The guarantee on new residential buildings... more than just on the building!

Since 1999, the Regulation on the guarantee plan for new residential buildings¹ provides for the obligation of warranty coverage on a large number of new home constructions². Its purpose is to offer consumers additional protection to the legal quality warranty³ provided for in the Civil Code of Quebec. But did you know that a warranty plan for new residential buildings covers more than just the building?

From the outset, the concept of building is defined in the regulation as being “the building itself, including the installations and equipment necessary for its use, i.e. the artesian well, the connections to municipal or government services, the septic tank and its purification field and the French drain.⁴ ”. The warranty therefore does not only cover the building itself, but also certain ancillary equipment.

By giving a broad interpretation to the concept of building, the legislator extends warranty coverage to certain immovable property by attachment (artesian well, connection, septic tank, drain field and French drain), which all meet the criteria of immobilization within the meaning of article 903 of the Civil Code of Quebec arising from case law.⁵ , namely:

• The presence of a building;
• An attachment or a material meeting linking the property to the building;
• The preservation of the individuality of the movable asset and the absence of incorporation;
• A permanent property (a permanent installation);
• A function ensuring the usefulness of the building.

It should also be noted that this broad interpretation of the concept of building is taken up by arbitral jurisprudence, which tends to include property buildings by attachment sold by the contractor to the beneficiaries to cover the guarantee plan for new residential buildings. For example, a contractor was forced to guarantee the mechanical components of a ventilation system under the regulation. This is notwithstanding the duration of the manufacturer's warranty for this purpose, since the beneficiary is entitled to expect a reasonable useful life of the goods for which he paid and, in addition, since the contractor has an obligation of result.

This means that elements such as a water heater, a heat pump, a heat pump, an air conditioner and a ventilation system are guaranteed by the contractor for a period provided for in the regulation, which generally exceeds the duration of the warranties of manufacturers in the industry. The wise contractor will therefore have every interest in carefully selecting its subcontractors and suppliers in order to avoid having to pay the replacement or repair costs himself in the event of a justified complaint.

In short, under the regulations⁶, the contractor is obliged to guarantee not only the building, but also the quality of the goods buildings by attachment necessary for the use of the building he is selling with it, all conditional on compliance with the claim's eligibility deadlines and on the fact that the beneficiary, through his actions or inaction, did not cause the impairment. It's much more than just a guarantee for the building!

DID YOU KNOW THAT?
“Each building covered by the warranty must be inspected prior to acceptance. This inspection must be carried out jointly by the contractor and the beneficiary on the basis of a pre-established list of elements to be verified provided by the administrator and adapted to each category of buildings. The beneficiary may be assisted by a person of his choice.” — Article 17, Regulation on the guarantee plan for new residential buildings.

¹ RRQ, c B-1.1, r 8
² See article 2 of the Regulation respecting the guarantee plan for new residential buildings for a list of the buildings concerned.
³ 1726 and 2103 C.C.Q.
⁴ Article 1, Regulation on the guarantee plan for new residential buildings
⁵ Axor Construction Canada Ltd. v. 3099-2200 Quebec Inc., [2002] R.D.I. 26 (C.A.)
⁶ Syndicat de la Gondola et Me-Ra Développements inc., (CCAC), S13-032101-NP

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Consult the source publication