There are two different types of guarantee plans: a compulsory guarantee plan for new residential buildings, governed by the Regulation respecting the guarantee plan for new residential buildings, and optional guarantee plans which cover, in certain cases, specific types of buildings.
The object of these plans is to give limited financial protection, to consumers and syndicates of co-ownership, when the developer or contractor does not execute its legal and contractual obligations. These plans involve three parties: the consumer or the syndicate of co-ownership, the contractor and a body acting as a guarantor. The latter, designated as the administrator of the guarantee plan, has the mandate of accrediting the contractor and of being the guarantor of his obligations, in accordance with the terms and conditions and in the manner provided in the Guarantee Plan.
To obtain more information on this subject, consult the sub-files hereunder. They will help you to understand them: