If you’re planning on buying a new house or condo, there is one key aspect of your purchase you must understand: the Guarantee Plan for New Residential Buildings, also called the new home guarantee. Imagine: a coverage plan that fully protects your new home against possible worries and unforeseen circumstances. This is exactly what the plan offers; however, it does have its limits.
In Québec, this guarantee plan is overseen by the Régie du bâtiment du Québec (RBQ) in accordance with the Regulation Respecting the Guarantee Plan for New Residential Buildings (RGPRB). This regulation contains a series of legal protections intended to ensure the quality of new residential builds. This guarantee aims to provide adequate protection to hew home buyers against construction defects. If your contractor is accredited, it means that they have had to adhere to certain standards. How reassuring!
Why Is This So Important?
Buying a house is a major investment, both financially and emotionally. The Guarantee Plan ensures peace of mind by providing protection against potential construction and structural defects. Good to know: it can be transferred from one homeowner to another while it’s still in effect.
What Is Actually Covered?
This protection extends to, among other things, deposits paid to the contractor (up to $50,000) as well as construction defects if reported before the stated deadline. Construction defects fall within three main categories:
Major construction defects: If serious problems arise, such as structural cracks or large water leaks, the Guarantee Plan can be used to pay for repair costs.
Poor workmanship: The Guarantee Plan includes some types of imperfection. For example, squeaky doors or ill-fitting windows may be covered under certain conditions.
Correct functioning: This part of the guarantee pertains to the residence’s essential components, such as the plumbing, electrical wiring and heating system. If one of these malfunctions after acquisition, the Guarantee Plan may apply.
Nonetheless, it is important to note that the Guarantee Plan for New Residential Buildings doesn’t cover issues due to normal wear and tear, altered components, misuse or neglect.
How Long Are You Protected?
The deadline varies according to the type of issue. A one-year protection is offered for fixing defects that were existing but non-apparent upon taking possession. When it comes to repairing latent defects, the protection last three years. The Guarantee Plan includes, moreover, a five-year guarantee (following the end of work) for faulty design, construction, or production, and the unfavourable nature of the ground. Homeowners must report all defects within a reasonable amount of time.
How Do You Apply?
You are automatically protected if you purchase a house or condo constructed by a contractor accredited by the Garantie de construction résidentielle (GCR). A register of accredited contractors is available.
How to Proceed in the Event of a Problem?
Should the contractor fail to fulfil their obligations, homeowners have access to different means of recourse. The first step is to report any fault you have discovered or any dissatisfaction to the contractor. This gives them the opportunity to resolve the issue.
You can equally fill a complaint and claim form. Be aware that if the problems are covered by the Guarantee Plan, the contractors are required to carry out the corrective work and bear the related costs.
The Guarantee Plan for New Residential Buildings is far more than a simple formality. It constitutes a lifeline that will help you navigate the sometime turbulent waters of real estate acquisition with confidence. By opting for a new home with a strong guarantee, you will be investing both in a property and in your own peace of mind. Additionally, you must not hesitate to ask questions to the real estate broker who oversaw your new house’s or condo’s sale. They can offer you advice on how you can make the best use of your guarantee.