WARRANTY CONTRACT
 
**IMPORTANT NOTICE**

The APCHQ must receive the coverage application at the latest two (2) years following the hand over date, otherwise it will be considered null. Building hand over is defined hereunder in this warranty contract.
 
1. DEFINITIONS
In regards to the Garantie prolongée 10 ans, the following terms will be interpreted as follow:
  • APCHQ
    The Association Provinciale des Constructeurs d'Habitations du Québec inc. acting in this contract in regards to its Garantie prolongée 10 ans program.

  • Building
    The building as such including the installations and equipment necessary to its use, particularly the French drain, artesian well and wastewater system. Apart from the foregoing, this definition expressly excludes any construction located outside the building's perimeter, including but without being limited to revetment walls, balconies and terraces not fixed permanently to the building's foundations, paths and sidewalks, and asphalt or paving bricks pavements.

  • Beneficiary
    The natural or artificial person or company who owns the building and entered into this warranty contract.

    Should the building be sold during the term of the warranty, the new buyer will be able to qualify as beneficiary for the remaining warranty period.

  • Coverage Fees
    The sum of money that must be paid to the APCHQ by the beneficiary in accordance with the Garantie prolongée 10 ans offered in this contract.

  • Building Hand over
    The hand over of the building as recorded on the hand over certificate signed by the original buyer upon the handing over of the new building by the builder.

  • Defect in construction
    A major defect in the design, construction or production of the building, including a soil of unfavourable nature, in accordance with article 2118 of the Civil Code of Québec.
2. ELIGIBILITY
The following buildings are covered by the Garantie prolongée 10 ans if they are mainly for residential purposes and not subject to condominium laws:
  1. a) A single family detached dwelling, semi detached dwelling or row dwelling.
  2. b) A multiple family dwelling, from a duplex to a quintuplex.
3. PRELIMINARY CONDITIONS
In order to be eligible to the Garantie prolongée 10 ans, the building must fulfil the following conditions:
  1. The building must have been registered with La Garantie des bâtiments résidentiels neufs de l'APCHQ inc..
  2. The building must still be in its original condition, having undergone no alterations or transformations affecting its structure.
  3. Should the APCHQ request it, the building must undergo a preliminary inspection by a construction professional designated by the APCHQ prior to the approval of the coverage request.
Should one of the aforementioned conditions not be fulfilled or should a false declaration be made by the beneficiary in regards to the condition of the building, as stated in the foregoing (b) clause, this warranty contract will be considered null.
4. WARRANTY STATEMENT
Following payment of the coverage fees and in the event the APCHQ approves, at its own discretion, the written coverage application duly completed and signed by the beneficiary, the APCHQ agrees to repair the defect in construction of the building discovered and reported in writing by the beneficiary to the APCHQ during the warranty term, without prejudice to the restrictions, conditions and modalities stipulated in this contract.

Notwithstanding the foregoing, the APCHQ has the right to compensate the beneficiary in cash in regards to the work required to repair the building's defect in construction. Should that be the case, the APCHQ will estimate the work related costs and pay the pertaining amount to the beneficiary, who will then be responsible for the undertaking of the work.
5. WARRANTY TERM
The term of the Garantie prolongée 10 ans offered to the beneficiary in this contract will begin to run on the first day of the sixth (6) year following the hand over date to the original buyer and end on the last day of the tenth (10) year following the hand over date to the original buyer. For the purpose of this warranty contract, the last day of the tenth (10) year following the hand over date to the original buyer represents the final date of effect of the warranty period, date after which no claim for a defect in construction will be accepted by the Garantie prolongée 10 ans.

