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Fund dedicated for major repairs and replacements of the common portions of the immovable, distinct from their regular maintenance. This fund should not be used to pay for day to day maintenance. Its aim is to anticipate the long-term financing needs of major work on the common portions, which require a large investment, by staggering them over time. It is for the board of directors, after consultation with the general meeting of the co-owners, to determine the estimated cost of these expenses and the amounts to be paid into the contingency fund.
WARNING ! Only one contingency fund per divided co-ownership must be constituted. However, it may, as provided for in article 1064 of the Civil code of Quebec, be subdivided to take into account, in establishing the contribution to the contingency fund, the respective rights of the co-owners on the common portions for restricted use.
19/06/2024
With the entry into effect of the Civil Code of Québec in 1994, the legislator introduced the obligation for every syndicate of co-owners to have a contingency fund in order to anticipate and to finance the future expenses to repair and to replace the common portions; this fund is strictly reserved…...
23/03/2010
In the case of contingency funds, a syndicate of co-owners must have guidelines for the investment of the sums accumulated in the fund. It must clearly define the return and risk objectives for a given period while taking into account constraints such as liquidity needs, the legal context and exceptional…...
23/03/2010
The Asset Management Plan (AMP) is a comprehensive process for ensuring the conservation and maintenance of real property assets. This plan details the information regarding the common elements and the measures required to provide an agreed-upon level of service in the most cost-effective manner, while describing the associated risks. In…...
23/03/2010
As beautiful as it may be, a new co-ownership will age and eventually require major repairs. In Quebec, however, about half of the syndicates of co-owners do not have any management tools to adequately fund the contingency fund. This issue, which can sometimes have financially disastrous consequences for certain co-owners,…...
09/08/2022
Co-ownership work is of the utmost importance. Yet, they are more often than not overlooked by the syndicates of co-owners. Work that needs to be done in common portions can be minor or major in scope. Yet one needs money to pay for them. Good financial planning is therefore advisable…...
16/06/2024
The contingency fund constitutes first and foremost a prevention tool. The desire to incite co-owners to anticipate the completion of important work is not news. Prior to the entry into effect of the Civil Code of Québec in 1994, it was a frequent occurrence for a co-ownership (condominium) to have…...
31/05/2024
Every syndicate of co-owners has obligations regarding the maintenance of the common portions. The certificate of the state of the immovable is an essential step in ensuring the preservation of the immovable; it constitutes a preliminary step before seeking the services of a professional to conduct a contingency fund study. The certificate…...
25/05/2024
Most insurance policies include deductibles, with amounts varying based on the insured risk. For example, the deductible for water damage is generally higher than that for fires. The purpose of the deductible is to make the insured responsible by having them cover part of the repair costs for damages caused by…...
21/05/2024
Syndicates of co-owners must set up a liquid and available short-term Self-Insurance Fund. The purpose of this fund is to anticipate and finance, in particular, expenses relating to the carrying out of future work following a disaster. This fund, mandatory under article 1071.1 of the Civil Code of Quebec, became…...
04/05/2024
The presence of a swimming pool in a divided co-ownership is a significant attraction for the building's occupants, transforming common portions into a haven of relaxation and comfort. This facility allows residents to enjoy swimming pleasures without leaving the comfort of their home. Effective management and proper use of this…...
30/03/2024
Common expenses are payable by the person who is the title owner upon receipt of the notice of assessment. However, when selling a fraction, the buyer may be required to pay with interest for all common charges owed by the seller (Article 1069 of the Civil Code of Québec). It…...
22/03/2024
En tant que membre du conseil d'administration de notre syndicat de copropriété, je suis fréquemment confronté à une variété de documents et communications qui emploient divers acronymes et abréviations propres au secteur de la copropriété. Dans le but d'améliorer ma compréhension ainsi que celle des autres membres du conseil, et…...
29/02/2024
Preparing a forecast annual budget is an unavoidable task in a co-ownership (condominium); its preparation, preliminary examination and adoption will ensure the proper functioning of the syndicate of co-owners. It is up to the board of directors to define the terms of the forecast annual budget based on the expenses that will have to…...
01/01/2024
Dans cette capsule vidéo, l’avocat émérite Yves Joli-Coeur explique le concept du Fonds de prévoyance. Il rappelle qu’avec l’entrée en vigueur du Code civil du Québec, en 1994, le législateur québécois a introduit l’obligation, pour tout syndicat de copropriétaires, de se doter d’un « fonds de prévoyance ». Ce fonds…...
18/09/2021
The juridical personality of the syndicate is distinct from the one of the co-owners and directors. His acts are binding only on himself, besides for the exceptions provided by law. The faults committed by the syndicate have consequences only on its own civil liability and not on the directors. Under these conditions,…...
09/08/2022
A syndicate of co-owners has the obligation to account for its operations by funds. The Civil Code of Québec requires the creation of a general fund, a contingency fund and in April 2022, the creation of the self-insurance fund. The creation of the early self-insurance fund is recommended. The general…...
11/06/2021
Le fonds d’auto assurance est affecté au paiement des franchises prévues par les assurances souscrites par le syndicat et d'un montant additionnel raisonnable Questions : Qu'est-ce qu'un montant additionnel raisonnable? Comment fait-on pour connaitre la somme additionnelle? On doit se fier sur quoi exactement pour définir la somme additionnelle?...
09/08/2022
At our last annual co-owner's meeting, the board of directors informed us that it was going to take $10,000 from our contingency fund to set up a self-insurance fund. To justify their decision, the directors said that this will allow to avoid putting up a special assessment. Several co-owners seemed to…...
31/07/2020
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09/08/2022
Question: We have accumulated significant sums for the repair of the roof, which is to take place in ten years. As part of the sale of my apartment, can I ask the buyer or the syndicate for a refund of the contributions I have paid to the contingency fund?...
17/02/2015
The tax status of a syndicate of co-ownership As with any legal person, a syndicate of co-owners has tax obligations to respect under penalty of consequences that could have a significant impact on the financial situation of the co-ownership and the co-owners. Although governed by specific rules set out in…...
25/10/2010
Before buying the apartment of your dreams, find out about the status of the common expenses associated with it, especially those that may have remained unpaid by the seller. Common expenses, better known as " condo fees", which you will have to pay once you become a homeowner, are an essential…...
16/09/2010
When you buy a unit in divided co-ownership, you do not only acquire an apartment. You also join a group of co-owners responsible for the accounts to be paid to maintain and preserve the building. It is therefore important to be careful and to check, upstream, the financial statements and…...
23/03/2010
Seven years ago, the board of directors engaged professionals to conduct a contingency fund study. Upon reviewing it, the directors at the time deemed the financial contributions required from the co-owners to the contingency fund too costly. Recently, a sale of an apartment in our building failed because the buyer…...
23/03/2010
I am a recent co-owner. The building I live in has 10 units. The contribution to contingency fund is substantial. In fact, it represents 20% of the budget of the co-ownership! That seems excessive. Question: Is there a ceiling to the amounts to be paid in the contingency fund?...
09/08/2022
I have been living for a year in a condo I bought in a recently built building. To my surprise, there is still no contingency fund being funded. We pay the common expenses of the immovable monthly (maintenance, snow removal, condo insurance), but no 5% of the budget contribution…...