Buyer protection: Get it in writing
Jeani Read
Province
Moving into a new condo like the stunning Cora Towers in Coquitlam? Make sure you take good care of your new pad or your insurance may be limited.
While B.C. may have the best new-homebuyer protection in Canada, that’s not a licence to be smug, says Jan Calkins, manager of communications for the Homeowner Protection Office.
People still need to educate themselves and take responsibility for their homes.
“People know they have to maintain their cars, but with their homes they think they’re forever,” says Calkins. “When they purchase a home, people don’t put the same due diligence into that investment.”
If owners don’t do the correct maintenance on their homes, it may affect their warranties.
“Warranty providers can limit the insurance if the the proper maintenance has not been done,” says Calkins. If the warranty providers want to make the coverage contingent on proper maintenance, they’re required to provide a maintenance manual to the owner; if the owners fail to follow it, their insurance may be limited.
“Make sure you do it properly,” says Calkins.
The Homeowner Protection Office’s tips on home maintenance are available at www.hpo.bc.ca, or by calling 1-800-407-7757.
The Homeowner Protection Act was passed in 1998, and in 1999 regulations were brought into effect to give homebuyers an excellent level of protection: a two-five-10-year warranty. This means two years of coverage on labour and materials, five years on the building envelope and 10 years on the structure. Builders must be licensed with the Homeowner Protection Office and have insurance from a warranty provider before they begin construction.
But homeowners should be vigilant, Calkins says. If they don’t receive documentation for their new home within a month, for example, they should get in touch with their insurer to make certain they receive it.
As well, buyers should remember strata-titled homes have two warranties: one on the unit and one on the common property. It’s important to be aware that the commencement dates for the two warranties can be different.
The two-five-10 warranty goes into effect when the first unit of the development is occupied. Some owners who pre-buy into a big development that may take two years between first-occupancy and completion may only be insured for eight years, which may affect the price.
“It’s good to know and ask and be informed,” says Calkins. “It’s a big question and a good negotiating point.”
When you buy your new home, do your homework, says Calkins. Talk to the builders, developers and real estate agents. Some homes that people assume are single-family detached dwellings are, in fact, strata-titled homes, which brings up the issue of common property.
“In this hot market, people often leap before they look,” says Calkins. “Ask questions and get it in writing.”
© The Vancouver Province 2007
