BC Realtor New Home Warranty Guide: Homeowner Protection Act, 2-5-10 Warranty & Builder Claims (2026)
BC's new home warranty program — established under the Homeowner Protection Act (HPA) — gives buyers of new construction one of the strongest statutory warranty protections in Canada. The 2-5-10 warranty structure, mandatory third-party warranty providers, and strict owner-builder disclosure requirements are all part of a framework that BC realtors must understand thoroughly when representing buyers of new homes, presales, or properties built within the last 10 years.
BC Homeowner Protection Act — Framework Overview
The Homeowner Protection Act (SBC 1998, c. 31) and its regulations established BC's mandatory new home warranty program. It is administered by BC Housing (formerly BC Housing Management Commission). The program requires licensed residential builders to provide third-party warranty insurance on all new homes they build.
| HPA Requirement | Details |
|---|---|
| Licensed builder requirement | Builders of new homes for sale in BC must be licensed through BC Housing's Licensing & Consumer Services (LCS) division |
| Mandatory warranty | Licensed builders must provide 2-5-10 home warranty insurance through an approved third-party warranty provider |
| Approved warranty providers | BC Housing approves warranty providers — current providers include Travelers Canada, Pacific Home Warranty, WBI Home Warranty, Homewise, and others |
| Warranty runs with land | The warranty attaches to the home, not the original buyer — it transfers automatically to subsequent purchasers within coverage periods |
| Owner-builder exemption | Individuals building their own home to live in themselves can register as owner-builders and are exempt from the licensed builder requirement |
| Owner-builder restriction on sale | Owner-builders who sell within 10 years must disclose owner-builder status and warranty-exempt nature; restrictions on resale apply |
| BC Housing registry | BC Housing maintains a public registry of licensed builders and owner-builder authorizations — searchable online |
| Strata developments | Common property warranty in strata: coverage periods are the same; strata corporation is the warranty beneficiary for common property |
The 2-5-10 Warranty — Coverage in Detail
The "2-5-10" designation refers to the three coverage periods that apply to different categories of defects. Each period starts from the date of possession (completion/occupancy), not the construction start date.
- ✓Defects in materials and labour
- ✓Plumbing, heating, ventilation, air conditioning (HVAC) defects
- ✓Electrical system defects
- ✓Mechanical system failures
- ✓Poor workmanship visible at possession that wasn't disclosed
- ✗Normal wear and tear
- ✗Cosmetic defects (scratches, dents) not reported at possession
- ✗Damage caused by homeowner misuse or improper maintenance
- ✓Defects in the building envelope
- ✓Roof covering, roof structure, and flashings
- ✓Exterior walls, cladding, and finishing
- ✓Windows, skylights, and doors (weatherproofing)
- ✓Decks, balconies, and their waterproofing
- ✓Water ingress through the building envelope
- ✗Maintenance-related failures (gutters not cleaned, etc.)
- ✗Pre-existing environmental damage
- ✗Damage from events beyond normal weather
- ✓Structural defects that affect load-bearing elements
- ✓Foundation and footings defects
- ✓Load-bearing walls and beams
- ✓Roof framing and structural elements
- ✓Defects that compromise the safety or integrity of the building
- ✗Non-structural components
- ✗Cosmetic or aesthetic issues
- ✗Defects not affecting structural integrity
Minimum Coverage Amounts (per unit)
| Home Type | 2-Year | 5-Year Building Envelope | 10-Year Structural | Total Minimum |
|---|---|---|---|---|
| Single-family home (detached) | $200,000 | $200,000 | $200,000 (or purchase price, whichever is greater) | Up to purchase price + $200K |
| Condo/strata unit | $200,000 | $200,000 per unit | $200,000 per unit (or purchase price) | Up to purchase price + $200K |
| Common property (strata) | N/A | Combined for building | Combined for building | Greater of $200K per unit or $2.5M |
Owner-Builder Homes — High-Risk Due Diligence
Owner-builder homes represent one of the highest-risk property types for buyers in BC. Without the statutory 2-5-10 warranty, buyers accept full risk of construction defects. The disclosure requirements are mandatory, but compliance varies — and some owner-builders may not be aware of their legal obligations.
