Unreported heat pump installations can land strata in hot water
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Dear Tony:
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We have an issue with the building exterior on one of our townhouses. The unit is experiencing water getting into the wall. We filed a warranty claim but have received a letter back denying the claim because the wall was altered with a heat pump installation. The installation was completed by a local company and authorized by our strata council. Unfortunately, we omitted consulting with the warranty provider. Do we have any recourse to challenge the claim? The area affected was not altered and our five-year warranty is about to expire.
— Candice M.
Dear Candice:
The mandatory warranty on new construction in British Columbia covers a 2-5-10 cycle. The first two-year period essentially covers everything in the complex as part of the buildings and the period varies from 18 to 24 months. The five year building envelope coverage includes both the exterior cladding, doors, windows and roofing, and the 10-year portion is for the structure, which includes underground parking garages if they form part of the building structure.
The warranty provider is an assurance that claims will be investigated and resolved. The owner/developer will generally address the defects, if any. They must report the details of the warranty repair in writing to the strata corporation.
There is a mandatory mediation process under the Homeowner Protection Act if the strata corporation exhausts all other avenues, but what you require at this time is a certified report from a qualified engineer verifying the damages and claim. Submit this to the warranty provider in the written form they specify in the warranty contract. If you are unsuccessful, the legal avenue is your next step, which can eventually lead to mediation.
Alterations to warranted components without the consent of the warranty provider can lead to exclusions or voiding of warranties. The wave of unauthorized heat pump installations and conversions is increasing conflict within communities. Installers frequently suggest the owners do not require detailed specifications for the installations.
All strata councils should insist on all details of the installations, how they are installed, managed, who is responsible for all related costs, and especially confirmation of warranty conditions if your building is 10 years or less or has recently undergone a major envelope remediation.
There are several extensive guides now available for strata councils that provide direction on heat pump installations and understanding the impact of the changes or conversions. New building strata councils are advised to obtain warranty documents and understand the expiry dates for claims.
Your warranty has a value of $100,000 per unit, and if not reported or captured it easily expires, unnecessarily leaving the cost on the owners in your strata corporation. Warranty inspections are recommended before the periods expire to identify defects. A small cost to secure your investments.