This section includes selected articles from the Civil Code of Québec. These articles are relevant for a better understanding of the legal framework governing divided co-ownership in Quebec. They are accompanied by commentary from the Minister of Justice (1993), as well as by analyses published on Condolegal.com regarding various legislative amendments. To distinguish these amendments from the original texts, a color-coding system has been used. Amendments introduced by various bills are highlighted as follows: highlight in yellow for Bill 141 (2018), blue for Bill 16 (2019), green for Bill 41 (2020), orange for Bill 103 (2021), plum for Bill 96 (2022), and red for Bill 31(2024).
These abstracts are not exhaustive. In some cases, it is necessary to refer to other legislative provisions relating to divided co-ownership for a complete understanding. In this regard, readers are encouraged to consult the publication titled Code de la copropriété divise, a reference work conceived and prepared by Me Yves Joli-Cœur and Me Yves Papineau—, two experienced lawyers—to promote a deeper knowledge of case law and legal commentary.
Disclaimer: The articles of the Civil Code of Québec and the Minister of Justice’s comments are provided for information purposes only. In the event of any discrepancy, the official version shall prevail.
DIVIDED CO-OWNERSHIP OF IMMOVABLES
Division I- Established of divided co-ownership (Articles 1038 to 1041 C.C.Q)
Division II- Fractions of co-ownership (Articles 1042 to 1051 C.C.Q)
Division III- Declaration of co-ownership (Articles 1052 to 1062 C.C.Q)
Division IV- Rights and obligations of co-ownership (Articles 1063 to 1069 C.C.Q)
Division V- Rights and obligations of the syndicate (Articles 1070 to 1083 C.C.Q)
Division VI- Board of directors of the syndicate (Articles 1084 to 1086.4 C.C.Q)
Division VII- General meeting of the co-owners (Articles 1087 to 1103 C.C.Q)
Division VIII- Loss of control of the syndicate by the developer (Articles 1104 to 1107 C.C.Q)
Division IX- Termination of co-ownership (Articles 1108 to 1109 C.C.Q)
ADMINISTRATION OF THE PROPERTY OF OTHERS
DIVISION II- FULL ADMINISTRATION OF THE PROPERTY OF OTHERS
CHAPTER III- RULES OF ADMINISTRATION
DIVISION I- OBLIGATIONS OF THE ADMINISTRATION TOWARDS THE BENEFICIARYTITLE II
NOMINATED CONTRACTS
CHAPTER I
SALE
DIVISION I - ESTABLISHMENT OF DIVIDED CO-OWNERSHIP
1038. Divided co-ownership of an immovable is established by publication of a declaration under which ownership of the immovable is divided into fractions belonging to one or several persons.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces article 441b C.C.L.C. Article 3030, which complements it, further provides that the declaration of co-ownership may only be published if the building has been subject to a cadastral plan providing for the registration of the private and common portions. The physical presence of a constructed building is not, in all circumstances, a prerequisite for filing cadastral co-ownership documents, as the situation differs depending on whether the co-ownership is horizontal or vertical.
Horizontal co-ownership is established on horizontal lots, as traditionally understood, which share common services. In such cases, the physical presence of a building is not a prerequisite for the filing of cadastral documents; it is sufficient that there is a parcel of land that is itself divided.
Vertical co-ownership, on the other hand, essentially concerns a constructed building, since, in order to establish the cadastral plan and determine the limits of the private and common portions, it is essential that the structural framework of the building be constructed. This is also reflected in article 3041.
1039. Upon the publication of the declaration of co-ownership, the co-owners as a body constitute a legal person, the objects of which are the preservation of the immovable, the maintenance and administration of the common portions, the protection of the rights appurtenant to the immovable or the co-ownership, as well as all business in the common interest. The legal person must, in particular, see to it that the work necessary for the preservation and maintenance of the immovable is carried out.
The legal person is called a syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. Its purpose is to give the co-ownership legal personality and to define the role of the legal person constituted by the syndicate formed by the community of co-owners. The syndicate is a legal person entirely governed by the Civil Code. It is not a legal person governed by the Companies Act, since using a company as a vehicle to grant legal personality to the co-ownership would have been an artifice, not only theoretically unnecessary but also difficult to implement. Indeed, the concepts of the Companies Act are poorly suited to those relating to co-ownership, and the application of its provisions could have jeopardized the survival of the syndicate and the validity of acts carried out in the name of the co-owners. Moreover, using this vehicle would have required creating multiple exceptions to the law and, additionally, retaining all the provisions concerning the organization of co-ownership, since the latter demands a structure very different from that of a company. Just consider the voting rights and the number of votes required to make certain decisions to be convinced. While in common law jurisdictions, the legislator creates a company to confer legal personality to the co-ownership, in Quebec, this goal is achieved by using the concept of a legal person provided by the new code. The use of the word syndicate to designate the community of co-owners is inspired by French law. In modern French, the primary meaning of this word refers to an association whose purpose is to defend common interests. While in Quebec this term has only applied to workers' associations, its use is much more widespread in France. There, one finds financial syndicates formed to invest in business securities, tourist initiative syndicates, service syndicates, and, in co-ownership matters, syndicates of property owners.
Comments from Condolegal.com
Article 1039 of the Civil Code of Québec was amended in December 2019 by Bill 16, by adding the clarification that a syndicate of co-owners also has the mission of ensuring that the necessary maintenance and preservation work on the building is carried out.
1040. Divided co-ownership of an immovable that is built by an emphyteuta or that is subject to superficies may be established if the unexpired term of the right, at the time of publication of the declaration, is more than 50 years.
In cases arising under the first paragraph, each co-owner, dividedly and proportionately to the relative value of his fraction, is liable for the divisible obligations of the emphyteuta or superficiary, as the case may be, towards the owner of the immovable subject to emphyteusis or superficies. The syndicate assumes the indivisible obligations.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reproduces article 441b.1, which was added to the Civil Code of Lower Canada in 1988 by the Act to amend the Civil Code concerning co-ownership and emphyteusis (S.Q., 1988, chapter 16). This article aimed to eliminate uncertainties regarding the possibility of establishing co-ownership on a building constructed on land held under emphyteusis. It sets out minimum conditions to be met, in such cases, to protect buyers. This article likewise allows the establishment of co-ownership on a building held under a superficies right. Articles 1785 and following, which establish specific rules for the sale of residential buildings, complement this article, as they require, in some cases, that the sale of a co-ownership unit be preceded by a preliminary contract and an information sheet. This sheet must, notably, indicate the emphyteusis and superficies rights affecting the building, as well as several other relevant details for a co-owner. Emphyteusis is a tool for urban land development that allows real estate projects to be carried out at lower costs, often on well-located land owned by municipalities or other entities that do not wish to alienate them. Article 1040 thus takes into account these advantages and also the fact that the buyer’s protection often lies more in adequate information about their rights and obligations than in a prohibition. Furthermore, given the absence of ownership rights in the land supporting the co-ownership building, article 1082 grants the syndicate a right of preemption to acquire the rights of the owner or the superficiary of the building, and article 1198 provides for the possibility of renewing the emphyteusis contract when it pertains to land on which a co-ownership building is erected, or when it pertains to both land and a constructed building, without the need for new buildings, plantings, or other works, apart from useful improvements.
