The guarantee plan ensures that the contractor must fulfill a number of obligations, and covers the following types of new residential buildings exclusively:
- Detached, semi‑detached or row-type single‑family house
- Multifamily building of two to five units, held in undivided co‑ownership (intergenerational, duplex, triplex, etc.)
- Multifamily building held in divided co‑ownership (condo) of no more than four stacked private portions
- Transformation of buildings
- Building renovations such as extensions, construction on an existing foundation or construction of a non‑adjacent garage to the property
- Condominium buildings that have more than four superimposed private portions
- A home you have built yourself, without the help of a general contractor*
Mandatory listing of new residential buildings constructed for rental purposes
Sometimes, a building constructed for rental purposes may be repurposed in the 24 months following the completion of work, and its units may be sold instead of rented. In the interest of ensuring adequate coverage for buyers and fair treatment for contractors, GCR would like to share with you the procedure for buildings constructed for rental purposes.
Prefabricated homes are subject to certain exceptions:
- If the sales contract is concluded with the manufacturer of a prefabricated home and includes complete home installation (turnkey project), the manufacturer must register the residential unit.
- If the sales contract and installation contract are concluded with the general contractor (turnkey project), the general contractor must register the residential unit.
- If the sales contract is concluded with the manufacturer of the prefabricated home and the installation contract is concluded with a general contractor, only the on-site installation work, by the contractor, is covered by the plan.
Self-built homes are a special case and not generally covered by GCR. Of course, first we need to determine whether a home actually qualifies as a self-build.
Ultimately, it all depends on what work is performed by a contractor with a 1.1.1. or 1.1.2 licence subclass, as well as the elements of construction for which the contractor is responsible.
Elements of construction that GCR considers to be major:
- Doors and windows
Example: if a contractor is responsible for only one major element of construction (e.g., the foundation) and has the necessary licence subclass, the building does not need to be registered. However, if the contractor is responsible for two or more elements (e.g., the foundation and the frame), the unit must be registered with GCR.