Sellers : Advice

The APEC Guarantee

APEC is a trademark of La Capitale Real Estate Network. The APEC Guarantee is administered by Garanties Habitat-Plus (G. Proulx et Associés Assurances inc.), hereinafter referred to as GHP, a corporation completely independent from La Capitale Real Estate Network. La Capitale and your agent, in offering you the APEC Guarantee free of charge, in no way assume responsibility for the fulfilment of the obligations of GHP.

Property covered under the guarantee
To be admissible to the APEC Guarantee, 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 admissible;
3. Situated within the province of Quebec;
4. Suitable for year round occupancy;
5. Unprotected 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 coverage under the APEC Guarantee.

Persons eligible for coverage under the APEC guarantee
Only those persons having purchased an admissible property from an agent acting on behalf of a franchisee of La Capitale, and who has chosen to participate in the APEC Guarantee pro-gram,is eligible for said guarantee.

Any person who purchases a property through a real estate agent acting on behalf of a broker other than a franchisee of La Capitale is not eligible for this guarantee, even if the property purchased is an admissible property and even if the property has been listed by a participating La Capitale franchisee.

Term
This guarantee will be in effect for a period of one (1) year from the date of signature of the deed of sale.

Monetary limits
GHP will be liable for a total amount not to exceed five thousand dollars ($5,000), including all taxes, over the term of the guarantee, and this at not more than one thousand dollars ($1,000$) including all taxes, for any one occurrence . These sums shall be reduced by the amount of the deductible as described below.

DEDUCTIBLE
The buyer shall be responsible for the payment of a deductible in the amount of one hundred dollars ($100) for each occurrence, which sum shall be deducted from the total amount of the guarantee or the amount of the claimed occurrence, whichever is less. Equipment and appliances included in the sale covered by the APEC Guarantee, subject to certain conditions, exclusions and limitations

1. The electrical system;
2. The central heating system and the heat pump;
3. The plumbing (water pipes and drains) excluding, but not limited to, sinks, toilet bowls, tanks, bath tubs, fixtures, water heaters and other accessories;
4. All items below, on condition that they are listed on the list of inclusions of 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 APEC Guarantee even if listed 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 at the time of signature of the deed of sale. *All equipment and appliances which are located outside of the dwelling, including those located in the common areas of a co-property.

Conditions applicable to the APEC Guarantee
GHP guarantees all qualified buyers of a property which is admissible to the APEC Guarantee, that all equipment and appliances included in the sale will function properly, sub-ject to the following conditions:

1. This guarantee applies solely to repairs resulting from sudden and accidental breakdown, despite a normal usage for which the equipment or appliance was intend-ed;
2. This guarantee is conditional upon the fact that the equipment and appliances were in good operating condi-tion at the time of signature of the act of sale;
3. The equipment and appliances must not be covered by any other guarantee;
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 dwelling (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 remanufactured 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, remanufac-tured or used goods, at the discretion of GHP, of the same type and quality. The goods may be replaced with goods of a superior quality if the assured so desires and if he pays any costs exceeding those for which GHP is herein liable;
9. In all circumstances, the liability of GHP shall be limited to the cost any informed, diligent consumer would incur having taken the steps necessary in obtaining the best possible price, and this for the cost of parts, equipment and appliances as well as hourly rates necessary to the repair;
10. In the instance of work required to repair or replace various equipment parts, GHP hereby agrees to restore any damaged area to its original state provided the cost of such restoration work falls within the limit of $1,000 per occurence and the aggregate limit of $5,000;
11. The buyer must advise GHP as soon as any breakdown occurs at the risk of having any claim rejected due to the late filing thereof;
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 repair service if it is determined that the repair is not cov-ered by the present;
2. Preventative maintenance, leasehold improvements, renovations or any and all work made necessary due to the non-conformity of any equipment or appliance to a regulation of any kind, or to industry standards, are not covered by the present guarantee.
3. GHP may reject any claim on the basis of pre-existing conditions.
4. Equipment and appliances which, after the signature of the promise to purchase, 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 direct or indirect damage are not covered, no matter the nature, because of :
   • - defect in the equipment or appliances and any parts thereof;
     
     
   • - the failure of GHP to approve or to pay any claim payable under the present guarantee;
     
     
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 can not be held responsible if the equipment or appliance can not 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:
    • - if the failure or breakdown is due to an improper installation;
      
      
    • - if the equipment or appliance is damaged or repaired by unqualified personnel prior to the filing of the claim;
      
      
    • - if the damage is the result of the improper relocation of the equipment or appliance;
      
      
    • - if an inadequate voltage was used;
      
      
    • - if the damage is the result of a hidden defect;
      
      
    • - if the equipment or appliance has been modified or used in a manner not recommended by the manufac-turer or if the serial number has been modified, falsified, rendered illegible or removed;
      
      
    • - if the failure or breakdown occurs subsequent to or while the equipment or appliance is in the illegal pos-session of a third party;
      
      
    • - if the failure or breakdown is due to collision, over-turning, water, freezing, fire, explosion, vandalism or any other fortuitous event unrelated to the normal functioning of the equipment or appliance.
      
      

Claims Procedures
Emergency repairs: In the case of an emergency repair, such as a breakdown which renders the property uninhabitable, the buyer must take all necessary measures 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 11. of the Guarantee Conditions;

Non-emergency repairs: In the case of 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;

Recovery: GHP reserves the right to recover any defective part or equipment or appliance which was replaced by a new or remanufactured part, equipment or appliance in order to verify the validity of any claim submitted by the buyer;

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.

Transfer of guarantee
Subject to acceptance by GHP, the entitlements conferred upon the buyer herein may be transferred, within thirty (30) days, to a subsequent owner of the admissible 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.

Definition
"Buyer": buyer of the property admissible to the APEC Guarantee and beneficiary of the APEC Guarantee.

"Pre-existing conditions": those conditions which may fore-tell the breakdown or that such breakdown was inevitable given the age, the condition or the usage of the equipment or appliance and which existed at the time of the signature of the promise to purchase. Notably, all equipment or appliances which are heavily damaged by oxidisation, rust or corrosion if this condition was apparent at the time of signature of the promise to purchase.

"Occurrence": the breakdown of an equipment or appliance. In the case of the breakdown of more than one equipment or appliance, the breakdown of each equipment or appliance will be considered as a separate and distinct occurrence.

"Obsolescence": the state in which the equipment or appli-ance can not be repaired or replaced because replacement parts are not available or the equipment or appliance no longer exists.