DIVISION II- FRACTIONS OF CO-OWNERSHIP
1041. The relative value of each of the fractions of the divided co-ownership is established with reference to the value of all the fractions together, taking into account the nature, destination, dimensions and location of the private portion of each fraction, but not its use.
The relative value is determined in the declaration.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces the part of article 441l C.C.L.C. that deals with the establishment of the relative value of each fraction. The difference, however, lies in the fact that it refers not to the area of the private portion, but to its dimensions, which allows consideration of ceiling height.
1042. Those portions of the buildings and land that are owned by a specific co-owner and are for his exclusive use are called the private portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new, in that the notion of a private portion is defined here. It is defined with reference to two elements: the private portion is owned by a specific person — which contrasts with the collective ownership of undivided portions — and the use of that portion is exclusive to that person.
1043. Those portions of the buildings and land that are owned by all the co-owners and serve for their common use are called the common portions.
However, some of the portions may serve for the use of certain, or only one, of the co-owners. The rules regarding the common portions apply to the common portions that have restricted use.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. It defines the notion of common portions and distinguishes it from that of restricted-use common portions. Previous law did not make such a distinction between common portions, even though in practice many common portions were for restricted use, such as parking spaces or balconies. In fact, co-ownership or sale documents often showed ambiguity regarding the status of such portions.
1044. The following are presumed to be common portions: the ground, yards, verandas or balconies, parks and gardens, access ways, stairways and elevators, passageways and halls, common service areas, parking and storage areas, basements, foundations and main walls of buildings, and common equipment and apparatus, such as the central heating and air-conditioning systems and the piping and wiring, including that which runs through private portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
The presumption created by this article substantially reproduces article 441f C.C.B.C., which defined the concept of common portions.
1045. Partitions or walls that are not part of the foundations and main walls of a building but which separate a private portion from a common portion or from another private portion are presumed common.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reproduces article 441g C.C.L.C.
1046. Each co-owner has an undivided right of ownership in the common portions. His share of the common portions is equal to the relative value of his fraction.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces article 441d C.C.L.C.
1047. Each fraction constitutes a distinct entity and may be alienated in whole or in part; the alienation includes, in each case, the share of the common portions appurtenant to the fraction, as well as the right to use the common portions for restricted use, where applicable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces article 441c C.C.L.C.
1048. The share of the common portions appurtenant to a fraction may not, separately from the private portion of the fraction, be the subject of alienation or an action in partition.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reproduces the prior law regarding the alienation of a share in the common portions.
1049. Alienation of a divided part of a private portion is without effect unless the declaration of co-ownership and the cadastral plan have been altered prior to the alienation so as to create a new fraction, describe it, give it a separate cadastral number and determine its relative value, or to record the alterations made to the boundaries between contiguous private portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces the second paragraph of article 441p C.C.L.C.
1050. Each fraction forms a distinct entity for the purposes of property assessment and taxation.
The syndicate shall be impleaded in the case of any judicial contestation of the assessment of a fraction by a co-owner.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces article 442 C.C.L.C.
1051. Notwithstanding articles 2650 and 2662, a hypothec, any additional security accessory thereto or any prior claims existing at the time of registration of the declaration of co-ownership on the whole of an immovable held in co-ownership are divided among the fractions according to the relative value of each or according to any other established proportion.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reproduces article 441j C.C.L.C. It adds to prior law the clarification that additional security attached to a hypothec is also divided. Finally, to better reflect practice, it allows for the division to be made according to a proportion other than the relative value of each fraction.
DIVISION III- DECLARATION OF CO-OWNERSHIP
§ 1. — Content of the declaration
1052. A declaration of co-ownership comprises the act constituting the co-ownership, the by-laws of the immovable and a description of the fractions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article aims to simplify the declaration of co-ownership by not mixing the technical aspects with the general and regulatory provisions. To that end, the declaration is divided into three distinct parts: the constituting act of co-ownership, the building by-laws, and the description of the fractions. The contents of each of these parts are specified in the following articles.
1053. An act constituting the co-ownership defines the destination of the immovable, of the private portions and of the common portions.
The act also specifies the relative value of each fraction, indicating how that value was determined, the share of the common expenses and the number of votes attached to each fraction.
The act also specifies the respective powers and duties of the board of directors of the syndicate and of the general meeting of the co-owners and provides any other agreement regarding the immovable or its private or common portions, including any penal clause applicable for contravening the declaration of co-ownership.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article specifies what must be included in the constituting act of co-ownership. This act will contain general and permanent provisions governing the co-ownership: the destination of the building, the relative value of the fractions, the number of votes associated with them, etc. The provisions governing day-to-day life in co-ownership will be found in the by-laws (art. 1054). Regarding the relative value of fractions, this article requires the declarant to specify the method used to determine the relative value of each fraction, based on the criteria set out in article 1041. Knowing this method should allow co-owners to better assess whether their fraction's value has been properly calculated and, if necessary, to request a revision of the distribution of expenses and the relative value under article 1068.
Comments from Condolegal.com
Article 1053 of the Civil Code of Québec was amended in December 2019 by Bill 16. This amendment primarily serves to integrate penalty clauses into the constituting act of co-ownership. The legislator thus ends the practice of including penalty clauses in the building by-laws. Moreover, since they now form part of the constituting act, any decision to amend a penalty clause in a declaration of co-ownership must be made by the assembly of co-owners in accordance with article 1097 C.C.Q.
Finally, penalty clauses included in the building by-laws before the entry into force of this amendment are deemed to form part of the constituting act, pursuant to section 150 of Bill 16.
1054. The by-laws of an immovable contain the rules on the enjoyment, use and maintenance of the private and common portions, and those on the operation and administration of the co-ownership.
The by-laws also deal with the procedure of assessment and collection of contributions to the common expenses.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article sets out the content of the building by-laws, inspired by articles 441l and 442c of the C.C.L.C. The by-laws are intended to govern daily co-ownership matters, such as enjoyment, use, and maintenance, and may be amended more easily than the constituting act. The concept of building by-laws also exists in residential leases (arts. 1894 and 1897).
1055. A description of the fractions contains the cadastral description of the private portions and common portions of the immovable.
Such a description also contains a description of the real rights charging the immovable or existing in its favour, other than hypothecs and additional security accessory thereto.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article specifies the content of the description statement, which is technical in nature and typically voluminous.
1056. No declaration of co-ownership may impose any restriction on the rights of the co-owners except restrictions justified by the destination, characteristics or location of the immovable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article consolidates former articles 441o and 441p of the C.C.L.C.
1057. The by-laws of the immovable may be set up against the lessee or occupant of a private portion upon his being given a copy of the by-laws or the amendments to them by the co-owner or, if not by him, by the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article clarifies previous law, addressing uncertainty over whether the declaration of co-ownership was enforceable against tenants. It ensures that all occupants are subject to the same rules regarding the enjoyment of the premises, while safeguarding the tenant’s rights by requiring delivery of the by-laws. The co-owner or the syndicate may provide the by-laws to the tenant. In relation to tenants, the co-ownership by-laws serve the same function as building by-laws under article 1894 C.C.L.C.
1058. Unless express provision is made therefor in the act constituting the co-ownership, no fraction may be held by several persons each having a periodic and successive right of enjoyment in the fraction, nor may a fraction be alienated for that purpose.
