Owner Builder Homes!

Buying or Selling an Owner-Built Home

Welcome to the enchanting realm of owner-built homes in beautiful British Columbia! As a real estate professional, you have the opportunity to navigate the intricacies of this unique market and guide your clients through an extraordinary journey of home construction. In this comprehensive guide, we will unravel the mysteries, provide valuable insights, and equip you with the knowledge to protect your client's interests. So, fasten your seatbelt and prepare for an engaging adventure as we delve into the steps and strategies to navigate the captivating world of owner-built homes in BC.

Step 1: Unveiling the Secrets of Home Construction in BC

Are you ready to embark on a journey into the world of owner-built homes in beautiful British Columbia? Whether you're representing a buyer or a seller, it's essential to understand the ins and outs of the process to protect your client's interests. So, let's dive in!

Unlock the Mysteries of Home Warranty Insurance

Before delving into the captivating realm of owner builders, let's first equip ourselves with knowledge. The Homeowner Protection Office's (HPO) New Homes Registry is your gateway to discovering whether a home has home warranty insurance or if it falls under an exemption like the esteemed Owner-Builder Authorization. This online treasure trove not only reveals the legal status of a home but also ensures a seamless and legal sale. Don't miss out on this speedy and straightforward method of obtaining crucial information.

Step 2: Mastering the Art of Owner-Builder Clients

As you guide owner-builder clients through the labyrinth of home construction, ensure they file their occupancy permit information promptly. By doing so, the HPO can verify the details and provide an Owner Builder Disclosure Notice well in advance. This proactive approach lays the foundation for successful and transparent transactions, leaving no room for uncertainty when offers pour in.

Step 3: Illuminating the Path for Prospective Buyers

Within the mystical ten-year period, any potential buyers deserve enlightenment. Shine a light on their path by ensuring they receive the highly coveted Owner-Builder Disclosure Notice. Insert the Receipt of Owner-Builder Disclosure Notice Clause into the Contract of Purchase and Sale, a sacred contract that confirms the buyer's receipt of this mystical document.

How to Safeguard Your Buyer Client's Interests

Embarking on a journey with a buyer through the realm of owner-built homes requires wisdom and vigilance. Arm yourself with knowledge and guide your clients with confidence:

(a) Guiding the Way for Buyers

Venturing into the realm of owner builders demands an understanding of their obligations. Enlighten your buyers about the necessity of an Owner Builder Declaration Notice, and ensure the owner builder provides one. Be their beacon of light by consulting the Licensing and Consumer Services Branch of BC Housing's New Homes Registry, verifying compliance with owner builder requirements. Should a voluntary third-party warranty be absent, remind them that the owner builder remains liable for construction defects for a decade (10 years). Encourage buyers to consider crucial factors like financial stability, local presence, and willingness to fulfill obligations when making their purchasing decisions. Remember, knowledge is power!

(b) Unraveling the Mystery of Non-compliant Owner Builders

In your quest to find the perfect home, tread carefully and be mindful of non-compliant owner builders. If you encounter an owner builder or a seller with a home that should be covered by a new home warranty, ensure all obligations under the Homeowner Protection Act (HPA) have been met. Seek guidance from BC Housing's New Home Registry to confirm the legality of selling an owner-built home or the presence of required warranties. Remember, your integrity demands that you uphold the law. If the required Owner Builder Declaration Notice is absent, the path to selling the property becomes treacherous. Cease providing trading services to any seller client insisting on proceeding unlawfully. Protect yourself and your clients from dire consequences.

(c) Unveiling the Mystery of Developers Claiming Warranty Exemption

When working with developers who claim exemption from providing a warranty prior to completion, unravel the mystery by verifying this information with BC Housing. Wisdom dictates that you always advise your clients to seek independent legal advice when necessary. Ensure they comprehend any risks lurking in the shadows. A journey through the real estate world should be undertaken with caution and protection.

Embrace the Power of the Owner Builder Disclosure Notice

While the allure of listing an owner-built property before receiving the Owner Builder Disclosure Notice may be tempting, it comes with risks. The disclosure must be presented to buyers before entering into any contract of purchase and sale, else the transaction teeters on the edge of uncertainty. As a prudent real estate professional, remind your clients of their sacred duty to provide this disclosure promptly. Encourage them to secure a copy or order one before listing the property for sale. Your guidance will ensure a smooth and confident journey for both you and your clients.

So, my friend, armed with these newfound insights, embark on your adventure into the captivating world of owner builders in British Columbia. Protect your clients, guide them through the mysteries, and pave the way for successful transactions. May your journey be filled with excitement, knowledge, and prosperous outcomes!

REFER TO our Highnote app with all BC HOUSING links