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, should soon be resolved by the requirement to obtain a contingency fund study, to which the syndicates of co-owners will be subject due to upcoming amendments to the Civil Code of Quebec following the adoption of Bill 16 in December 2019.
This contingency fund study will prevent the co-ownership from facing difficulties due to directors who have not adequately planned the necessary financial contributions. Here is an overview of the modalities related to the contingency fund study and the transitional measures surrounding these new legislative provisions.