Where the act makes provision for a periodic and successive right of enjoyment, it shall indicate the number of fractions that may be held in this way, the occupancy periods, the maximum number of persons who may hold these fractions, and the rights and obligations of the occupants.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article introduces a new ownership concept known as time-sharing or multiple ownership. It allows multiple persons to enjoy the same unit on a rotating basis, commonly used in vacation resorts. The main goal of the article is not to regulate time-sharing, but to require that any such arrangement be clearly stated in the constituting act so buyers can make informed decisions. This article is complemented by paragraph 3 of article 1098 C.C.Q., which imposes a specific majority for amending the declaration to allow such ownership. It is also supported by provisions on the sale of residential immovables requiring developers to provide documents before the sale.
§ 2. — Registration of the declaration
1059. A declaration of co-ownership, and any amendments to the act constituting the co-ownership or the description of the fractions, shall be in the form of notarial act en minute.
The declaration shall be signed by all the owners of the immovable, by the emphyteuta or the superficiary, if any, and by all the creditors holding hypothecs on the immovable; amendments are signed by the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
The first paragraph states the form the declaration must be done; based on article 441m C.C.L.C. It differs from it, however, since it requires the notarial minute form only for amendments to the constituting act and description of the fractions. In order to facilitate the administration of the co-ownership, the modification of the building regulations can be made without this formality. The second paragraph states who must sign the declaration, adapting and expanding the second paragraph of 441m C.C.L.C. Finally, unlike article 441m C.C.L.C., which required the signature of privileged creditors, the article does not require that of priority creditors.
1060.The declaration and any amendments to the act constituting the co-ownership or the description of the fractions are filed exclusively in French at the Land Registry Office. The declaration is registered in the land register under the registration numbers of the common portions and the private portions. The amendments are registered under the registration number of the common portions only, unless they directly affect a private portion. However, amendments to the by-laws of the immovable must be made expressly, in minutes or in a resolution in writing of the co-owners, and it is sufficient for such amendments to be filed in the register held by the syndicate in accordance with article 1070.The amendments must be made exclusively in French.
The emphyteuta or superficiary, if any, shall give notice of the registration to the owner of the immovable under emphyteusis or on which superficies has been established.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article concerns the publication of the declaration of co-ownership and the amendments made to the constituting act of co-ownership and the description of the fractions. It is inspired by article 441m C.C.L.C. However, it simplifies the registration of rights, as amendments to the constituting act and to the descriptive statement will be registered only under the registration number of the common portions, unless they directly affect a private portion. The rule in the second paragraph aims to inform the owner of an immovable that is subject to an emphyteusis or upon which a superficies has been established of the existence of the co-ownership.
Article 1060 of the Civil Code of Québec was amended in December 2019 by Bill 16. This amendment specifies that any modification to the building by-law must be made expressly, in minutes or in a written resolution of the co-owners, which must be filed in the register of co-ownership, in accordance with article 1070 C.C.Q. This amendment must be read in conjunction with an amendment made to article 1096 C.C.Q., to the effect that any decision aimed at modifying the building by-law must be made by a majority of votes of the co-owners present or represented at the general meeting of co-owners. The purpose of this is to set aside a jurisprudence that had introduced the notion of tacit amendment to the building by-law of a declaration of co-ownership, based on the past behavior of co-owners or the informal nature of the syndicate’s management practices.
Bill 16 also specifies, in article 157, that these amendments to articles 1060 and 1096 C.C.Q. are declaratory in nature, meaning that not only do they apply prospectively, but they also reflect the intent that the legislator has always had for these provisions. This does not nullify the judicial decisions rendered in various cases that applied the concept of tacit amendment, but those decisions can no longer be used as a reference on this issue.
Finally, article 1060 of the Civil Code of Québec was amended in June 2022 by Bill 96. This bill constitutes a major amendment to the Charter of the French Language (Act 101), which had been adopted in 1977. The declaration, as well as amendments made to the constituting act of co-ownership and to the description of fractions, must be presented exclusively in French at the Land Registry Office. This requirement is reinforced by amendments made to articles 2984 and 3006 of the Civil Code of Quebec, which notably state that "Registration applications shall be drafted exclusively in French." The land registrar would thus be entitled to refuse the publication of any act drafted in whole or in part in a language other than French. However, article 196 of Bill 96 still allows the filing at the Land Registry Office of an act that modifies or corrects a declaration of co-ownership that had been drafted in English and published before the enactment of Bill 96 (June 1th, 2022).
1061. The registration of an act concerning a private portion is valid with regard to the share of the common portions appurtenant to it, without any requirement to make an entry under the registration number of the common portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article simplifies the procedures for registering rights at the Land Registry Office.
1062. The declaration of co-ownership binds the co-owners, their successors and the persons who signed it, and produces its effects towards them from the time of its registration.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces articles 441m and 441n of the C.C.L.C.
DIVISION IV- RIGHTS AND OBLIGATIONS OF CO-OWNERS
1063. Each co-owner has the disposal of his fraction; he has free use and enjoyment of his private portion and of the common portions, provided he complies with the by-laws of the immovable and does not impair the rights of the other co-owners or the destination of the immovable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, concerning the co-owner’s rights over their fraction, reproduces article 441h of the C.C.B.C. However, it specifies the existence of an additional restriction on the rights of use and enjoyment of the private and common portions: the obligation to comply with the by-laws of the co-ownership.
1064. Each co-owner contributes to the common expenses in proportion to the relative value of his fraction. However, only co-owners who have the use of common portions for restricted use contribute to the expenses related to the maintenance and the ordinary repairs of those portions.
The declaration of co-ownership may determine a different apportionment of the co-owners’ contribution to the expenses for major repairs to common portions for restricted use and for the replacement of those portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article establishes the obligation for co-owners to contribute to the expenses arising from the co-ownership and the operation of the immovable, as well as to the contingency fund established under article 1071, and it specifies the basis for such contribution. It must be read in conjunction with article 1041, which sets out the criteria for determining the relative value of a fraction, and article 1068, which allows a co-owner to request a review of the distribution of common expenses and the relative value of fractions. The purpose of the article is to prevent, as was previously allowed under article 441k C.C.B.C., the declarant from arbitrarily setting the common expenses—especially by assigning low contributions to fractions held or sold to friends or family members—to the detriment of the collective interests of the co-owners.
Comments from Condolegal.com
Article 1064 of the Civil Code of Quebec was amended in June 2018 following additions introduced by Bill 141, in line with the new obligation for syndicates of co-owners to establish a self-insurance fund, as provided under the newly created article 1071.1 of the Civil Code of Quebec. This amendment came into force on April 15, 2022.
However, article 1064 was again amended in December 2019 by Bill 16. It now includes within the expression “common expenses” both the costs related to the maintenance and day-to-day administration of the syndicate, and the co-owners’ contributions to the contingency fund and the self-insurance fund.
Other amendments to article 1064 serve to clarify the contribution to expenses for co-owners benefiting from common portions for restricted use, particularly in regard to the maintenance and minor repairs of these common portions. The article further adds that the declaration of co-ownership may provide for a different distribution of contributions for major repairs and replacement of these restricted-use common portions.
