Buyers : Advice

Homebuyer Protection

Since 1991, we have paid millions of dollars in benefits to our clients under the Homebuyer Protection!

Deductibles

The buyer shall be responsible for the payment of a one hundred dollar ($100) deductible for each "event," to be deducted from the amount of the Protection or the amount of the claim, whichever is lower. Equipment and appliances included in the sale covered by the Homebuyer Protection, subject to conditions, exclusions and limitations:

1. Electricity;
2. Central heating and heat pump;
3. Plumbing (water pipes and drains) excluding, but not limited to, sinks, toilet bowls, tanks, bathtubs, fixtures, water heaters and other accessories;
4. All items listed below, on condition that they are contained on the list of inclusions in the promise to purchase in its final and accepted form, including all appendices and/or included in the deed of sale: * Central air conditioning units * Central electronic air purifiers* Central air purifiers * Permanently installed fans * Garbage disposal units * Garage door openers (motors and remote control devices) * Alarm systems (excluding damage due to failure, malfunction or faulty operation) * Kitchen stoves * Built-in ovens * Built-in dish washers * Refrigerators (excluding content) * Range hoods * Ozone generators * Heat exchangers * Built-in microwave ovens * Intercoms * Garbage compactors * Freezers (excluding content) * Washing machines * Clothes dryers * Central vacuum cleaners.

Any other equipment or appliance not included in the above list is not covered by the Protection even if it was included on the promise to purchase.

Other exclusions:
*All equipment and appliances powered by solar energy *All equipment and appliances used for commercial purposes *Electrical fixtures *Maintenance costs (parts and labour) related to heating equipment, air purifiers or other such equipment and appliances *Any and all damage of any nature other than provided for herein *All equipment and appliances which are not in good working order when the deed of sale is signed. *All equipment and appliances which are located outside of the dwelling, including those located in the common areas of a condominium.

Conditions applicable to the Homebuyer Protection

GHP guarantees all qualified buyers of a property eligible for the Homebuyer Protection, that all equipment and appliances included in the sale will function properly, subject to the following conditions:

1. This Protection applies solely to repairs resulting from sudden and accidental breakdown, despite normal use for which the equipment or appliance was intended.
2. This Protection is conditional upon the equipment and appliance being in good working order when the promise to purchase is signed.
3. The equipment and appliances must not be covered by any other guarantee or insurance.
4. The equipment and appliances must be included in the final and approved promise to purchase.
5. The equipment and appliances must be located inside the main building (except for residential heat pumps).
6. Reparable equipment and appliances must be repaired by a qualified technician and may not be replaced.
7. The choice of parts is the responsibility of GHP. Replacement parts may be new or rebuilt and may be of equal or superior quality.
8. If replacement should be deemed necessary, GHP's liability is limited to said replacement, with new, rebuilt or used parts, at the discretion of GHP, of the same type and quality. The parts may be replaced with goods of a superior quality if the beneficiary so desires and if he/she pays any costs exceeding those for which GHP is herein liable.
9. In all circumstances, GHP's liability shall be limited to the cost incurred by any informed, diligent consumer who has taken the steps necessary to obtain the best possible price for the parts, equipment and appliances, as well as the hourly rates and time required to make the repair.
10. For work required to repair or replace various equipment parts, GHP hereby agrees to restore any damaged surface to its original state, provided the cost of such restoration work falls within the limit of $1,000 per event and the aggregate limit of $5,000.
11. The buyer must advise GHP as soon as any breakdown occurs and, within two months following the event, submit the documents requested by GHP under penalty of having the claim rejected because it is late or incomplete.
12. If required, the buyer agrees and accepts to allow GHP to inspect said equipment and appliances, within thirty (30) days following the date upon which GHP was advised by La Capitale of the purchase of the property.

Important exclusions and limitations

1. All travel and labour costs will be paid by the buyer to the qualified professional for a claim that isn't covered by the Protection;
2. Preventative maintenance, leasehold improvements, renovations or any and all work made necessary due to the non-compliance of any equipment or appliance with a regulation of any kind, or to industry standards, are not covered by this Protection.
3. GHP may reject any claim on the basis of pre-existing conditions.
4. Equipment and appliances which, after the promise to purchase is signed, have been subjected to abusive or unconventional usage or have not been maintained or repaired, as the case may be, by a qualified professional, shall not be covered.
5. Equipment and appliances which are more than ten (10) years old are not covered unless replacement parts are available.
6. Obsolete equipment and appliances are not covered.
7. Any and all claims for bodily damage and any type of direct or indirect damage attributable to the following are not covered:
1. a defect in the equipment or appliances and any parts thereof;
2. the failure of GHP to approve or to pay any claim payable under the Protection.
8. GHP shall not be held responsible if it is not able to obtain replacement parts due to labour disputes or other reasons beyond its control and which result in delivery delays.
9. GHP cannot be held responsible if the equipment or appliance cannot be repaired.
10. Notwithstanding any of the provisions of the present, GHP can in no way be obliged to approve or pay for service to or repair of any part, equipment or appliance:
1. if the failure or breakdown is due to improper installation;
2. if the equipment or appliance is damaged or repaired by unqualified personnel prior to the filing of the claim;
3. the damage is the result of the improper relocation of the equipment or appliance;
4. if an inadequate voltage was used;
5. if the damage is the result of a hidden defect;
6. if the equipment or appliance has been modified or used in a manner not recommended by the manufacturer or if the serial number has been modified, falsified, rendered illegible or removed;
7. if the failure or breakdown occurs subsequent to or while the equipment or appliance is in the illegal possession of a third party;
8. if the failure or breakdown is due to collision, overturning, water, freezing, fire, explosion, vandalism or any other fortuitous event unrelated to the normal functioning of the equipment or appliance.

