Deposit on a new home in Quebec: GCR's $50,000 cap, the preliminary contract and the 10-day right of withdrawal

Building · Deposit · Preliminary contract

How much to pay, when, to whom, and what protects your money between signing and delivery.

On a new home in Quebec, the deposit paid to the contractor is protected by the Garantie de construction résidentielle up to $50,000, on two conditions: the sales contract is signed and the contractor is GCR-accredited. Anything above $50,000 is at your own risk. The preliminary contract, governed by the Civil Code, must include a right of withdrawal of at least 10 days, during which you can back out against at most the stipulated indemnity (never more than 0.5% of the price). Extras, price adjustment clauses, the delivery date and the pre-acceptance inspection are negotiated before signing, not after. Figures read on garantiegcr.com on 15 September 2026.

The $50,000 rule

The GCR warranty reimburses deposits paid to the contractor up to $50,000. Two conditions: the sales contract must be signed, and the contractor must be accredited at the time of payment. A deposit handed over on a handshake, or to a non-accredited seller, is protected by nothing. GCR's practical rule is simple: never pay more than $50,000 before delivery, and check the accreditation on GCR's site before the first cheque.

The preliminary contract and the 10 days

The sale of a new home by a builder or developer goes through a preliminary contract that must include a right of withdrawal of at least 10 days: you can back out during that period, against at most the indemnity provided in the contract, which cannot exceed 0.5% of the price. Those ten days are for having the contract read, getting the pre-approval and comparing with resale: our page new home or resale (in French) does the math. Our guide to the preliminary contract describes each clause.

What is negotiated before signing

The payment schedule

A typical schedule: a deposit at the signing of the preliminary contract, one or two payments at job-site milestones, the balance at the notary's on delivery. Every payment before delivery adds up within the $50,000 cap. If the builder demands more, ask that the excess be held in trust by the notary, not paid to the company. The FHSA and the Home Buyers' Plan can serve for the deposit as for the final down payment, under each plan's rules.

Frequently asked questions

How much deposit does a builder ask for in Quebec?

There is no legal rule on the amount; the contract sets it. What is regulated is the protection: $50,000 by GCR, provided the contract is signed and the contractor accredited.

Can I cancel the purchase of a new home?

During the 10-day right of withdrawal in the preliminary contract, yes, against at most the stipulated indemnity (maximum 0.5% of the price). Afterwards, only the contract's conditions (financing, sale of your home) let you withdraw without penalty.

Is the deposit lost if the builder goes bankrupt?

Not up to $50,000, if both conditions are met: GCR reimburses the deposit or has the work completed within its caps. Above that, you are an ordinary creditor.

Sources: garantiegcr.com, pages “Quelles protections s'appliquent à ma nouvelle propriété?”, “Frequently asked questions” and the “Your protections” sheet, read on 15 September 2026. Informational page: the guarantee contract and the regulation prevail.

Our proof, not our promises

The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts more than 220 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.

Also available in French: version française de ce guide.

Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.

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