1064.1 Each co-owner shall take out third person liability insurance the minimum compulsory amount of which is determined by government regulation.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com
Article 1064.1 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. It requires every co-owner to take out civil liability insurance. The minimum coverage amount was established by government regulation and is set at $1 million when the co-ownership comprises fewer than 13 units (residential or business), and $2 million when the co-ownership includes 13 units or more. This obligation came into effect on October 15, 2020.
1065. A person who acquires a fraction, by whatever means, including the exercise of a hypothecary right, shall notify the syndicate within 15 days.
A co-owner who leases his private portion shall, within the same time, notify the syndicate. The co-owner shall give the name of the lessee, the term of the lease and the date on which he gave the lessee a copy of the by-laws of the immovable. The same applies, with the necessary modifications, where the private portion is otherwise occupied.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article must be read in conjunction with article 1066, which allows the syndicate to send certain notices to the tenant; article 1057, which requires the syndicate to provide the tenant with a copy of the building by-laws; and article 1079, which allows the syndicate to request the termination of a lease under certain conditions.
Comments from Condolegal.com:
Article 1065 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment introduces, in its first paragraph, a formal obligation for any new acquirer of a fraction in the co-ownership to notify the syndicate within 15 days of any acquisition of a co-ownership fraction, including acquisitions following the exercise of a hypothecary right.
The second paragraph of article 1065 clarifies the obligations of a co-owner toward the syndicate in cases where the private portion is rented out or occupied by a third party under an arrangement other than a lease (for example, a loan for use). This amendment is to be read in conjunction with the changes set out in articles 1066 and 1079 C.c.Q.
1066. No co-owner may interfere with the carrying out, even inside his private portion, of work required for the preservation of the immovable decided upon by the syndicate or of urgent work.
Where a private portion is leased, the syndicate gives the lessee, where applicable, the notices prescribed by articles 1922 and 1931 regarding improvements and work.Where a private portion is occupied otherwise than by being leased, the syndicate gives the occupant a written notice indicating the nature of the improvements and of the non-urgent work, the date on which work is to begin and an estimate of its duration and, where required, the necessary period of vacancy.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, in its first paragraph, essentially reflects previous law but adds a clarification stating that no co-owner may obstruct the execution, within their private portion, of urgent work that could not be decided by the general meeting of co-owners due to lack of time. According to the second paragraph, when the private portion is rented, the syndicate may give certain notices to the tenant. These are essentially the same notices that the lessor must provide to the tenant in the case of major improvements or repairs. This clarification is intended to prevent a tenant from opposing such work on the grounds that they did not receive the notice required under articles 1922 and 1931. Such a situation could arise, for example, when the co-owner-lessor is outside Québec or otherwise unavailable.
Comments from Condolegal.com:
Article 1066 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment extends its application beyond lease situations. It also seeks to protect the borrower (in a loan for use) of a private portion, in the event that work must be carried out in that portion, by requiring the syndicate to provide them with certain notices and information. This amendment should be read in conjunction with the changes set out in articles 1065 and 1079 C.C.Q.
1067. A co-owner who, as a result of work carried out, suffers injury in the form of a permanent diminution in the value of his fraction, a grave disturbance to enjoyment, even if temporary, or through deterioration, is entitled to obtain an indemnity from the syndicate if the syndicate ordered the work or, if it did not, from the co-owners who did the work.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article essentially reproduces the second paragraph of article 442l C.C.L.C., which concerns the prejudice suffered by a co-owner due to the execution of certain work. However, it clarifies that the responsibility for compensation may lie either with the syndicate or with certain co-owners, depending on whether the work was requested by the syndicate or not.
1068. Every co-owner may, within five years from the day of registration of the declaration of co-ownership, apply to the court for a revision, for the future, of the relative value of the fractions and of the apportionment of the common expenses.
The right to apply for a revision may be exercised only if there exists, between the relative value assigned to a fraction or the share of common expenses allocated thereto and the value or share that should have been established, according to the criteria provided in the declaration of co-ownership, a difference in excess of one-tenth in favour of another co-owner or to the prejudice of the applicant co-owner.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new law. Inspired by French law, it allows a co-owner, under certain conditions, to request a revision of the distribution of expenses and the relative value of their fraction if the discrepancy between these two reference points exceeds one tenth. The mathematical standard it introduces aims to prevent overly significant variations in the assessment of that discrepancy; it is also easier to apply and thus facilitates judicial revision. The article must be read in conjunction with articles 1041 and 1064 of the new Code. It therefore fills a gap, as it enables a co-owner to correct inequalities in the distribution of expenses—something that was not permitted under the previous law, due in part to article 441k C.C.L.C.
1068.1. A person who sells a fraction shall, in due time, give the promisor a certificate of the syndicate attesting to the condition of the immovable held in co-ownership, whose form and content are determined by government regulation.
For that purpose, the syndicate gives the certificate to a co-owner who so requests, within 15 days.
Those obligations exist from the appointment of a new board of directors, after the developer loses control of the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1068.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This new provision requires the seller of a fraction to provide the prospective buyer with a certificate from the syndicate regarding the status of the co-ownership. The syndicate has 15 days to issue such a certificate upon request by the co-owner. This obligation applies only from the date of the appointment of the new board of directors, following the loss of control by the developer over the syndicate. This article has not yet come into force.
1068.2.A person who promises to buy a fraction may request the syndicate to provide him with the documents or information concerning the immovable and the syndicate that will enable him to give enlightened consent. The syndicate is bound, subject to the provisions relating to the protection of privacy, to provide them with diligence to the promisor, at the latter’s expense.
The syndicate shall send the owner of the fraction or his successors the documents or information it has provided to the promisor.Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1068.2 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This new provision requires the syndicate to provide the prospective buyer with the documents or information necessary to make an informed decision. The legislator specifies that such documents and information must be provided diligently to the prospective buyer, at their expense, subject to the provisions relating to privacy—particularly articles 35 to 41 of the Civil Code of Quebec. The syndicate must also inform the relevant owner of all documents or information that have been disclosed to the prospective buyer, so that all parties have access to the same information.
1069. A person who acquires a fraction of an immovable under divided co-ownership, by whatever means, including the exercise of a hypothecary right, is bound to pay all common expenses due with respect to that fraction, with interest, at the time of the acquisition.
A person contemplating the acquisition of such a fraction may request from the syndicate of co-owners a statement of the common expenses due with respect to the fraction and the syndicate is thereupon authorized to provide the statement to him, subject to the syndicate giving prior notice to the owner of the fraction or his successors; in such a case, the prospective acquirer is bound to pay the common expenses only if the statement is provided to him by the syndicate within 15 days of the request.
The statement provided is adjusted to the last annual budget of the co-owners.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. Its purpose is to allow the buyer of a co-ownership fraction to know the status of common expenses owed by the selling co-owner. It is a protective measure for the buyer.
Note from authors Yves Joli-Cœur and Yves Papineau on the Minister of Justice’s comment:
The amendments made to article 1069 C.C.Q., which came into force in June 2002, rendered obsolete the previous case law concerning arrears of common expenses in cases of repossession by a hypothecary creditor. Indeed, that case law generally held that hypothecary creditors were only responsible for unpaid common expenses as of the judgment transferring ownership of the fraction or the judicial sale, which often resulted in a loss for the syndicate during the period the co-owner was in default. Faced with such an inequitable situation, the legislator introduced a new rule that must be considered of public order, meaning it prevails over any contrary provision in the declaration of co-ownership. In our view, clauses in declarations of co-ownership that exempt hypothecary creditors from the obligation to pay arrears of common expenses on the fraction they acquire through the exercise of their hypothecary rights are now inoperative.
