New Condo Problems in BC, Canada: What Every Buyer Should Know About Defects, Repairs, and Warranties

What to Do If Your New BC Condo Has Major Issues Like Broken Elevators or Toilets

Buying a brand-new condominium in British Columbia (BC) can be an exciting milestone—but what happens if, shortly after moving in, you face serious issues such as a non-functional elevator that’s been out for weeks, or toilets and plumbing that don’t fully work?

While BC offers solid protections and insurance coverage for new homeowners, navigating these systems can be complicated. Here’s a clear guide to help buyers understand their rights, coverage, and next steps.

BC Real Estate Laws and Buyer Protections

1. Home Warranty Insurance (2-5-10 Coverage)

All newly built homes in BC must be constructed by a licensed builder and include third-party home warranty insurance under the Homeowner Protection Act. This coverage provides:

2 years for defects in materials, labor, and building systems
5 years for defects in the building envelope (e.g., water penetration)
10 years for major structural defects

This warranty ensures that builders remain responsible for construction defects after the sale. However, while it covers the cost of repairs, it does not typically compensate homeowners for inconvenience, hotel stays, or temporary relocation due to malfunctioning amenities.

2. Strata Corporation Responsibilities

In condominium living, the strata corporation (similar to a homeowners association) is responsible for maintaining common areas, including elevators and shared plumbing systems.

If an elevator remains out of service for more than 48 hours, the strata must report the issue under the Technical Standards and Safety Act. Prolonged outages are taken seriously, especially when they affect accessibility or safety for residents. Failure to maintain or repair these systems may expose the strata to penalties or legal action.

3. Legal Rights and Remedies

Homeowners have several paths to resolution:

Warranty Claims: File a claim under the 2-5-10 warranty for construction-related defects.
Strata Complaint: Request the strata council to address maintenance or repair delays.
Legal Action: If issues persist, consulting a real estate or strata lawyer can help enforce obligations.

While the Residential Tenancy Act applies primarily to rentals, it reflects a general legal expectation in BC housing law—property owners and strata corporations must maintain health and safety standards.

Insurance Options for BC Condo Buyers

1. New Home Warranty Insurance

This mandatory insurance covers construction defects and workmanship issues. It’s included automatically when purchasing a new home, so no additional purchase is required. However, it doesn’t pay for personal inconvenience, lost rent, or hotel accommodations.

2. Condo Owner Insurance (Apartment Insurance)

Condo owner insurance covers your personal belongings and liability, and may include Additional Living Expenses (ALE) coverage. ALE helps pay for temporary accommodation if your home becomes uninhabitable due to a covered event—such as fire or flood.

However, ALE usually does not apply to maintenance problems or construction defects like non-working elevators or plumbing failures unless they cause direct physical damage.

3. Loss Assessment Coverage

If your strata issues a special assessment to cover large repair costs exceeding insurance limits, loss assessment coverage can help individual owners pay their share. This coverage is optional but valuable for major common-area repairs.

Real-World Scenario: Broken Elevator and Faulty Bathroom Fixtures

In the case of a newly built condo where:

The elevator is out of service for more than a month, and
Bathroom fixtures are not functioning properly,

here’s how coverage and responsibilities typically break down:

The Strata Corporation must maintain and promptly repair the elevator.
Home Warranty Insurance should cover any construction or installation defects in both the elevator system and bathroom fixtures.
Condo Owner Insurance may not compensate for inconvenience unless your policy includes ALE coverage for uninhabitable conditions caused by an insured peril.
Legal Recourse may be necessary if warranty claims or strata actions are delayed.

At present, there’s no dedicated insurance policy in BC that compensates owners purely for inconvenience or loss of comfort due to delayed repairs—unless a legal claim establishes negligence or breach of duty.

Key Takeaway

BC homeowners enjoy strong protection against construction defects and strata negligence, but these systems primarily cover repairs, not personal inconvenience.

If you’re buying a new condo:

Understand your 2-5-10 warranty coverage and how to file claims.
Review your condo insurance carefully, especially the Additional Living Expenses section.
Stay proactive with your strata council and document all communications regarding maintenance delays.
Seek legal advice if essential services remain unrepaired for extended periods.

Ensuring your investment and comfort requires knowing your rights—and using every available protection under BC law.

This article is based on information from the Homeowner Protection Act, BC strata regulations, and leading insurance resources as of 2025. Always conduct your own research or consult a legal professional for specific advice.

Disclaimer

These findings are based on the Homeowner Protection Act, BC strata regulations, and standard condo insurance policies as of 2025. The information provided is for general reference only and should not be considered legal advice. Always verify current regulations or consult a real estate or legal professional for advice specific to your situation.