According to the provisions of the Regulation on the guarantee plan for new residential buildings, any lawsuit based on this Regulation must be settled before a mediator or decided by an arbitrator.
However, are arbitration and mediation the only means provided for the beneficiary of the Guarantee Plan? Do you have to go to arbitration? Can you submit your dispute directly to the courts? Is there an order of priority?
Recourse to arbitration under the Regulation does not exclude other recourse available to the entrepreneur and the buyer-beneficiary under the Civil Code of Quebec.
At any time before receiving an arbitrator's decision, you may decide to continue following the procedure set out in the Regulation for mediation/arbitration or to direct your action to the courts.
A denunciation, a recourse, and even a decision of the administrator of the Residential Guarantee Plan (GCR) does not constitute a renunciation of the right of the buyer-beneficiary to appeal to the courts. But beware, if you have already started the arbitration procedure, an appeal to the courts becomes more complicated.
Arbitration provided for in the Regulation aims to propose a mode of dispute resolution which is faster and less costly than recourse to the courts. The Regulations and the related remedies are therefore complementary to the regime provided for in the Civil Code of Quebec and the Code of Civil Procedure.
The decision is yours! We encourage you to educate yourself about the ins and outs of each type of appeal to make an informed decision.