Comments from Condolegal.com:
Article 1069 of the Civil Code of Quebec was further amended in December 2019 by Bill 16. This amendment clarifies the legal situation regarding the payment of common expenses by the buyer at the time of acquisition. It is mandatory for the buyer to pay off all common expenses, including any accrued interest. This addition also clarifies the French version of the article, which previously differed from the English version.
DIVISION V- RIGHTS AND OBLIGATIONS OF THE SYNDICATE
1070. Among the registers of the co-ownership, the syndicate keeps at the disposal of the co-owners a register containing the name and mailing address of each co-owner; the register may also contain other personal information concerning a co-owner or another occupant of the immovable if he expressly consents to it. In addition, the register contains the minutes of the meetings of the co-owners and of the board of directors, the resolutions in writing, the by-laws of the immovable and any amendments to them, and the financial statements.
The register also contains the declaration of co-ownership, the copies of contracts to which the syndicate is a party, a copy of the cadastral plan, the plans and specifications of and location certificates for the building if they are available, the maintenance log, the contingency fund study and all other documents and information relating to the immovable and the syndicate or prescribed by government regulation.
In addition, the register contains a description of the private portions that is sufficiently precise to allow any improvements made by co-owners to be identified. The same description may be valid for two or more portions having the same characteristics.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. It serves two purposes: first, to require the syndicate to maintain registers and archives and to preserve important documents related to the co-ownership that are of interest to the legal entity that is the syndicate; and second, to allow co-owners access to co-ownership documents, including the building by-laws.
Comments from Condolegal.com:
Article 1070 of the Civil Code of Quebec was amended in June 2018 by Bill 141, 1st sess., 41st Leg., through the addition of a third paragraph. This amendment requires the syndicate to keep in the co-ownership register (and make available to the co-owners) a description of the private portions that allows identification of improvements made by the co-owners. This requirement is linked to the obligation to insure the entire immovable, including the private portions, excluding said improvements (article 1073 of the Civil Code of Quebec). This amendment:
Furthermore, article 1070 was amended again in December 2019 by Bill 16, replacing the first two paragraphs. The legislator clarified the list of information the syndicate must file in the register and make available to co-owners, including:
Bill 41, adopted on March 17, 2020, introduced the following transitional provision in its section 204 regarding the adoption of the description of private portions for identifying improvements made by co-owners: “The syndicate of a divided co-ownership established before June 13, 2018, and not controlled by the developer, must submit for approval to the co-owners the first description of the private portions as provided for in the third paragraph of article 1070 of the Civil Code. This description must be approved at a meeting by co-owners representing more than half of the votes of co-owners present or represented, by June 13, 2020.” Effects of the COVID-19 Pandemic: The syndicate’s obligation to prepare the description of private portions and submit it for approval proved difficult, even impossible, in the context of the pandemic that affected Québec as it did elsewhere.
On May 5, 2020, Minister Danielle McCann signed the Ministerial Order 2020-032 under the Public Health Act. This order allowed, for divided co-ownerships established before June 13, 2018, and not controlled by the developer, the description of private portions to be established by the board of directors. This description is deemed valid until it is ratified or amended by a majority of votes of the co-owners present or represented at the first meeting held after the decision.
1070.1. It must be possible to consult the register and documents kept at the disposal of the co-owners in the presence of a director or a person designated for that purpose by the board of directors, at reasonable hours and according to the rules provided in the by-laws of the immovable. Every co-owner is entitled to obtain a copy of the content of the register and of any such documents for a reasonable cost.
A government regulation may prescribe other conditions, rules or restrictions relating to consultation of the register, of the documents to be kept at the disposal of the co-owners, and of the information they contain.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1070.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. It sets out the rules governing access to and consultation of the co-ownership register.
1070.1.1. The register and documents kept at the disposal of the co-owners, as well as any document drawn up by the syndicate for a co-owner, must be drawn up in French.
The Office québécois de la langue française sees to the application of the first paragraph as if it were a provision of the Charter of the French language (chapter C-11).
Comments from Condolegal.com:
Article 1071.1.1 was introduced into the Civil Code of Qebec by Bill 96. This bill represents a major amendment to the Charter of the French Language (Act 101), originally adopted in 1977. The article now provides that the documents forming part of the register, as well as those transmitted to co-owners, must be written in French. This new provision therefore requires every syndicate of co-owners to use the French language in the administration of a co-ownership.
Case law citing this article: consult the Annotated Civil Code on Qweri
1070.2.The board of directors causes a maintenance log to be established for the immovable which describes, in particular, maintenance done and maintenance required. The board of directors keeps the log up to date and has it reviewed periodically.
The form and content of the maintenance log and the manner in which it is kept and reviewed, as well as the persons who may establish and review it, are determined by government regulation.The standards provided in the regulation may vary according to the characteristics of an immovable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1070.2 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. The addition of this article to the chapter on the rights and obligations of syndicates imposes on the syndicate the obligation to establish a maintenance logbook for the immovable. Trough the adoption of Bill 31, the legislator amended Article 1070.2 to allow the government, by regulation, to set standards for maintenance logs of buildings held in divided co-ownership, which may vary depending on the characteristics of the building. These characteristics could include, for example, the number of units, its components, its year of construction, or any other relevant factor that would justify adapting the maintenance requirements. This approche seeks to meet the unique needs of each co-ownership property, ensuring that maintenance standards are relevant and appropriate to its specific situation,
This obligation will come into force upon the adoption of a government regulation that will determine the form, content, and procedures for maintaining and updating the logbook, as well as designate the persons authorized to create and revise it.
1071.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.
The board of directors obtains a contingency fund study establishing the sums necessary for the fund to be sufficient to cover the estimated cost of major repairs and of replacement of common portions. The study is conducted in accordance with the standards established by a government regulation, which designates among other things the professional orders whose members are authorized to conduct such studiesand determines the intervals at which a new study must be obtained by the board of directors. The standards may vary according to the characteristics of an immovable.
The sums to be paid into the contingency fund are fixed on the basis of the recommendations made in the contingency fund study and taking into account ongoing developments in the co-ownership, in particular the amounts available in the contingency fund.
Until the developer obtains the contingency fund study, the sums to be paid into the fund must correspond to 0.5% of the reconstruction cost of the immovable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993):
This article is new. It fills a gap in the previous law by requiring the syndicate to establish a contingency fund to cover major repairs that the immovable may require. Its purpose is to ensure the preservation of the immovable. The article specifies that the fund is to be established based on the estimated cost of major repairs and the replacement cost of the common portions. This cost will determine the co-owners’ contributions to the fund. The article also states that the contingency fund must be liquid and readily available in the short term, in order to prevent the syndicate from making long-term investments and thus depriving itself of necessary liquidity.
Note from Condolegal.com on the Minister of Justice’s comments:
The comments from the Minister of Justice, issued in anticipation of the Civil Code of Quebec coming into force on January 1, 1994, have become partially obsolete due to the amendments made to article 1071 in 2019 by Bill 16. We retain them for historical reference only.
