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The new provisions introduced by Bill 16 will bring about many changes regarding the contingency fund in a co-ownership. It will be mandatory to obtain a contingency fund study, which will establish the necessary amounts so that the fund is sufficient to cover the estimated cost of major repairs and replacement of the common portions (art. 1071 of the Civil Code of Quebec). The miminal content of this study and the professionals who will be…...
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 a reserve fund even though the Civil Code of Lower Canada was silent on this question; the majority of declarations of co-ownership contained provisions on…...
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 be used to pay the cost of very specific work namely that related to major repairs or the replacement of the common portions of the immovable. ...
Article 1071 of the Civil Code of Québec states :" The syndicate establishes, according to the estimated cost of major repairs and the cost of replacement of common portions, a contingency fund to be used exclusively for such repairs and replacement. The fund must be partly liquid and be available at short notice, and its capital must be guaranteed. The syndicate is the owner of the fund, and the fund’s use is determined by the board of directors.». Each…...
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 circumstances. This task is delicate, because a syndicate of co-owners acts asadministratorofthe property of others. That is why it must submit to restrictive and precautionary…...
Works carried out in common portions concern the entire community of co-owners, which is why they are often managed by the syndicate. Not only is this action consistent with its purpose and mission (article 1039 of the Civil Code of Québec), which aims to ensure the maintenance and preservation of the immovable, but it also stems from an onerous liability that falls on the syndicate, should the works be poorly executed, for example. In this context,…...
The law has provided legislative provisions for syndicates of co-owners to ensure they are protected in the event of poorly executed work (article 1081 of the Civil Code of Quebec). The legislator aims to address the issues that may arise following a construction project. When work is carried out in common areas, the syndicate benefits from several legal guarantees. These include guarantees for poor workmanship, hidden defects, and loss of the structure. All these rights…...
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 in the medium and long term, so that the community of co-owners can adequately protect its real estate investment. Replacing windows, the roof or rehabilitating…...
Work to be carried in common portions is to be undertaken by the syndicate of co-owners. In its capacity of the client, he is the instigator and the beneficiary thereof. It prepares the specifications and consequently the needs, the budget, the provisional calendar and the objectives to be achieved. In relation to such work, the syndicate should always be governed by its mission. It should never act as a substitute for the general contractor, such…...
In principle, the work undertaken by the syndicate should not cause harm to a co-owner. If he suffers a prejudice beyond a mere temporary nuisance, he is then be entitled to an indemnity. Article 1067 of the Civil Code of Quebec states that a co-owner may be indemnified by the syndicate, if the work was carried out at the request of the latter. This article lists the grounds for indemnification, namely the permanent diminution in…...
