The field of condominium management in Quebec remains without legislative oversight, a situation that could lead to similar abuses as those recently seen in Europe. While other Canadian provinces or European countries strictly regulate this profession, Quebec still lacks a specific legislative framework for managers. This lack of regulation allows anyone to assume this role without any competency or certification criteria, exposing co-owners to significant risks. It is therefore imperative to establish rigorous regulations to protect co-owners and ensure professional and transparent management of condominium properties.
An alarming case in Europe: Fraud in Spain
A striking example comes from Spain, where several hundred co-owners were victims of a large-scale fraud. The condominium management firm Barea and Zango, based in Catalonia and managing nearly 400 co-ownerships between Barcelona and L'Hospitalet de Llobregat, has officially gone bankrupt. However, the co-owners believe that the director has disappeared with several million euros. The funds intended for the maintenance of common portions, renovation work, and payment of utility bills have vanished, leaving some co-ownerships in critical situations. For example, a co-ownership of 28 owners lost 90,000 euros, originally paid for the renovation of their building’s façade.
Complaints and financial losses for co-owners
Several co-ownerships have filed complaints, while others have opted not to, to avoid worsening their financial losses. Such a scandal could easily happen in Quebec if swift action is not taken to regulate the activities of condominium managers.
A complex activity without regulation in Quebec
The absence of a legal framework in Quebec is all the more concerning given that condominium management is a complex activity. It requires diverse skills, including real estate law, financial management, and building maintenance. Without regulation, co-owners have no specific recourse in case of poor management, which could lead to situations similar to those observed in Europe.
The Jacques Paquet case: a Quebec example
A similar example in Quebec is the Jacques Paquet case in 2012. This condominium manager was permanently expelled by the Discipline Committee of the Ordre des administrateurs agréés du Québec (OAAQ) for embezzling thousands of dollars from several condominium associations. The case sent shockwaves through the industry, highlighting the urgent need for stricter regulation of the profession.
Towards legislative reform in Quebec?
The Quebec legislator has yet to show a clear interest in regulating this crucial profession. Urgent action is needed to prevent Quebec from becoming the stage for frauds similar to those observed in Catalonia, where co-owners lost not only money but also essential documents such as contracts and management records. Without legal regulation, condominium management in Quebec remains vulnerable to abuse.
The Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) advocates for professionalization
For 25 years, the RGCQ has been advocating for legislative regulation of the profession to protect co-owners and ensure the quality of services provided. The RGCQ proposes the creation of an official registry of managers and the implementation of professional certifications to ensure that only qualified professionals manage condominiums.
The importance of acting quickly
The situation in Spain, along with the Jacques Paquet case in Quebec, highlights the need for a rigorous legislative framework for condominium management. It is imperative that Quebec takes steps to protect co-owners and ensure that the management of common property is entrusted to qualified professionals subject to strict rules.
To consult the decision rendered by the Ordre des administrateurs agréés du Québec (OAAQ), click here,
To consult the sanction rendered by the OAAQ, click here
Also read this article published in Argent: Administrateur de condos : Jacques F. Paquet est radié.
Montreal, October 12, 2024
