~~

THE OCEAN is a close friend at Panorama Park in Deep Cove,

supervised area. (Terry Peters photo)

| Buyers of modest homes Newsstand

get more for t

’ According to Terry Smith,

Managing Director of the
New Home. Warranty
Program of B.C. and the
Yukon, buyers of new homes
in the average price range
are frequently protecting
their investment better than
those who build luxurious
costly houses, ;

Smith’s reasoning is that
average priced homes are
more likely to be covered by
the Warranty Program, and
this, he feels, gives the buyer
considerably more security
and assurance of value.

“Builders of average
priced homes usually secure

their funds through channels
such as the CMHC,” said
Smith. “In 1978, the CMHC,
along with other major
lending institutions, ruled,
that it would only fund
builders who were members
of the program.

“Therefore, all CMHC
homes are enrolled in the
program and buyers of these
homes are protected -
automatically and at no
additional cost to them.”

As a result of this," the
buyers of these homes enjoy
the protective features of the
program:

heir mone

1) Protection of deposit
monies to a maximum of
$5,000.

2) Guarantee of | the
builder's warranty of
workmanship and materials
for the first year after
building is completed.

3) Protection for four
years thereafter against
major structural defects to a
maximum of $20,000.

4) Conciliation, should
there be a dispute between
the new home buyer and the
builder during his one year
warranty. |

‘ Insofar as builders of the
large, very expensive homes

are concerned, they. often
secure their mortgage funds
from outside the . normal
channels and, although there
is an indication of change,
these unconventional high

ratio mortgage lenders do

not necessarily require.
builders to belong to the
Warranty Program.

“We're not saying

everyone should buy a less
expensive home,” said
Smith, “but we are saying
luxury home buyers would
do well to question their
builder about the protection
he offers if he is not a
program member.”

locations

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