Comments from Condolegal.com:
Article 1071 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment notably requires syndicates to obtain a contingency fund study and to update it every five years. The study must be conducted by a member of a professional order designated by government regulation.
The amendment also allows greater flexibility in the investment of the amounts held in the contingency fund, while specifying that the capital must be guaranteed. It also clarifies that the use of the fund is determined by the board of directors, meaning it is no longer necessary to consult the general meeting before using amounts from the contingency fund. Through the adoption of Bill 31, the legislator once again amended Article 1071 of Civil Code of Quebec with respect to the frequency at which contingency fund studies must obtained for buildings held in divided co-ownership. The requirement to obtain such a study every five year was removed, and the frequency is nos to be determined by a government regulation. The purpose of this amendment is to allow the standards set out in the regulation to vary based on the characteristics of a building, its components, its year of construction, or any other relevant factor that would justify adapting the rules regarding contingency fund studies.
The section of article 1071 C.C.Q. highlighted in salmon color has not yet come into force.
Terms of entry into force:
1071.1.The syndicate establishes a self-insurance fund which is liquid and available on short notice. The syndicate is the owner of the fund.
The self-insurance fund is to be used to pay the deductibles provided for by the insurance taken out by the syndicate.
It is also to be used to make reparation for injury caused to property in which the syndicate has an insurable interest, where the contingency fund or an insurance indemnity cannot provide for such reparation.
The self-insurance fund is established on the basis of those deductibles and a reasonable additional amount to provide for the other payments for which the fund is to be used.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com
Article 1071.1 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. This article requires syndicates of co-owners to establish a fund specifically allocated to cover amounts not reimbursed by the syndicate’s insurance, such as deductibles.
This separate fund shares similar characteristics with the contingency fund. It is owned by the syndicate and cannot be seized by a creditor who has obtained a judgment against the syndicate, except where the judgment is for the recovery of an amount for which the self-insurance fund is intended (see article 1078 of the Civil Code of Quebec). This provision came into force on April 15, 2022. In this respect, it is important to note that the government established, by regulation on April 15, 2020, the terms under which the co-owners' minimum contribution to the fund is determined. The fund must be equal to the highest deductible (article 2 of the regulation) among all insurance coverages held by a syndicate. For the purpose of this calculation, deductibles for earthquakes and floods are excluded.
1072. Each year, the board of directors, after consultation with the general meeting of the co-owners, fixes their contribution for common expenses, after determining the sums required to meet the expenses arising from the co-ownership and the operation of the immovable, and the amounts to be paid into the contingency fund.
The contribution of the co-owners to the contingency fund is at least 5% of their contribution for common expenses. In fixing the contribution, the rights of any co-owner in the common portions for restricted use may be taken into account.
The syndicate, without delay, notifies each co-owner of the amount of his contribution and the date when it is payable.
On April 15th, 2022, article 1072 shall read as follows:
1072. Each year, the board of directors, after consultation with the general meeting of the co-owners, fixes their contribution for common expenses,after determining the sums required to meet the expenses arising from the co-ownership and the operation of the immovable, and the amounts to be paid into the contingency fund and the self-insurance fund.
The Government determines, by regulation, the terms according to which the co-owners’ minimum contribution to the self-insurance fund is determined.
The syndicate, without delay, notifies each co-owner of the amount of his contribution and the date when it is payable.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article generally reflects the previous law concerning co-owners’ contributions to common expenses. It takes into account the new provisions establishing the contingency fund and sets the minimum percentage of contributions to that fund. The creation of this fund, previously left to the discretion of the directors, is now mandatory under the new article 1071.
Comments from Condolegal.com
Article 1072 of the Civil Code of Quebec was amended in June 2018 following the additions introduced by Bill 141, in line with the obligation for syndicates to establish a self-insurance fund, as provided in article 1071.1. The terms for determining the co-owners’ minimum contribution to the self-insurance fund were set by government regulation. This amendment came into force on April 15, 2022.
The article was amended again in December 2019 by Bill 16, removing the previous paragraph which provided that the co-owners’ contribution to the contingency fund must be at least 5% of their contribution to the common expenses. This removal is related to the introduction of the obligation to conduct contingency fund studies. This amendment has not yet come into force.
1072.1. The board of directors shall consult the general meeting of the co-owners before deciding on any special contribution to the common expenses.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com
Article 1072.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. It specifies that the general meeting of co-owners must be consulted before any special assessment is levied.
1073.The syndicate has an insurable interest in the whole immovable, including the private portions. It shall take out insurance against ordinary risks, such as fire and theft, on the whole of the immovable, except improvements made by a co-owner to his portion. The amount insured is equal to the replacement cost of the immovable.
The syndicate shall also take out third person liability insurance.
As of April 15th, 2021, Article 1073 reads as follows:
1073.The syndicate has an insurable interest in the whole immovable, including the private portions. It shall take out insurance against ordinary risks providing for a reasonable deductible and covering the whole of the immovable, except improvements made by a co-owner to his portion,where they can be identified in relation to the description of that portion. The amount insured must cover the reconstruction of the immovable in accordance with the standards, usage and good practice applicable at that time; the amount must be evaluated at least every five years by a member of a professional order designated by government regulation.
The syndicate shall also take out third person liability insurance for itself and for the members of its board of directors and the manager as well as for the president and the secretary of the general meeting of the co-owners and the other persons responsible for seeing to its proper conduct.
The Government may, by regulation, determine cases in which a deductible is considered unreasonable. In addition, an insurance contract entered into by a syndicate covers, by operation of law, at least the risks prescribed by government regulation, unless the policy or a rider sets out, expressly and in clearly legible characters, which of those risks are excluded. The regulations may establish categories of buildings, in particular on the basis of their size, value or geographic location.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reproduces and expands upon article 442a of the C.C.L.C. Unlike the former law, which left it to the declarant or administrators to decide whether to obtain insurance, this article makes it mandatory. Its purpose is to avoid legal and practical issues associated with insufficient insurance coverage, liability for repairs in the event of damage, disputes between experts regarding the assessment of losses, and so forth. This article does not affect the fact that a co-owner always has an insurable interest in their fraction under article 2481. That article states that a person has an insurable interest in a thing if they may suffer a direct and immediate loss from its destruction. A co-owner may therefore insure improvements made to their unit and the movable property within it. They may even purchase insurance covering the entire private portion, which could result in dual coverage over the same property. In such cases, as stated in article 2496, each insurance policy would apply proportionally to the total coverage in force, up to the amount of the loss.
Note from Condolegal.com on the Minister’s comments:
The Minister of Justice’s comments, issued in anticipation of the Civil Code of Quebec coming into force on January 1, 1994, have become partially obsolete following the significant amendments to article 1073 introduced by Bill 141 in 2018. They are retained for historical reference only.Comments from Condolegal.com:
Article 1073 of the Civil Code of Quebec was substantially amended in June 2018 following the changes introduced by Bill 141. It clarifies several of the syndicate’s insurance obligations while introducing new ones.
Regarding property insurance for the immovable:
Regarding third-party liability insurance:
Bill 41, adopted on March 17, 2020, amended the wording of the first sentence of the third paragraph to clarify that the government may, by regulation, “determine cases” in which a deductible would be considered unreasonable, rather than “specify the criteria”.
