Definition : Guarantee plan for new residential buildings - Compulsory Guarantee plan

A guarantee plan offering a guarantee on brand new buildings which are constituted of single family homes (single, semi-detached or townhouses) and of residential towers comprising, at the most, four superimposed private portions, without taking into account (in the computation of these four portions) the private portions for parking and storage.

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L’inspection préréception constitue une étape incontournable au moment d’acquérir une propriété neuve. Réalisée de manière rigoureuse et consciencieuse, il s’agit d’une excellente manière de protéger les acheteurs en cas de pépin. Nous vous présenterons dans cette chronique ce que les acheteurs doivent savoir sur l’inspection préréception de la partie privative et sur l’inspection préréception des parties communes de leur immeuble détenu en copropriété divise. Dans le marché de la copropriété neuve, le plan de garantie obligatoire administré par GCR couvre les immeubles détenus en copropriété divise de quatre unités superposées ou moins ainsi que les maisons unifamiliales isolées, jumelées ou en rangées détenues en copropriété divise. Les « tours à condos » ne sont toutefois pas couvertes par le plan de garantie obligatoire.
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La Cour supérieure du Québec a rendu jugement, le 25 janvier 2022, concernant le champ d’application du Règlement sur le plan de garantie des bâtiments résidentiels neufs, lorsqu’il prévoit, à l’article 2 (1) 2 b), que le plan de garantie obligatoire s’applique, en matière de copropriété divise principalement résidentielle, entre autres à « un bâtiment multifamilial comprenant au plus quatre (4) parties privatives superposées, sans tenir compte, dans le calcul de ces quatre (4) parties, des espaces privatifs dont la destination est le stationnement ou le rangement ».  
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The Regulation respecting the guarantee plan for new residential buildings regulates the liability of the contractor (developer) for any problem related to the quality of the construction work. In this regard, this regulation has provided for a specific protection regime for divided co-ownership. Whether it is a private or common portion, a co-owner or the syndicate of co-ownership is entitled to ask the contractor or the administrator of the guarantee plan, namely the Residential Construction Guarantee (GCR), to carry out this work, at any time during the term of the protections.  
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In 1999, the Government of Quebec introduced a Regulation respecting the guarantee plan for new residential buildings to protect the owners of new homes and certain condominiums. This regulation, prepared in the wake of the government guidelines proposed at the Summit on the Construction Industry in Quebec in the fall of 1993, was intended to respond to consumers' concerns about the too often dubious quality of construction in the residential sector and the many frustrations they experienced while trying to assert their rights. The implementation of this regulation is the responsibility of the the Régie du Bâtiment du Québec (RBQ). Its mandatory nature distinguishes it from optional guarantee plan offered on the market.  A look at the different facets of this new home warranty plan:
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Until December 31, 2014, the mandatory warranty plan was administered by various organizations associated with the builders' associations, namely The APCHQ's New Home Warranty, The Abritât Guarantee Inc. and Qualité Habitation. In order to eliminate any appearance of conflict of interest, the Regulation respecting the guarantee plan for new residential buildings has been amended. Thus, the government constituted a regulatory framework allowing the creation of a new single joint body in this area, which would be made up, in part, of as many consumer representatives as manufacturers.  
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July 27th 2021 - Divided co‑ownership is a housing type that has become popular in Quebec in recent years. If you’re thinking about buying a new condo—undoubtedly a significant milestone in your life—you’ll find helpful tips in this article on choosing the right contractor.  
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Since last fall, work to complete the construction of our building has been stopped, while buyers of the top floor units were supposed to move in in December.  Question: Faced with the refusal of a developer or builder to complete the construction of the building, can the syndicate of co-ownership or any co-owner act in any way to either compel the builder to complete the work or obtain compensation?
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23 juin 2020 — Les consommateurs bénéficieront d’une protection supplémentaire lorsqu’ils achèteront un condo, à la condition que le bâtiment qui l’abrite soit construit par un entrepreneur accrédité par Garantie de construction résidentielle (GCR). Cette garantie couvre entre autres les bâtiments comprenant quatre unités résidentielles superposées ou moins.
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Parking spaces qualified as private portions are commonplace in divided co-ownership. This special legal status is attributed to them by the declaration of co-ownership, which designates them as fractions in the section devoted to the description of the fractions. Like an apartment held in co-ownership, all these spaces have a unique lot number, along with a relative value, and a share. Their owners may, at a general meeting of co-owners, prevail themselves of the votes attached thereto. These votes are added, as the case may be, to those they have for their apartment
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The Guarantee Plan for New Residential Buildings differs from the private guarantee plans offered on the market by the nature of the guarantees offered and the mechanisms for asserting its rights. In this regard, the terms and conditions are set out in the the Regulation respecting the guarantee plan for new residential buildings, which is the responsibility of the Régie du Bâtiment du Québec (RBQ). Finally, unlike private guarantee plans, any purchaser of a building covered by this plan automatically benefits from it. As this is a system aimed at the minimum protection of consumers'rights, consumers cannot waive this mandatory guarantee, even if they sign a document to that effect.
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When the sale concerns a fraction of a divided co-ownership of a residential immovable, the preliminary contract must be accompanied, at the time of its signature, by certain documents (such as forming with it an indivisible whole). This includes the information note on the essential characteristics of the project, whether it is a new co-ownership or under construction, or a building that has undergone major renovations to the point of now being considered new. In addition, the contract of guarantee will complete the preliminary contract. It concerns immovables or projects subject to the Regulation respecting the guarantee plan for new residential buildings, i.e. those with no more than 4 private portions stacked one above the other (apartments).
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Building a condominium requires major investments on the part of a developer. This is the reason why a down payment will be required upon signing the preliminary contract for the desired condo unit. The Civil Code of Quebec provides that “any amount paid on the occasion of a promise of sale is presumed to be a deposit on account of the price, unless otherwise stipulated in the contract”.This down payment, which represents the first installment to the seller, varies according to the unit’s total price. Bill 16 introduced provisions to protect down payments made by residential buyers to developers and builders of divided co-ownerships.    
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I am the co-owner of a new condo. Other owners and I have recently discovered cracks in the foundation of the building, as well as water infiltration in the garage. The promoter is mute, and we have not yet transferred the administration. Question: Should we refuse to elect our first Board of Directors, until the issues identified have been corrected? And should I sell immediately before other major problems arise?
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