Protect yourself against new-home issues

By Michelle Hopkins
November 11, 2019

You’ve just purchased your brand-new dream house. Months later, you discover major plumbing problems that could drown you in debt. If your newly purchased home has serious issues, resolving them can take over your life. Was there something you could have done before you accepted the keys to your new home?

Yes, says Sukey Mehat, principal at Bolder Homes, an award-winning builder in North Vancouver.

“First and foremost, consumers should practice due diligence and do their homework,” says Mehat. “They should research the builder, get testimonials, find out how long they have been in business and what kind of reputation they have in the industry and in the community.”

Only hire a reputable builder who is a member of the National Home Warranty program.

“Find out upfront what the builder will stand behind and what the warranty program covers,” stresses Mehat.

One you’ve decided to hire the builder and your home is built, make sure they schedule walk-throughs with you.

“During these walk-throughs, together you make a list of existing problems that need correcting,” says Mehat. “These issues should be tackled a soon as possible. A second walk-through should happen on the first anniversary to see if there might be other issues. Many times, you have to live in a house for a few months before you notice any defects.”

However, there are some issues that do not fall under the Home Warranty program.

“If you aren’t cleaning your gutters and they clog up or you aren’t turning off your exterior water hoses during the winter months, these fall under the responsibility of the homeowner,” says Mehat. “In addition, some homeowners turn off their heat while on their winter holiday and this can seriously affect hardwood floors. The onus is on the homeowner to practice preventive maintenance to reduce the possibility of problems.”

Laura Anzulovich, marketing manager at multi-family builder Boffo Developments, agrees.

“All homebuyers should know that they are protected by the Homeowner Protection Act; the guidelines can be viewed on BC Housing’s website,” she explains. “Our Homeowner Care team schedules walk-through appointments for all new-home owners, during which time they tour their new home with a Boffo Homeowner Care representative and record any deficiencies.”

If the suite is free of deficiencies, the homeowner signs off that all is well and the home is ready for move-in.

“Builders should deal with any deficiency in a timely manner,” says Anzulovich. “Homeowners should also expect a secondary walk-through appointment to check that everything has been completed and signed off.”

The reality is, not everything works out seamlessly, says Wendy Acheson, BC Housing’s vice-president and registrar, licensing and consumer services.

Like Mehat and Anzulovich, Acheson cannot stress enough the importance of checking whether the builder is registered with the BC Housing’s New Home Registry, as “this is your best protection. This ensures that work is done to industry standards, not just code,” adds Acheson.

“It covers two years on labour and materials; five years on the building envelope, including water penetration; and 10 years on the structure.”

At the first sign of problems, Acheson strongly advises consumers to make a claim immediately.

“It is important to know what the coverage is within those 10 years because if your claim is outside the time coverage, it will be denied,” says Acheson. “It is really imperative to get that policy and read it carefully.”

B.C.’s home warranty program is the envy of many other provinces.

“Other provinces, like Ontario, Quebec and Alberta have mandatory policies in place, but ours is one of the best,” says Acheson.

Finally, Acheson says all homeowners should get an independent inspection done.

“Even if the property is new, it is crucial to get an independent inspection.”

Related reading

How to avoid costly mistakes when buying a new build

About Michelle Hopkins

Michelle Hopkins is a freelance journalist and corporate writer with extensive experience in development projects, home and business writing.

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