1074. A co-owner’s non-compliance with a condition of the insurance contract may not be set up against the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, which complements the previous one, renders unenforceable against the syndicate any breach of an insurance contract condition by a co-owner.
1074.1. When a loss occurs which falls under the coverage provided for by a property insurance contract entered into by the syndicate and the syndicate decides not to avail itself of the insurance, it shall with dispatch see that the damage caused to the insured property is repaired.
A syndicate that does not avail itself of insurance may not sue the following persons for the damages for which it would otherwise have been indemnified by the insurance:
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com (1993)
Article 1074.1 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. This article provides that if the syndicate of co-owners decides not to invoke its property insurance following a loss, it is nonetheless obligated to carry out the repairs diligently.
Furthermore, if the syndicate does not make a claim under its insurance policy, it cannot sue a co-owner (or a member of their household), nor any person for whom it is required to obtain liability insurance, for damages that would otherwise have been covered by its insurance.
1074.2.The sums incurred by the syndicate to pay the deductibles and make reparation for the injury caused to property in which the syndicate has an insurable interest may not be recovered from the co-owners otherwise than by their contribution for common expenses, subject to damages it can obtain from the co-owner bound to make reparation for the injury caused by the co-owner’s fault and, in the cases provided for in this Code, for the injury caused by the act, omission or fault of another person or by the act of things in the co-owner’s custody.
Any stipulation which is inconsistent with the provisions of the first paragraph is deemed unwritten.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com (1993)
Article 1074.2 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. This article specifies that insurance deductibles and amounts spent to repair property damage not covered by the insurance contract—provided the syndicate has an insurable interest—are considered common expenses.
Each co-owner must therefore contribute to these costs in proportion to the relative value of their fraction, in accordance with article 1064 (except with respect to common portions for restricted use).
A syndicate’s recourse against a co-owner at fault is thus limited to the damages caused by that co-owner’s fault.
This provision is declared to be of public order, meaning that any contrary stipulation in the declaration of co-ownership is deemed null and void. This addition came into force on December 13, 2018.
With the adoption of Bill 41, the Quebec legislature amended article 1074.2 to expand the co-owner’s liability beyond their own fault, extending it to damages caused by the actions or fault of another person, as well as by the property under the co-owner’s custody.
1074.3.Where insurance against the same risks and covering the same property has been taken out separately by the syndicate and a co-owner, the insurance taken out by the syndicate constitutes primary insurance.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
Article 1074.3 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. This article clarifies that when both the syndicate’s insurance and a co-owner’s insurance apply, the syndicate’s policy is considered the primary insurance— which means it is the first to respond to the loss before the co-owner’s policy.
This clarification was deemed necessary to avoid conflicts between insurance experts and delays in the payment of indemnities needed to carry out repairs.
1075. The indemnity owing to the syndicate following a substantial loss is, notwithstanding article 2494, paid to the trustee appointed in the act constituting the co-ownership or, where none has been appointed,to a trustee who must be designated without delay by the syndicate.
The indemnity shall be used to repair or rebuild the immovable, unless the syndicate decides to terminate the co-ownership, in which case the trustee, after determining each co-owner’s share of the indemnity according to the relative value of his fraction, pays the prior and hypothecary creditors out of that share according to the rules in article 2497. For each of the co-owners, he remits the balance of the indemnity to the liquidator of the syndicate with his report. A government regulation may determine the criteria for characterizing a loss as substantial.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article determines to whom the insurance indemnity is paid and how it must be used. Under previous law, the lender had the right to be reimbursed for their loan from the indemnity in the event of a loss. Hypothecary deeds typically included a fire and property destruction insurance clause requiring the borrower to insure the mortgaged property and, in the event of a loss, to remit the indemnity—up to the amount of the hypothecary loan—to the lender. Because of such clauses, the loan was considered a secure investment, notably under the Bank Act (S.R.C., c. B-1), the Savings and Credit Unions Act (CQLR, c. C-4.1), and the Insurers Act (CQLR, c. A-32), since even if the building itself was lost, the essential consideration for the loan remained intact, being replaced by the insurance indemnity. The new Code does not retain this rule. Instead, the trustee must use the indemnity for the repair or reconstruction of the immovable, and since the property must be insured for its replacement cost, the lender’s security is preserved. Furthermore, nothing prevents a hypothetical creditor from requiring the borrower to name them as trustee in the declaration of co-ownership. Where there are several hypothecary creditors, either multiple trustees may be appointed or a single trustee may be designated to ensure that no legal construction or renovation hypothecs are registered and to handle disbursements accordingly.
Comments from Condolegal.com:
Article 1075 of the Civil Code of Quebec was amended in June 2018 following the changes introduced by Bill 141, to specify that in the absence of a designated insurance trustee in the declaration of co-ownership (which is very common), the syndicate must appoint one without delay in the event of a significant loss.
Additionally, a government regulation may be adopted to establish criteria for determining what constitutes a “significant loss.”
1075.1. An insurer may not, despite article 2474, be subrogated to the rights of any of the following persons against another such person:
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1075.1 was introduced into the Civil Code of Quebec in June 2018 by Bill 141. This article sets out the principle that an insurer may not be subrogated against the persons identified therein.
Exceptions to this rule are provided: subrogation is permitted in cases involving bodily or moral injury, or where the damage results from intentional fault or gross fault.
1076.The syndicate may, if authorized to do so, acquire or alienate fractions, common portions or other real rights.
A private portion does not cease to be private by the fact that the fraction is acquired by the syndicate, but the syndicate has no vote for that portion at the general meeting and the total number of votes that may be cast is reduced accordingly.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article essentially reproduces articles 441w and 441x of the C.C.L.C., which relate to the acts of acquisition of fractions by administrators.
1076.1.The syndicate may grant a movable hypothec only after obtaining the authorization of the general meeting of the co-owners.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1076.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This article establishes the obligation for the syndicate to obtain authorization from the general meeting of co-owners before granting a movable hypothec.
1077. The syndicate is liable for damage caused to the co-owners or third persons by faulty design, construction defects or lack of maintenance of the common portions, without prejudice to any recursory action.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article essentially reproduces article 441z of the C.C.L.C.
1078.A judgment condemning the syndicate to pay a sum of money is executory against the syndicate and against each of the persons who were co-owners at the time the cause of action arose, proportionately to the relative value of his fraction.
The judgment may not be executed against the contingency fund, except for a debt arising from the repair of the immovable or the replacement of common portions, or against the self-insurance fund, unless the judgment is in respect of the recovery of an amount for the payment of which the fund is to be used.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article essentially reproduces article 442 of the C.C.L.C., concerning judgments ordering directors to pay a sum of money. However, it adds that such a judgment cannot be executed against the contingency fund unless the judgment was issued for a debt arising from the repair of the immovable or the replacement of common portions. Although the community of co-owners has legal personality, it is appropriate to maintain both the liability of the co-owners and that of the syndicate, in order to avoid undermining the syndicate’s creditworthiness. The syndicate is a management body without a profit-making purpose; thus, if it is condemned, it may not have the necessary funds to satisfy the judgment. As for the contingency fund, since it is allocated to the repair and replacement of the immovable, it is necessary to limit its seizability—otherwise, there is a risk that the fund would be used primarily to pay miscellaneous debts. This exception to seizability should not cause significant harm to creditors, given the insurance obligations that are also imposed on the syndicate.
