Indeed, Garantie de construction residentialielle (GCR), the organization mandated by the Government of Quebec since January 1, 2015 to administer the mandatory guarantee plan for new homes, reminds us: the law protects down payments up to a maximum amount. of $ 50,000.
“Our message regarding down payments is as follows: if you decide to pay your contractor a down payment, never exceed the maximum amount covered,” explains François William Simard, Vice-President, Communications and Partner Relations at GCR.
Precautions to be taken
Before signing a promise to purchase and paying a down payment, you must take precautions. First, you must make sure that the contractor you are dealing with is accredited with GCR, a legal obligation, and that he holds a valid license from the Régie du bâtiment du Québec (RBQ). How to verify it? It’s easy. All you need to do is consult the Directory of Accredited Contractors, an online tool developed by GCR. Also make sure that the company has registered the real estate project you plan to live in. With just a few clicks, you will know if your contractor is in good standing and if your future property is covered by the compulsory guarantee plan.
“It is also important to have written proof of the payment of the deposit, which must be signed by the company and by the buyer, recommends François-William Simard. Evidence such as a deposit certificate signed by the company and the buyer, but also a copy of cashed checks or bank statements, receipts or a receipt. Without written proof, the refund could not be made. ”
While the practice of requiring a deposit is legal and fairly common, it is not mandatory. If you agree to pay one, your money will be protected as long as the company carrying out the construction is accredited and you do not exceed the maximum amount protected by law. And be careful if a contractor charges more than $ 50,000. Otherwise, your dream might turn into a nightmare.
“It’s easy to fall in love with a project when you think you have found the property you are looking for. We can then lower our guard to engage sometimes too quickly without making the necessary checks. Vigilance is always required in a project as important as buying a new home, ”concludes Mr. Simard.
TO KNOW MORE
Directory of GCR accredited companies: www.garantiegcr.com/fr/repertoire-des-entreprises-accreditees
This page was produced by the advertising department of Newspaper in collaboration with Garantie de construction residential.