Owner-Builder Selling Restrictions
- ⚠10-year restriction periodCannot sell within 10 years of receiving owner-builder authorization without mandatory disclosure
- ⚠Mandatory disclosure documentMust provide buyer with written disclosure that home was built as owner-builder and has no statutory warranty
- ⚠Buyer's written acknowledgmentBuyer must sign written acknowledgment that they received and understood the owner-builder disclosure
- ⚠No warranty transferOwner-builder homes have no 2-5-10 warranty to transfer — buyer accepts all construction risk
- ⚠BC Housing registry checkRealtors should verify owner-builder status on BC Housing's registry before listing or representing buyers of potentially owner-built homes
Due Diligence for Owner-Built Homes
- •Search BC Housing registry: confirm owner-builder authorization number and date
- •Calculate 10-year window: if authorization was issued within 10 years, mandatory disclosure applies
- •Request and review all building permits — confirm inspection sign-offs at each stage
- •Hire a licensed home inspector — structural, mechanical, electrical, envelope all require assessment
- •Request engineer's reports for foundation, structure, and building envelope if concerns exist
- •Review municipality's permit and inspection records — some are public
- •Building envelope: engage a building envelope specialist for any post-leaky-condo-era (pre-2000) construction or unusual cladding systems
- •HVAC: have heating system professionally inspected — owner-installed systems may have code compliance issues
- •Electrical: confirm ESA (Electrical Safety Authority) inspection certificate or equivalent
- •Title insurance: strongly recommend for owner-built homes — covers undisclosed construction defects not apparent from inspection
New Home Warranty Claims — Process & Timeline
| Step | Action | Timeline | Notes |
|---|---|---|---|
| 1 | Identify warranty provider | Before possession | Warranty documentation provided at closing; keep in a safe place for 10 years |
| 2 | Document the defect | When discovered | Photos, written description, dates; note when defect first became apparent |
| 3 | Contact builder (if available) | First step for minor defects | Many defects can be resolved directly with builder before formal warranty claim |
| 4 | File written claim with warranty provider | Within coverage period | Written notice required; verbal notice is not sufficient; use certified mail or email with delivery confirmation |
| 5 | Warranty provider assigns inspector | 2–4 weeks from filing | Inspector determines if defect is covered and documents scope |
| 6 | Repair authorization | After inspection | If covered, warranty provider authorizes repairs through builder or alternative contractor |
| 7 | Dispute resolution / arbitration | If claim denied or disputed | Warranty providers have binding dispute resolution; BC Housing also has oversight role |
| 8 | BC Housing complaint | If warranty provider fails to respond | BC Housing can investigate warranty provider compliance and take regulatory action |
Buying a Home with Remaining Warranty — Due Diligence
When representing a buyer purchasing a home built within the last 10 years, confirm the warranty status and transfer as part of standard due diligence. The warranty follows the property — it doesn't need to be re-registered — but buyers should know what coverage remains and its status.
Confirm for Buyer
- ✓Builder name and BC Housing licence number
- ✓Date of possession (warranty start date)
- ✓Name of warranty provider
- ✓Warranty certificate / policy number
- ✓Remaining coverage: which periods are still active?
- ✓Any prior warranty claims — what was repaired, when?
- ✓Any pending claims or outstanding issues
- ✓Contact information for warranty provider
Red Flags in Warranty Documentation
- ⚠No warranty documentation available: Seller cannot produce warranty certificate — verify with BC Housing directly
- ⚠Owner-builder home not disclosed as such: Warranty certificate missing; check BC Housing owner-builder registry
- ⚠Multiple prior claims: May indicate systemic construction quality issues — review what was repaired
- ⚠Unresolved open claims: Ongoing warranty claims at time of sale — confirm claim status before closing; may affect completion
- ⚠Warranty provider no longer operating: BC Housing guarantees coverage if warrantor fails — but claims through BC Housing are slower
Client Conversation Scripts
“Every new home sold by a licensed builder in BC has what's called the 2-5-10 warranty. The '2' refers to two years of coverage for defects in materials, labour, and your major systems like plumbing and HVAC. The '5' is five years of coverage for building envelope issues — that's your roof, exterior walls, windows, and doors keeping water out. The '10' is ten years on structural defects like your foundation and load-bearing elements. This warranty is provided by a third-party warranty company (not the builder), so if the builder goes out of business, you're still covered. I'll confirm the warranty provider and get you the policy documentation as part of your possession package.”
“I want to make sure you understand something important before we go further on this property. The BC Housing registry shows that this home was built under an owner-builder authorization, which means it was constructed by the owner themselves rather than a licensed builder. That means this home has no statutory 2-5-10 warranty — the protection that covers BC new homes for 10 years doesn't apply here. You're taking on the full risk of any construction defects. The seller is legally required to disclose this and provide you with a written disclosure form to acknowledge. Given the lack of warranty protection, I'd strongly recommend a thorough home inspection, and potentially a structural engineer's review, before you remove subjects.”
