Selling a New Duplex in BC: Warranty, Licensing and GST
What buyers of a new duplex home are entitled to, and the federal rebate that can make your units easier to sell.
A new duplex home sold in BC must carry 2-5-10 home warranty insurance from a BC Housing licensed builder. Buyers get 12 months on most materials and labour, 24 months on major systems, 5 years on the building envelope and 10 years on structure. First-time buyers may also recover up to $50,000 of GST on homes up to $1.5 million.
What warranty does a buyer get?
New homes built by a BC Housing Licensed Residential Builder must carry third-party home warranty insurance, known as 2-5-10 coverage: materials and labour for 12 months on most defects (24 months for major systems such as electrical, plumbing and heating), 5 years on the building envelope, including water penetration, and 10 years on structure.
For strata buildings, the common property gets 15 months of materials and labour coverage. The warranty belongs to the home, so it passes to each new owner within the coverage periods. That is a real selling point for a new duplex compared with an older house.
Does the builder need a licence?
Yes. In BC, new homes built for sale must be built by a Licensed Residential Builder registered with BC Housing, and covered by third-party home warranty insurance. Buyers can check a builder and a home through BC Housing’s registry.
Owner-builders are the exception. An owner who builds under an owner-builder authorization isn’t required to buy warranty insurance, but stays personally responsible for defects for 10 years, and later buyers deal with them directly. Most buyers, and many lenders, will want the insured version.
Can a buyer get the GST back?
Often, if they are a first-time buyer. The federal First-Time Home Buyers’ GST Rebate returns up to $50,000 of the GST paid on a new home bought from a builder:
- 100% of the GST on a new home valued up to $1 million
- A partial rebate from $1 million up to $1.5 million. A $1.25 million home, for example, gets 50%, or up to $25,000
- No rebate at $1.5 million or more
- The purchase agreement must be signed with the builder on or after March 20, 2025, and before 2031
- At least one buyer must be a first-time buyer, buying the home as their main residence and the first person to live in it
For a duplex half priced near or under $1.5 million, that can make a real difference to buyers, and it is worth knowing when you set your price. The older GST/HST New Housing Rebate still exists but phases out at lower prices, so it rarely applies to new homes in Vancouver. Buyers should confirm their own eligibility with the CRA or an accountant.
What has to happen before you can sell each half?
Each half has to be its own legal title. For a new duplex that normally means a strata plan registered at the Land Title Office after construction, so we plan the building and the strata plan together from the start. Suites stay on the same title as their half, so a duplex with suites sells as two homes, each with rental income.
Common Questions
Frequently Asked Questions
What does 2-5-10 warranty mean in BC?
12 months on most materials and labour defects (24 months on major systems such as electrical, plumbing and heating), 5 years on the building envelope including water penetration, and 10 years on structure.
Is a new duplex eligible for the first-time buyer GST rebate?
A new duplex home bought from a builder can be, if at least one buyer is a first-time buyer who will live in it, the agreement is signed between March 20, 2025 and the end of 2030, and the home is valued under $1.5 million.
Do I need a licensed builder to sell my duplex?
New homes built for sale in BC must be built by a BC Housing Licensed Residential Builder and covered by home warranty insurance.
Next Step
Find out what your lot allows
Every project starts with a feasibility study. No obligation, no pressure, and a reply within one business day.