Is a performance bond or guarantee for a homeowner who is unhappy with the design of their new home?
British Columbia, Canada
The following excerpt is from Horga v. Travelers Insurance Company of Canada, 2019 BCCRT 983 (CanLII):
29. The respondent relies on the tribunal’s decision in Vytasek v. Cressey (Vidal) Development LLP et al, 2019 BCCRT 382, in which the tribunal said a warranty is not a performance bond or a guarantee if the homeowner is unhappy with an aspect of their new home. The respondent says the applicant’s claim for the garage drainage track constitutes a claim or new construction or “missed” work, and such claims are not covered under the warranty. However, I find the applicant’s claim stems from the uncontested pooling of water in his garage which is a claim for a defect, not for new or missed construction. However, for the following reasons I dismiss the applicant’s claim.
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