“If you've found a defect in your new home, the first step is to document it thoroughly — photos, written description of when you first noticed it and what you're seeing. Then reach out to the builder first for minor issues that are clearly workmanship problems. For anything more significant, contact your warranty provider directly. You should have received their name and contact information in your possession documents — it's typically Travelers, Pacific Home Warranty, or one of the other approved BC providers. File your claim in writing within the relevant warranty period and keep a copy. The warranty provider assigns an inspector, determines if it's covered, and authorizes repairs. If you run into resistance, I can help you escalate to BC Housing.”
“As the seller of a home that still has warranty coverage, you should provide the buyer with a copy of the warranty certificate and policy information so they know what coverage remains and how to contact the warranty provider. If there have been prior warranty claims, disclose what was repaired and when — that's relevant to the buyer's understanding of the property's condition. In the disclosure package, I'll help you document the possession date, warranty provider, and remaining coverage periods. This protects you from claims that you withheld material information.”
“The good news is that BC's new home warranty system has a backstop for exactly this situation. If your home's builder has gone bankrupt or out of business, you're still covered under the 2-5-10 warranty — but now through BC Housing directly rather than through the warranty provider. BC Housing maintains a fund to honor warranty claims when warranty providers fail. The process is slower than going through a functioning warranty provider, but your coverage isn't lost. Contact BC Housing's Licensing & Consumer Services directly with your warranty documentation and file your claim through their process.”
“I want to tell you about something that's important context for condos built in the 1980s and 1990s in BC. During that period — often called the 'leaky condo era' — building envelope defects caused widespread water ingress into thousands of condos across Metro Vancouver and the Island. The problems were severe enough that it triggered the creation of BC's new home warranty program in 1999. Condos built before 1999 don't have the 2-5-10 warranty coverage, and many were built with construction systems that proved to be defective. When we're looking at condos from that era, I want to look very carefully at the strata's repair history, the depreciation report, and whether a building envelope assessment has been done. The leaky condo issue was largely addressed in the early 2000s, but some older buildings still have unresolved or recurring issues.”
Frequently Asked Questions
What is BC's 2-5-10 new home warranty?
BC's new home warranty under the Homeowner Protection Act provides: 2 years coverage for defects in materials and labour (including plumbing, heating, and electrical), 5 years coverage for building envelope defects (roof, walls, windows, doors), and 10 years coverage for structural defects. This warranty must be provided by a licensed home builder through an approved third-party warranty provider. The warranty is attached to the home (not the builder-owner relationship), so it transfers with the property when the home is sold.
Do all new homes in BC come with a statutory warranty?
Almost all new homes in BC must come with the 2-5-10 warranty under the Homeowner Protection Act. There are limited exemptions: owner-builders (people building their own home to live in themselves) are exempt, but they face significant restrictions on selling the home — they cannot sell the home for 10 years without disclosure and buyer consent, and the home is not covered by the statutory warranty. When buying a new home in BC, always verify the warranty status through BC Housing's owner-builder registry.
What does the 2-year materials and labour warranty cover?
The 2-year materials and labour warranty covers defects in materials and labour for the entire home, including plumbing, heating, ventilation, air conditioning, and electrical systems. Specific items: defects in materials and labour (1 year), defects in plumbing/heating/electrical/ventilation (1 year), and building envelope defects beyond 1 year extend to the 5-year building envelope coverage. The 2-year coverage starts from the possession date, not the construction date.
What is an owner-builder home and what are the disclosure requirements?
An owner-builder is a person who builds a home themselves (without a licensed contractor) for their own personal use. Owner-builders in BC are registered with BC Housing and exempt from the licensed builder requirement, but their home has no statutory warranty. If an owner-builder sells within 10 years of receiving an owner-builder authorization, they must: disclose that the home was built as owner-builder, disclose the lack of warranty coverage, and obtain the buyer's written acknowledgment. Buyers of owner-builder homes take on the risk of construction defects without the protection of the 2-5-10 warranty.
How does a homeowner make a warranty claim in BC?
To make a warranty claim in BC: (1) Identify the warranty provider (e.g., Travelers, Homewise, WBI, Pacific Home Warranty) from the home's warranty documentation; (2) File a written claim with the warranty provider, describing the defect and when discovered; (3) The warranty provider assigns an inspector; (4) If the defect is covered, repairs are arranged through the builder or warranty-funded contractor; (5) If disputed, the warranty provider's resolution process and ultimately binding arbitration applies. Claims must be filed within the applicable coverage period — missing the deadline can void the claim.
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