Building or Buying a New Home?

A recent update from the Realtors Legal Update course…It seems they are trying to tighten the requirements of new home builders / Warranty.


Building or buying a newly built house?

Under the Home Protection Act, builders (developers and Owner builder) and buyers should be aware of the requirements under the Act. The major conditions of the Act are as follows:

  • All new homes must be built by an HPO (Home Protection Office) licensed residential builder
  • All new homes must be covered by home warranty insurance or there must be an exemption from these conditions pursuant to the ACT
  • To legally offer to sell a new and never occupied home a developer must be a licensed residential builder

The most common exemption from the conditions is the Owner-Builder Authorization. A potential owner-builder must apply and qualify through the HPO.

The owner-builder must:

  • Be an individual, personally own the land and be the builder of the house (either directly or act as the general contractor
  • Own and occupy the new home for 12 months after obtaining the final occupancy permit
  • Must provide a prescribed Owner-Builder Disclosure Notice, obtained from the HPO to all potential buyers. During the first ten years after the occupancy permit is issued, all subsequent owners must also provide the Disclosure to potential buyers


Really important note, that under Sec. 22(1) of the Act – A person must not build, offer for sale or sell a new home unless the new home is covered by home warranty insurance provided by a warranty provider.


For further detailed information, contact the Home Protection Office.

Leave a Reply