal activity. Remember, no license means no warranty!
The part time Owner Builder - those who build a house "for themselves" once a year then sell it, may or may not be able to provide a warranty when they sell that house. These are called unlicensed Owner Builders and will, upon applying for a building permit, sign a "Declaration and Disclosure Notice" saying that the house will be "owner-built". A copy of the "notice" is given to the purchaser of an owner-built house if the house is sold anytime within 10 years of being built. However, an Owner Builder, without a license or warranty, may only build one house every 18 months and, he may only build single, unattached residential units with one legal title. The rule implies that anyone living in the house where the Owner Builder lives is the Owner Builder.
Sure, any private owner of a building site (say, John & Mary), may build their house whenever they wish. However, the full intent in "Owner Builder" is that John & Mary are the people actually doing some work, plus ordering supplies and supervising the trades. If they ask uncle Harry to run the job for them, or they go out and hire a "Supervisor" to look after the site and co-ordinate the trades, this person may need a license. If John & Mary apply for a building permit, and sign the "Owner Builder Declaration..." (that they are doing the supervision themselves), they may be liable to fines for falsely saying they are "Owner Builders". The person who serves as their supervisor, may be deemed a "Residential Builder" who must, therefore, have a warranty and a license arranged ahead of time.
The license for Residential Builder costs $600 for the first year and can be renewed thereafter for $500 per year. There is $25.00 fee for each dwelling unit for which a warranty is provided. If multiple unit dwellings (condos) are to be built in "the lower BC coastal area", roughly - Campbell River and south on Vancouver Island, Sunshine Coast, Powell River, Squamish Lillooet, Greater Vancouver or Fraser Valley Regional District, there is an additional payable amount of $750.00 for each dwelling unit. (go figure for a 100 unit project!)
Warranty claims from owners will impact on insurance companies, then from the insurance companies to the builder - and those builders will have recourse to the suppliers, workers and trades who supplied labour and material to the project. Everybody on the job will be accountable for their work and material, under the new Homeowner Protection Warranty.
What to do? Everyone in the construction industry needs to become familiar with these new rules and learn how to live by them. The new system brings more responsibility to everyone in the business. There can be job visits by the Registrar of Residential Builders staff who may conduct interviews of any person working at the site, checking licenses, etc.
E-Mail: Ted@Ted-Barton.com
Legal Information