Definition : Penal clause

Clause of the declaration of co-ownership (constituting act of co-ownershipwhich fixes in advance the monetary sanction (a fine) the syndicate may claim from a co-owner following the occurrence of a contravention of one of its provisions. However, the amount of the penalty may be reduced by the court if the clause is determined to be abusive. The penal clause may also hold the co-owner liable for extrajudicial fees incurred by the syndicate to enforce the declaration of co-ownership, to the extent that they are reasonable reasonable in all the circumstances. In particular, the Court must take into account that the payment of extrajudicial fees and disbursements, where permitted by such a clause, is intended to encourage a co-owner to comply with his obligations and, where he does not, to avoid a recurrence.

 WHAT YOU SHOULD  KNOW ! Bill 16 (art. 30) amended article 1053 of the Civil Code of Quebec by specifying that all penalty clauses applicable in the event of a contravention of the declaration of co-ownership are now part of the constituting act of co-ownership. In addition, any penalty clause included in a By-Laws of the immovable, before the coming into force of Bill 16 (January 10, 2020) is now deemed to be part of the constituting act of co-ownership (art. 150 of Bill 16)). Consequently, any decision to introduce or modify a penalty clause in a declaration of co-ownership must be made by the meeting of co-owners in accordance with article 1097 of the Civil Code of Quebec.

WARNING ! The sums that could be due under a penalty clause are not common expenses (condo fees). They cannot be legally transformed into common charges, despite the requirements of a declaration of co-ownership to this effect. These sums cannot be secured by a legal hypothec in favour of the syndicate of co-owners. Nor can a co-owner be sanctioned for his non-payment, by suspending his voting rights and disqualification from being a director. Finally, the buyer of a fraction cannot be required to pay such sums due by his seller, because of article 1069 of the Civil Code of Quebec.

Related articles

23/07/2024

Meeting of the meetings of the co-owners

In order for a Meeting of co-owners to deliberate and adopt decisions, the Law provides that the co-owners (present or represented), eligible to vote, must hold the majority of votes. This requirement is called a quorum.It is also necessary that the quorum be maintained for the duration of the meeting.…...

Syndicate

20/07/2024

Contents of the declaration of co-ownership

.The declaration of co-ownership is a contractual document drawn up by the person who subjects an immovable to the regime of divided co-ownership. Its publication in the Quebec Land Register is a necessity for the existence of a syndicate of co-owners. It includes all the rules ensuring the efficient organization…...

Syndicate

01/07/2024

Mediation in co-ownerships

Co-ownership conflicts often arise from a lack of knowledge of the rules governing the immovable, a lack of communication or transparency, or from an unresolved misunderstanding. Know that in such cases, a trial is not the only avenue available to you. Before commencing legal proceedings, and even once they are…...

Your Rights

01/07/2024

Rights and recourses

Even though a co-owner is at home in his apartment, its use should be in accordance with the prescriptions of the declaration of co-ownership. This document may contain provisions prohibiting any activities other than residential ones in the immovable. To ensure the welfare of its residents, it may be necessary…...

Your Rights

30/06/2024

Enforcing the declaration of co-ownership

The declaration of co-ownership is a contract that orchestrates and regulates the lives of co-owners, lessees and other occupants of the immovable. It represents the guideline for everyone who lives in the immovable.The declaration of co-ownership provides, systematically, that it is up to the board of directors to have its…...

Your Rights

14/06/2024

Unauthorized parking in co-ownerships

In many co-ownerships, managing common spaces represents a daily challenge. Among these challenges, vehicle parking is a thorny issue, just like everywhere else. There are often not enough spaces for all the cars, not to mention those that illegally occupy spots reserved for visitors or remain parked for months without…...

Management
{alt}
lock
You need to have an account to read this article

11/05/2024

Deposit recovery: what are your options?

We find ourselves in a financially challenging situation and seek guidance. Two years ago, we made a 15% deposit for the purchase of an off-plan condo, which was scheduled for delivery this year. According to the terms of the contract, if we fail to meet our obligations, we will not…...

Purchase

11/03/2024

Delivery of a duplicate of the keys

Section 7 of the Charter of human rights and freedoms guarantees the inviolability of a person's home. In principle, no one may have access to a co-owner's apartment without his or her consent; however, it has been rightfully ruled that this rule is not absolute and this is why most declarations…...

Work
{alt}

04/03/2024

Relocation and move-in management

Relocations and move-ins involve going through the common portions of the building to transport furniture, boxes and other personal belongings. These operations could turn into a real mess or nightmare if, in a co-ownership (condominium), the framework for managing them has not been clearly established. While certain provisions of the…...

Management

01/01/2024

Capsule vidéo avec Yves Joli-Coeur: La déclaration de copropriété

Dans cette capsule vidéo, l’avocat émérite Yves Joli-Coeur explique en détail le concept de la déclaration de copropriété. Il s’agit d’une convention qui organise et réglemente la vie collective des copropriétaires et occupants de l’immeuble. Cette convention définit notamment leurs droits et obligations. Comme il s’agit d’un acte authentique, elle doit…...

Syndicate

29/12/2023

Club Marin II Co-Owner Ordered to Pay More Than $100,000 to his Syndicate

Current legal events tell us that it can be costly for a delinquent co-owner not to respect the declaration of co-ownership. Recall that Condolegal reported, in a news item of April 2, 2023, a judgment of the Superior Court condemning a co-owner who rented her apartment on a short-term basis, in…...

Your Rights
{alt}
lock
You need to have an account to read this article

09/08/2022

Permission for children to play in common portions of the co-ownership

I am a co-owner in a co-ownership in phases of 10 syndicates of co-owners who share a grassy lot in common part. Until the arrival of young children in the condos the space was not very busy. Currently it is the regular meeting place for children and their parents (end…...

Your Rights

24/07/2020

Webradio du 22 juillet 2020: Faire réécrire sa déclaration de copropriété

...

Syndicate

13/02/2020

Airbnb coûte 15 000 $ à un copropriétaire

6 février 2020 — Un copropriétaire de Québec a été condamné à payer quelque 15 000 $ à son syndicat, fruit d’une décision rendue par la Cour du Québec – Division des petites créances. L’homme en question louait son unité à court terme (location de type hôtelière), en contravention avec…...

Your Rights
lock
You need to have an account to read this article

09/08/2022

Letting a dog do its business on the balcony

I live on the 5th floor of an 8-storey building. The co-owner on the 7th storey uses his balcony to let the dog urinate and defecate. Unfortunately, the urine and droppings fall back on our balconies. The situation has been going on for almost two years. We sent him e-mails,…...

Your Rights
lock
You need to have an account to read this article

27/12/2017

Unauthorized work: Guide for the Board of directors

A co-owner carried out work on their terrace (a common portion for restricted use) without obtaining prior authorization from the board of directors. Since this work, leaks have been detected at the roof level, causing damage and posing risks to the building's integrity. This situation illustrates the limitations of co-owners'…...

Work