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Article 200 of Bill 41 states: The syndicate of a divided co-ownership established before June 13, 2018 that is not controlled by the developer must submit for approval to the co-owners the first description of the units provided for in the third paragraph of article 1070 of the Civil Code. This description must, by June 13, 2020, obtain at a meeting the approval of the co-owners, representing more than half of the votes of the co-owners, present or represented.
The objective sought by the legislator is to avoid any confusion as to what is, on the one hand, covered by the syndicate's insurance and, on the other hand, covered by that of the co-owner. The law requires syndicates to produce a description of the units that is precise enough so that improvements can be clearly identified. This provision allows co-owners to know which components have been improved in their private portion, which must be covered by their own insurer. In addition, it allows chartered appraisers to determine the reconstruction value of the building, without taking into account the added value provided by these improvements. The risk of conflicts between adjusters during a disaster is minimized. It is therefore imperative for any syndicate to quickly and accurately establish such a description of the private portions, in order to avoid any ambiguity in terms of insurance underwriting. This description is not intended to identify improvements that could have been made to the units over time, but rather to determine what constitutes a "reference unit", that is, the condition of a unit of the finished building, according to its basic or initial standards. This statement will constitute the limit to which the syndicate is required to insure the immovable, with respect to each type of unit. Indeed, as provided for in paragraph 3 of article 1070 C.C.Q. above, it may be that several descriptions are necessary in some co-ownerships, depending on the specific characteristics of the immovable, while a single description of reference unit will suffice for all private portions, in other immovables. In addition, section 198 of Bill 41 states as follows: Section 1097 of the Code is amended by adding the following paragraph at the end: "(5) The the amendment of the description of the private portions referred to in section 1070.». As a result, if a syndicate wishes to change the description of the units, an enhanced majority vote will be required.
Consult the practical sheet Who has to insure the improvements made to private portion? to learn more about this subject.
Service Proposals for Co-Ownerships
To avoid confusion as to what is covered by the syndicate's insurance and what is covered by the co-owners' insurance, Dunton Rainville offers to assist you in the process of establishing the description of the private portions. This fixed price service includes the following services:
The Presence of Professionals
It is sometimes helpful for professionals mandated by the syndicate to be present at the meeting. Dunton Rainville’s professionals could accompany you. This service, which is in addition to the ones described above, makes it possible to explain the technical elements resulting from the reform of insurance law for divided co-ownership and to respond to the various questions of co-owners. Their presence will also help calm the debate.
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For more information: Hélène Joli-Coeur
Email: hj[email protected]
Phone : 450 686-8683
Mtl line : 514 990-8884