Introduction

The Guarantee Plan for New Residential Buildings is the document which ensures that the contractor adequately performs all the points provided for in the Regulation on the Guarantee Plan for New Residential Buildings.

Acquiring a home is not only a dream come true, but also a huge investment. To avoid unpleasant surprises and to enjoy peace of mind, buyers are increasingly turning to new buildings when acquiring a house.

We usually assume that a “new” building meets all legal standards and that it is in perfect condition. However, even a new building can sometimes have imperfections or construction defects and the happiest moment of your life can quickly turn into a nightmare.

Poor workmanship by contractors, as well as the lack of information and preparation of buyers to deal with a situation, have increased the number of claims against contractors every year.

To counter this, the government has introduced regulations to protect buyers of new homes.

In 1999, the government adopted the first Regulation respecting the guarantee plan for new residential buildings (the "Regulation on the Guarantee Plan" or “the Regulation”), which provides clear guidelines on the rights and duties of contractors vis-à-vis the buyer-beneficiary. Subsequently, the Regulation on the Guarantee Plan went through two stages of modifications and redesigns, each time to improve it and adjust it to the current reality. The sole objective pursued from the start was to protect the interests of the purchaser of a new house.

The Guarantee Plan for New Residential Buildings is an incomparable tool that ensures the fulfillment of the contractor's legal obligations to you. As a buyer of a new house, you benefit from a mandatory legal guarantee for delivery delays or construction faults. You can enjoy this protection from the start if you follow the instructions provided by the Regulation.

For the mandatory guarantee plan to apply, the contractor who builds your home must meet two conditions: have a license from the Régie du bâtiment du Québec (with license subcategory 1.1.1 or 1.1.2, depending on the case) and be accredited by Garantie de construction résidentielle (GCR).

Also, the Regulation on the Guarantee Plan covers new buildings only. However, not all new buildings are covered. The guarantee only applies to the following building categories:

• New residential buildings not held in divided co-ownership:
• Detached, semi-detached and row-type single-family homes
• Multi-family buildings from duplex to quintuplex

• New residential buildings held in divided co-ownership:
• Detached, semi-detached and row-type single-family homes
• Multi-family building including 4 private portions stacked one above the other at the most, excluding private areas used for parking or storage
• Buildings referred to in the preceding paragraphs acquired from a trustee, municipality or mortgage lender by a contractor
• Model houses are also covered by the plan if there is a sales contract with the manufacturer or a general contractor and it includes the complete installation of the "turnkey" home.When the sales contract is concluded with the manufacturer of the prefabricated house and the installation contract with a general contractor, the installation part only will be covered by the Guarantee Plan.

When the sales contract is concluded with the manufacturer of the prefabricated house and the installation contract with a general contractor, the installation part only will be covered by the Guarantee Plan.

The Regulation respecting the guarantee plan for new residential buildings does not cover:

• The residence built by the owner on his land without using an accredited contractor
• The transformation of buildings
• Renovation of buildings (extension, construction of a garage
• Condominium buildings that have more than four superimposed private portions
• Earthwork defects when the beneficiary of the guarantee owns the land on which he has his residence built.

Note that even if you do not think you could benefit from the coverage of the guarantee plan, you can still assert your rights in relation to the above elements. Consult a lawyer or legal resource if necessary.