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Amounts of money required from the co-owners by the syndicate of co-owners to build up financial reserves (contingency fund) to be used to pay for future work related to major repairs and replacements of the common portions. The method of allocation (share) is the same as that for general common expenses, that is to say according to the relative value of each fraction. However, article 1072 sub-paragraph 2 of the Civil Code of Quebec limits the application of this rule. It specifies that in order to establish the co-owner’s contribution to the contingency fund, their respective rights on the common for restricted use portions may be taken into account. For example, the declaration of co-ownership could provide for a provision allowing to charge to a co-owner the costs associated with the replacement of a terrace of which it has exclusive use.
08/07/2024
I've recently become a co-owner. The building I live in, which is over 30 years old, has 10 units. The contribution to the reserve fund is substantial. In fact, it consumes 20% of the condominium's budget! This seems excessive to me. The other co-owners share this concern and question if…...
27/06/2024
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…...
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…...
16/06/2024
Co-ownerships must set up a contingency fund to finance future work expenses. When it comes to major repairs or the replacement of the common portions, consideration is given to the obligation imposed on the syndicate to preserve the building and its corollary: the constitution of a contingency fund. This fund…...
16/06/2024
Replacing windows, reroofing or rehabilitating underground parking slabs, to name but a few, is usually very expensive. Upgrading the common portions generally represents significant costs for the co-ownership and managing them can be complex. This reality is accentuated by the aging of Quebec's housing stock and the new obligations introduced…...
17/04/2024
The contingency fund is set up on the basis of forward planning limited to certain work namely that which the purpose is the preservation of the common portions; thus, this collective saving allows to finance the execution of work allowing the rehabilitation of the common portions as well as the common portions for restricted use. The contingency fund must…...
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…...
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?...