Furthermore, no claim pertaining to this warranty contract will be accepted as long as the building is covered and eligible to the 5 year warranty for defects in construction (major defects) offered by La Garantie des bâtiments résidentiels neufs de l'APCHQ inc.
6. RESTRICTIONS
Following the discovery of a defect in construction, the APCHQ's liability in regards to the Garantie prolongée 10 ans will be restricted to an amount equal to the price indicated in the contract entered into between the original buyer and the builder, without ever exceeding the sum of $200 000.
7. REPORTING TO THE APCHQ
Without prejudice to provisions 4 and 5 of this warranty contract, the beneficiary must, in the event of the discovery of a defect in construction during the warranty period, report the defect in writing to the APCHQ, under penalty of contract nullity, within a reasonable time that must not exceed six (6) months following the discovery. Should the defect in construction appear gradually, the delay will start running on the day of the first appearance.
8. OBLIGATIONS OF THE BENEFICIARY
In order to obtain and maintain the coverage offered in this warranty contract, the beneficiary agrees to fulfil the following obligations:
  1. Fill out, sign and send the Garantie prolongée 10 ans coverage application form to the APCHQ in the aforementioned delay.
  2. Pay to the APCHQ the coverage fees pertaining to the building identified in the Garantie prolongée 10 ans's coverage application in accordance with the modalities set by the APCHQ.
  3. Fill out and sign all other documents required for the application and administration of the Garantie prolongée 10 ans.
  4. Collaborate with representatives of the APCHQ for the implementation of the warranty.
  5. Ensure access to the building for every inspection or visit made by a construction professional designated by the APCHQ.
  6. Use the building mainly for residential purposes.
  7. Take the necessary measures to maintain and preserve the building.
9. EXCEPTIONS
The following events and situations are expressly excluded from the coverage offered by the Garantie prolongée 10 ans in this contract and, as such, are in no way the responsibility of the APCHQ:
  1. Defects in construction resulting from removals, alterations or additions made to the building by the beneficiary or a third party other than the builder.
  2. Building or foundation deterioration caused by the roots of existing trees on the beneficiary's property or a neighbouring property.
  3. Building deterioration due to a fault on the beneficiary' part such as inappropriate use or maintenance of the building, including damages caused by too much humidity or condensation originating from inadequate ventilation in the building.
  4. Building deterioration due to the presence of a pool, spa or sauna installed inside or outside the building.
  5. Repair of damages caused to the building by the accumulation of snow or ice on the roof.
  6. Repair of damages caused by the collapse of the land outside the building perimeter.
  7. Repair of any damages caused by a superior force, such as but without being limited to lightning, flooding, earthquakes or exceptional climatic conditions.
  8. Repair of damages caused by contaminated soils, including the replacement of soils.
  9. Repair of damages caused by the presence of paint rock in the soil or in the installations and equipment necessary for the use of the building.
  10. Compensation for any damages caused by the presence, in the building or the soil, of pollutants or contaminants under any form whatsoever, may they be solid, liquid or gaseous wastes, micro organisms, odours, heat, sounds, vibrations, radiation or any combination of these elements.
  11. Compensation for any damages caused directly or indirectly by a defect in construction such as but without being limited to any injury to the person or property as well as any damages caused to a building other than the one covered by this warranty contract.
10. DECISION MAKING PROCESS
Should a defect in construction be discovered during the warranty term, the decision making process will be as follow:
  1. Within the warranty term and in accordance with provision 7 of this contract, the beneficiary must report the defect in construction discovered in writing to the APCHQ.
  2. When sending its written report to the APCHQ, the beneficiary must pay fees of $100 to open a file. The beneficiary will be reimbursed this sum if the decision concerning his claim is entirely or in part favourable.
  3. Within fifteen (15) days following receipt of the written report, the APCHQ will designate a construction professional to inspect the building owned by the beneficiary, submit it to an expert if need be, and decide on the cogency of the claim.
  4. Within twenty (20) days following the building inspection or, if need be, receipt of the expertise report, the designated construction professional will submit a written decision concerning the beneficiary's claim.
  5. Should the decision be favourable to the beneficiary, the APCHQ will take charge of the repair work by mainly proceeding to a competitive tendering to hire a contractor.
11. ARBITRAL PROCEEDINGS
Should the beneficiary be unsatisfied with the decision given concerning his claim, he can request arbitration to solve the dispute. The arbitration tribunal will consist of one arbitrator designated by both parties.

Arbitration costs will be shared between the beneficiary and the APCHQ as follow:
    -  The first $500 will be paid by the beneficiary.
    -  The balance will be paid by the APCHQ.

Each party will be responsible for its expenses incurred in regards to the arbitration proceedings.

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