Quebec is distinguished by its range of habitats, ranging from single-family homes to rental buildings, not to mention condominiums. Each of these residences obeys its own governance logic.
For a single-family house, the owner has full management authority. Rental buildings, on the other hand, are the responsibility of the owner of the property complex. But as for co-ownerships, more commonly known as condos, the management is conferred on a syndicate, under the aegis of a major text: the declaration of co-ownership.
As the legislative heart of co-ownership life, the declaration sets out the precepts that govern the collective and the administration of shared property. Authenticated by a notarial deed and registered in the land register, the primary purpose of this document is to delimit the contours of the divided co-ownership and to set up its syndicate. This process is reinforced by professional management of real estate projects, ensuring that the administration of condominiums complies with the rules of compliance with Laws 16 and 141, essential for the stability and security of shared property. Registering the declaration in the register of private portions is a key step in ensuring transparency and the protection of the rights of co-owners.
What is the union?
This legal collective brings together all the co-owners of the same building. The birth of a divided co-ownership is justified by the desire to separate a building into lots, comprising a private portion and a fraction of the common areas, owned by various individuals.
The formalization of the declaration of co-ownership in the Land Register gives the co-owners a legal existence, embodied by the “Syndicate of co-owners”.
Genesis and legal scaffolding
If co-ownership has its roots in ancient Rome, it is in the modern fold of the United States and France that it flourished. In Quebec, it was formally established in 1969 with the Divided Co-ownership Act, laying the legal groundwork for co-ownerships where private and common possessions are intertwined.
Amended several times, this legislation underwent a notable transformation in 1994 with the reform of the Civil Code, then in 2020 with Bill 16, establishing an era of transparency and efficiency in the management of co-ownerships.
Key Goals and Missions
The syndicate of co-ownership aims to ensure the harmonious management and maintenance of the building, while ensuring the patrimonial interests of the residents. He ensures the strict application of the regulations, orchestrates the financial management and subscribes to the required insurance, thus ensuring the sustainability, security and enhancement of the co-ownership.
His primary quest? Preserve the building, orchestrate the maintenance of the common portions and administer the whole in the common interest.
Structure and mechanics of the syndicate
As an entity in its own right, the syndicate of co-owners has a legal personality, giving it the latitude to sign contracts, hire, own, transfer property and take legal action.
It is structured around two decision-making entities: the board of directors, which is responsible for day-to-day operations, and the meeting of co-owners, which sets out the main axes of the property.
The board of directors of the union
This pivot of the condominium manages the day-to-day and can delegate some of his prerogatives, recruit staff or appoint a manager for an optimized administration, thus adjusting to the specific needs of the condominium.
The board of directors, the cornerstone of the management of a co-ownership, is made up of owners elected during the annual general meeting. Depending on the size of the co-ownership, the number of directors may vary, with a minimum of three, with the exception of syndicates of two units. The notary determines this number, which is then recorded in the declaration of co-ownership.
The members of the Board of Directors are chosen by ballot at the annual meeting. These regular meetings are an opportunity to discuss current business and adopt crucial resolutions by a majority of the votes of the directors present.
Their mission is vast: to ensure rigorous financial management, including the preparation of the budget and the collection of co-ownership fees; take charge of the maintenance, work and repairs necessary to preserve the building and its common areas; ensuring the application of internal regulations and cracking down on shortcomings; communicate transparently with the co-owners, informing them of any decisions, projects or significant issues; and represent the union in court or in other administrative proceedings.
To optimize their efficiency, council members can be trained in condominium management. They are accountable for their actions to the co-owners and can be held liable in the event of deficient management or negligence.
The involvement of the co-owners in the electoral process is essential to appoint a competent council, directly impacting the quality of life and the smooth running of the co-ownership.
As for the Annual General Meeting of co-owners, it is a decisive moment when owners consult each other to decide on the major orientations of their building. The quorum, i.e. the majority of the votes of the co-owners, is necessary to validate decisions.
The powers of the assembly are diverse: it consults on the provisional budget and exceptional contributions; it may modify the declaration of co-ownership according to the majorities required by the nature of the change; it has the power to adopt and revise internal regulations; it authorizes work on the common portions, in accordance with the majority thresholds defined by the Civil Code of Québec; and it elects the directors of the board in charge of day-to-day management.
Resolutions require an absolute majority to be adopted, i.e. the number of votes in favour must exceed the number of votes against and neutral. In specific cases such as changes to the declaration or improvement works, a reinforced majority of 75% of the votes is required, and sometimes even a double majority is required for major changes. Proactive management in accordance with Laws 16 and 141 is essential to maintain consistency between the decisions of the meeting and legal obligations. In addition, the assembly can rely on tools such as the maintenance book for condominiums to better plan and manage work on the common portions.
Meeting of co-owners
At the heart of the collective life of a co-ownership, the meeting of co-owners is essential. His role? Arbitrate decisions, steer management. Convened by the property manager, the deadlines must be observed, faithful to the Declaration of Co-ownership, mentioning the agenda, date, time, place.
When the time for the assembly strikes, a president is elected, his mission: to guide the debates, respect the agenda, orchestrate the interventions, ensure the smooth running of the votes. In short, the assembly is the democratic engine of the co-ownership, a place of active engagement for each co-owner.
Regarding the documentation, clarity is required. The board of directors must annex to the notice of meeting all essential documents, with financial statements in the lead. The minutes of the meeting, which bear witness to the decisions taken, are part of the history of the co-ownership. Its transmission, which must be submitted within 30 days, is the responsibility of the council.