Claims Procedures

1. Emergency repairs: For emergency repairs, such as a breakdown which renders the property uninhabitable, the buyer must take all necessary steps to have the equipment or appliance repaired by a qualified technician and advise a GHP claims adjuster, by telephone, between 8:00 AM and 5:00 PM from Monday to Friday, in accordance with Article k of the conditions applicable to the Homebuyer Protection.
2. Non-emergency repairs: For non-emergency repairs which can wait for 48 hours and, whether or not the parts or equipment require replacement, the buyer must first obtain GHP's permission prior to taking action.
3. Recovery: GHP reserves the right to recover any defective part or equipment or appliance which was replaced by a new or rebuilt part, equipment or appliance in order to verify the validity of any claim submitted by the buyer.
4. Notice of claim: The buyer must forward to the GHP Claims Department, at the address appearing on the front page, all paid invoices for repair or replacement as soon as said repair or replacement has been carried out.

Definitions

"Buyer": buyer of the property eligible for the Homebuyer Protection and beneficiary of the said Protection.
"Pre-existing conditions": conditions whereby the breakdown could be foreseeable or that such breakdown was inevitable given the age, the condition or the usage of the equipment or appliance when the promise to purchase is signed. In particular, all equipment or appliances which are heavily damaged by oxidization, rust or corrosion, if this condition was apparent when the promise to purchase is signed.
"Event": the breakdown of equipment or an appliance. For a claim involving the breakdown of more than one piece of equipment or appliance, the breakdown of each piece of equipment or appliance will be considered as a separate and distinct event.
"Obsolescence": the state in which the equipment or appliance cannot be repaired or replaced because replacement parts are not available or the equipment or appliance no longer exists.

Categories of property eligible for the Protection

To be eligible for the Homebuyer Protection, a property must meet certain conditions. The property must be: 1. Made up of three (3) dwellings or less; 2. Used: New properties are not eligible; 3. Situated within the province of Quebec; 4. Suitable for year round occupancy; 5. Not covered by any other guarantee or insurance; 6. Exclusively residential in character; 7. Sold for more than $40,000; 8. Purchased other than through a repossession; 9. Constructed in a conventional manner, thus excluding mobile homes, whether permanently installed or not. Any property which does not satisfy one or another of the above conditions is not eligible for Homebuyer Protection.

Persons eligible for Homebuyer Protection

Only a person who has purchased an eligible property from an agent acting on behalf of a La Capitale franchisee who has chosen to participate in the Homebuyer Protection program, is eligible for said Protection. Any person who purchases a property through a real estate agent acting on behalf of a broker other than La Capitale franchisee is not eligible for this Protection, even if the property purchased is an eligible property and even if the property has been listed by an agent acting on behalf of a La Capitale franchisee.

Monetary limits of the Protection

Over the term of the Protection, GHP will be liable for a total reimbursement not to exceed five thousand dollars ($5,000), including taxes, at the rate of not more than one thousand dollars ($1,000) for any one event, including all taxes. These sums shall be reduced by the amount of the deductible as described above.

Transfer of Protection

Subject to acceptance by GHP, the entitlements conferred upon the beneficiary of this Protection may be transferred, within thirty (30) days, to a subsequent owner of the eligible property and in accordance with the terms and conditions as described herein, subject to the payment to GHP of a transfer fee in the amount of seventy five dollars ($75.00) plus all applicable taxes.

Term of the Homebuyer Protection

This Protection will be in effect for a period of one (1) year from the signature date of the deed of sale. THE HOMEBUYER PROTECTION Homebuyer Protection is a trademark of La Capitale Real Estate Network. Homebuyer Protection is administered by Garanties Habitat-Plus (GPL Assurance inc.), hereinafter referred to as GHP, a corporation completely independent from La Capitale Real Estate Network. La Capitale and your agent, in offering youre the Homebuyer Protection free of charge, in no way assume responsibility for the fulfilment of the obligations of GHP.