Definition : Contract of guarantee

A compulsory document under the Law to complete the preliminary contract for those residential projects governed by the “Règlement sur le plan de garantie des bâtiments résidentiels neufs” (Regulation respecting the Guarantee Plan for New Residential Buildings), being those comprising four private residential portions superimposed or less. The contract of guarantee describes the details of the protections offered, the claim’s procedure, and the recourses available in case of a problem with a contractor.

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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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The Civil Code provides, in specific cases, that it is compulsory to annex to the preliminary contract   documents which become an integral part of the contract.
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