Financial management
The property manager draws up a provisional budget, providing for expenses related to maintenance, management and work. It is based on common expenses and their equitable distribution. Three funds structure the finances: the day-to-day operating fund, the contingency fund for major future works, which is regularly replenished to avoid urgent calls for funds, and the self-insurance fund, established by Bill 141, to cover deductibles in the event of disasters, integrated into the annual budget.
As for the legal obligations, the declaration of co-ownership provides a framework for the recovery of charges. Formal notice by registered mail, the property manager informs the co-owner late. Penalties and interest may apply in the event of non-payment.
If necessary, the property manager can harden his position. Assistance from a professional, use of a bailiff for collection procedures, application to the Small Claims Court to obtain a judgment, legal hypothec to secure the debt, and finally, in the event of a favourable judgment, enforcement measures could be taken to obtain payment.
Insurance
To protect the co-ownership, the syndicate must ensure that it subscribes to diversified insurance.
Property insurance is crucial to cover the building, equipment and shared spaces against losses such as fires, floods or malicious acts. It is based on a professional estimate of the reconstruction value of the building.
The syndicate’s civil liability insurance is essential to compensate for damage inflicted on third parties, whether in the common areas or as a result of the syndicate’s activities.
To defend directors against claims related to their management, directors’ liability insurance is necessary, as is insurance covering legal costs in the event of disputes.
These coverages are vital to safeguard the interests of the syndicate members and co-owners in the face of contingencies and conflicts.
Documentation and archiving
The key documents of the syndicate include the declaration of co-ownership and the regulations of the building, defining the obligations of the co-owners and the rules of collective life. These texts are recorded in the register of co-ownership.
The declaration of co-ownership, an essential legal document, provides a framework for the management of the co-ownership and is divided into three parts: the deed of incorporation, the regulations of the building and the descriptive statement of the fractions. It determines the obligations and rights of the co-owners, the distribution of the units, the common portions, the terms of the co-ownership, the related charges, as well as the voting rights at the general meeting. This document is legally binding on all co-owners.
The register keeps track of all the important documents of the co-ownership: declaration, building regulations, list of members, building plans, cadastral plan, contingency fund study, maintenance logbook, minutes, financial statements, contracts, insurance policies and others.
Article 1070 of the Civil Code of Québec clearly specifies the content and terms and conditions associated with the Register of Co-ownership.
The syndicate of co-ownership must keep this register up to date, an absolute legal requirement, and make it accessible to co-owners on request. The latter have a right of consultation, governed by pre-established regulations. As for the data it contains, its confidential nature is intransigent, its disclosure to third parties being subject to the consent of the co-owners and governed by the Personal Information Policy, echoing Bill 25.
The purpose of this register is to simplify access to relevant documents for co-owners, thus allowing them to decide and act in full knowledge of the facts concerning the workings of their co-ownership.
Regarding archiving, the legislator does not give precise guidelines on the retention period of documents. The duration varies according to several criteria, including legal obligations, condominium regulations and the type of document. It is generally recommended to keep official documents such as the declaration of co-ownership, minutes of meetings, contracts, financial statements and the history of interventions indefinitely. The archives of the current year await the next general meeting to be updated, while the contracts and guarantees are kept for several years and the tax files, usually for seven years.
Rights and obligations of co-owners
The co-owners, in their sphere of rights and obligations, have the latter defined by the Act respecting divided co-ownership and the internal by-laws. They benefit from an exclusive right to their private unit, use of the common areas according to the established rules, participation and voting at general meetings and access to the essential documents of the co-ownership.
In return, they agree to contribute to the common expenses, to comply with the co-ownership’s regulations, to take part in general meetings and to ensure the maintenance of their private unit as well as that of the restricted common portions. These rights and duties seek to promote a harmonious and fair balance within the co-ownership, guaranteeing the protection of individual interests. To ensure optimal monitoring of maintenance responsibilities, the use of a property maintenance logbook is essential, as well as compliance with the requirements defined by Laws 16 and 141 in order to comply with legal and financial obligations.
Legislative Outlook
In terms of prospects, the reform of the Civil Code of Québec, supported by the adoption of Bills 141 and 16, has reinvigorated the dynamics of divided co-ownerships. These laws have modernized the legal framework, consolidated the rights of co-owners, optimized the financial management of syndicates, strengthened transparency and put in place more effective dispute resolution mechanisms.
These legislative adjustments respond to societal changes and the growing needs of co-owners in Quebec.
Condominium Governance in the Current Era
Recent legal developments require condominium administrators to constantly monitor legislation. Understanding the current laws is essential for optimal management.
Recent years have seen legislative reforms disrupt the management of condominiums, especially small structures. Law 141 on insurance, the adjustments to Law 16, and most recently, Law 25 on confidentiality, illustrate these upheavals.
Constant training appears to be a necessity for administrators.
Conflict Resolution and Mediation
For a serene cohabitation in co-ownership, conflict resolution and mediation are essential.
Opting for open and transparent communication between all stakeholders makes it possible to prevent and settle disputes quickly. The establishment of conflict resolution mechanisms, such as committees or neutral mediators, facilitates the management of disputes. It is also advisable to adapt the internal regulations to the evolving needs of residents and to fill in gaps that can lead to conflicts.
Well-honed conflict resolution strategies guarantee harmony and quality of life within the condominium.
Maintenance and renovation
The syndicate ensures the conservation of the building, making maintenance and renovation crucial to the preservation of the value and safety of the property.
Regular interventions prevent property degradation. Thoughtful renovations increase the comfort and usefulness of shared and private spaces, improving the lives of residents.
Ultimately, this work is the key to maintaining value, safety and well-being in co-ownership, while ensuring their attractiveness and sustainability.
A condominium where well-being and satisfaction reign is the result of the commitment of administrators and residents to a proactive and collaborative management of their building.
