Bill 16: What you need to know about new condominium regulations in Quebec (2024-09-11)
On September 11, 2024, the Quebec government published a draft regulation as part of Bill 16. The purpose of this bill is to strengthen the management of divided co-ownerships in Quebec. Although the bill is not yet in force, it is subject to a 45-day public consultation period. Following this consultation, the regulation could be adopted no later than 15 days after the public consultation period. The draft regulation gives unions 3 years to comply, so don't delay!
Here's an overview of the proposed new rules and their implications for condominium management.
1. Professions authorized to carry out the maintenance logbook and contingency fund study
The bill requires qualified professionals to carry out both the maintenance logbook and the contingency fund study. Only members of the following professional orders are authorized to perform these tasks:
Ordre des ingénieurs du Québec;
Ordre des évaluateurs agréés du Québec;
Ordre des architectes du Québec;
Ordre des technologues professionnels du Québec.
These professionals must also have expertise in property management, construction, renovation or inspection. This ensures that the people responsible for the maintenance logbook and contingency fund study have the technical skills needed to assess condominium maintenance needs rigorously and accurately.
In addition to the members of the above-mentioned associations, chartered professional accountants (CPAs) are also authorized to carry out contingency fund studies, provided they meet the specific conditions required by law.
2. The maintenance logbook: precise building monitoring
The draft regulations require all co-ownerships to keep a maintenance logbook. This document will be used to list and monitor the condition of the building's common areas and the materials, appliances and equipment that make them up. It must include the following information:
date of installation, if known;
maintenance work required, with the exception of the work referred to in article 3, as well as the frequency with which it must be carried out and the date on which it was done;
routine repairs and the date on which they were carried out;
contracts concluded for the performance of the maintenance work and routine repairs referred to in paragraphs 2 or 3, where applicable;
warranty contracts in force, if any;
reports of any inspections or expert appraisals carried out;
manufacturer's maintenance manuals, if available.
In addition to the items listed above, the maintenance logbook should also contain additional information crucial to long-term building management, including:
Component condition assessment;
Remaining useful life of materials and equipment;
Description of major repairs and replacements to be carried out over the next 25 years;
Date of major repairs or replacements carried out;
Plans, specifications and contracts for major repairs and replacements carried out.
Update time:
Mandatory annual update to include new information on work and equipment.
Complete revision every 5 years for buildings with more than 2 floors or 8 units.
Revision every 10 years for smaller buildings (fewer than 8 units and 2 storeys maximum).
This revision will enable us to keep the condition of materials up to date, and to anticipate replacements or major repairs over a 25-year period.
Discover our maintenance logbook service.
3. Contingency fund study: Anticipating major expenses
The contingency fund study must be carried out at least every 5 years for all condominiums. This study is based on the information in the maintenance booklet, and enables the costs of major repairs to be forecast.
The contingency fund study will include the following elements:
The total amount of the contingency fund at the date of the study;
An estimate of the cost of each major repair and replacement at the year of completion indicated in the maintenance log;
A recommendation on the minimum amount to be available in the contingency fund at the beginning of each year, and on the amounts to be paid into it annually;
The calculations made to establish the amounts referred to in the above points.
Finally, the contingency fund study must be signed and dated by the professional, ensuring that the document complies with legal requirements and is ready for use by the syndicate in planning future major repairs and replacements.
Find out more about our contingency fund study service.
4. Certification at the time of sale : Mandatory transparency
When selling a condominium unit, the syndicate is required to provide a certificate detailing the financial and technical condition of the building, in accordance with article 1068.1 of the French Civil Code. This attestation is intended to guarantee total transparency for potential buyers, and must contain the following information:
Total amount of the contingency fund and recommendation from the last study as to the minimum amount that must be available at the beginning of the current year.
Total amount of contributions to common expenses required from co-owners by the syndicate over the last two years, as well as the total amount of contributions actually paid during this period.
Total amount of cash available to the syndicate to cover current condominium expenses.
Amount of annual surplus or deficit as shown in the last two financial statements of the co-ownership.
Confirmation that the syndicate holds the insurance policies required by article 1073 of the Civil Code.
Total amount of the self-insurance fund, as well as the amount of the highest deductible under the insurance policies taken out by the syndicate.
Summary description of the following events:
Inspections and appraisals carried out by the syndicate over the last five years, concerning the general condition of the building or its main components.
Claims incurred in the last five years, affecting private or common portions of the building.
Major repairs and replacements carried out on common areas over the past five years, as well as those planned for the next ten years or to be carried out as a result of unforeseen circumstances.
Ongoing disputes involving the syndicate that are the subject of court proceedings.
This certificate must be dated and signed, and include the name and position of the person authorized to issue it. It provides buyers with a complete and accurate picture of the condominium's condition, ensuring greater transparency during the transaction.
5. Down-payment management for new buildings
The regulations also require that deposits for the construction of new condominiums be held in trust. Only certain professional orders will be authorized to hold these deposits, including:
Le Barreau du Québec;
La Chambre des notaires du Québec;
L'Ordre des administrateurs agréés du Québec;
L'Ordre des comptables professionnels agréés du Québec.
This measure is designed to protect buyers by ensuring that deposits are not misappropriated or used for other purposes prior to delivery of the unit.
Public consultation: Participate before October 26, 2024
The draft by-law is currently open to public consultation for 45 days, until October 26, 2024. Directors and syndicates of co-ownership are invited to submit their written comments before this date to Nathalie Mallard, Director, Société d'habitation du Québec, at nathalie.mallard@shq.gouv.qc.ca.
Borée services professionnels: Your partner for technical and financial studies in condominiums
Borée Services Professionnels is a team of engineers and actuaries specializing in technical and financial studies for condominium corporations. We understand the challenges imposed by the new obligations of Law 16 and offer comprehensive solutions to help you comply with these requirements.
Our services include :
Production and management of maintenance logbooks: Detailed monitoring in line with new legal standards, with regular updates to guarantee the durability of your installations.
Contingency fund study: A precise financial analysis to anticipate major repairs and ensure that your condominium has the necessary funds for future repairs.
Full compliance support: We assist you every step of the way to ensure that your condominium meets the legal and financial requirements of the new law.
Don't wait for the deadline! Contact us today for a free quote. Together, we'll prepare your condominium for the new standards.
Discover our services
Contingency fund study
Our engineers assess your financial reserves for major repairs and replacements of the common areas of your co-ownership, in compliance with law 16.
Maintenance logbook
Our engineers will draw up your detailed schedule which lists the information necessary for the maintenance of the common areas of your co-ownership, in compliance with law 16.
Asset management plan
Our engineers carefully assess the current condition of your components in order to provide you with a comprehensive technical analysis report, thus completing your asset management plan.