Comments from Condolegal.com:
Article 1078 of the Civil Code of Quebec was amended in June 2018 following the changes introduced by Bill 141, to specify that the self-insurance fund cannot be seized by a creditor who has obtained a judgment against the syndicate, except when the judgment is for the recovery of an amount for which the self-insurance fund is intended.
1079. The syndicate may demand the resiliation of the lease of a private portion, after notifying the lessor and the lessee, where the non-performance of an obligation by the lessee causes serious injury to a co-owner or to another occupant of the immovable.
The syndicate may, for the same reasons, after notifying the co-owner and the borrower, demand the termination of a loan for use of a private portion.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, which is new law, grants a third party representing the community of co-owners the right to request the termination of a lease to which they are not a party. It is based on the particular nature of co-ownership. Since a tenant's behaviour can endanger the co-ownership lifestyle, the syndicate must be able to intervene in the collective interest—especially if the lessor is unable or unwilling to act.
Comments from Condolegal.com:
Article 1079 of the Civil Code of Quebec was amended in December 2019 by Bill 16 to clarify that a loan for use of a unit may be terminated on the same grounds as a lease may be rescinded.
1080.Where the refusal of a co-owner to comply with the declaration of co-ownership causes serious and irreparable injury to the syndicate or to one of the co-owners, either of them may apply to the court for an injunction ordering the owner to comply with the declaration.
If the co-owner violates the injunction or refuses to obey it, the court may, in addition to the other penalties it may impose, order the sale of the co-owner’s fraction, in accordance with the provisions of the Code of Civil Procedure (chapter C-25.01) regarding the sale of the property of others.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article complements article 1079, which addresses situations where a tenant violates the conditions of their lease and causes serious harm to other occupants of the building. However, since the sanction here is more severe, the harm must be not only serious but also otherwise irreparable. This sanction, linked to the breach of an injunction, is subject to judicial oversight and is similar in nature to the sanctions provided under article 761 of the Code of Civil Procedure (C.C.P.).
1081. The syndicate may institute any action on the grounds of latent defects, faulty design or construction defects of the immovable or defects in the ground. In a case where the faults or defects affect the private portions, the syndicate may not proceed until it has obtained the authorization of the co-owners of those portions.
Where the defendant sets up the failure to act with diligence against an action based on a latent defect, such diligence is appraised in respect of the syndicate or a co-owner from the day of the election of a new board of directors, after the developer loses control of the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article aims to facilitate the recourse available to co-owners in the types of actions mentioned. Moreover, it is unlikely that, during the period when the developer controls the affairs of the co-ownership, they would initiate such actions against themselves. Therefore, the time limit from which a defendant may invoke the plaintiff’s lack of reasonable diligence begins to run from the day the co-owners assume control of the syndicate.
1082. The syndicate, within six months of being notified by the owner of an immovable under emphyteusis or superficies that he intends to transfer by onerous title his rights in the immovable, may acquire such rights in preference to any other potential acquirer during that period. If it is not notified of the planned transfer, it may, within six months from the time it learns that a third person has acquired the owner’s rights, acquire such rights from that person by reimbursing him for the transfer price and the costs he has paid.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article essentially reiterates the principle established in 1988 under article 441x.1 C.C.L.C. by the Act to amend the Civil Code with respect to co-ownership and emphyteusis. It complements article 1040 and aims to facilitate the exercise of a right of preemption by the syndicate in cases where the owner of an immovable subject to emphyteusis or superficies transfers by onerous title his rights.
1083. The syndicate may join an association of co-ownership syndicates formed for the creation, administration and maintenance of common services for several immovables held in co-ownership, or for the pursuit of common interests.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
More of an incentive than a source of rights, this article is intended to encourage syndicates of co-owners to come together to share, among other things, the cost of certain common services. It was not deemed necessary to provide further legislative framework for this type of association, as it may establish its own rules based on its specific needs and objectives.
1083.1. The syndicate may, at its own expense, obtain the plans and specifications of the immovable that are in the possession of an architect or engineer, who is bound to provide them to the syndicate on request.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1083.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This addition grants the syndicate access to the plans and specifications from the architect or engineer, subject to the payment of applicable fees.
DIVISION VI- BOARD OF DIRECTORS OF THE SYNDICATE
1084.The composition of the board of directors of the syndicate, the mode of appointment, replacement and remuneration of the directors as well as the other terms and conditions of their office are fixed in the by-laws of the immovable.
The court, upon application by a co-owner, may appoint or replace a director and fix the terms and conditions of his office if there is no provision therefor in the by-laws or if it is impossible to proceed in the manner prescribed therein.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, which essentially reproduces article 441q of the C.C.L.C., deals in particular with the method of appointment and replacement of directors, while taking into account the granting of legal personality to the community of co-owners. It provides that these matters are addressed in the building by-laws rather than in the constituting act of co-ownership, in order to facilitate any necessary adjustments.
1084.1. The directors may participate in a meeting of the board of directors by the use of a means which allows all those participating to communicate directly with each other.Directors who participate in such a meeting may vote by any means enabling votes to be cast in a way that allows them to be verified afterwards and protects the secrecy of the vote when such a ballot has been requested.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1084.1 was introduced into the Civil Code of Québec in December 2021 by Bill 103. This addition ensures that, going forward (in the post–COVID-19 pandemic period), meetings of the board of directors may be held virtually using a means that allows all directors to communicate with each other in real time.Such meetings are permitted so long as the technology used can, if required, enable a secret ballot and allow for the verification of votes afterward. It is worth recalling that Ministerial Order 2020-029 of April 26, 2020, had made virtual board meetings possible for the duration of the pandemic.
1085.The day-to-day administration of the syndicate may be entrusted to a manager who may, but need not be, chosen from among the co-owners.
The manager acts as an administrator of the property of others charged with simple administration.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article clarifies, by reference to the provisions on the administration of the property of another found in articles 1299 and following of the Code, the rights and obligations of the manager. As for the directors, they are subject to the obligations applicable to the directors of a legal person, as set out in articles 321 to 330 of the new Code.
1086. Any co-ower who has not paid his share of the common expenses for more than three months is disqualified for the office of director. Such disqualification ceases as soon as he has paid all the common expenses due; he may then once again be elected as a director.
The syndicate may replace a director or manager who, being a co-owner, neglects to pay his contribution to the common expenses.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article specifies that a director or manager may be replaced in a particular situation: when, being a co-owner, they fail to pay their share of the common expenses or the contingency fund.
Comments from Condolegal.com:
Article 1086 of the Civil Code of Quebec was amended in June 2018 following the changes introduced by Bill 141, to add failure to contribute to the self-insurance fund as a ground for replacing a director or manager who, being a co-owner, neglects to make such a payment.
The article was amended again in December 2019 by Bill 16. This amendment corrected the inconsistency whereby a co-owner who had not paid their share of the common expenses for more than three months lost their right to vote at meetings (under article 1094 of the Civil Code of Québec) but could still be elected as a director. Furthermore, the new text clarifies that the term "common expenses" includes contributions to both the contingency fund and the self-insurance fund.
1086.1.The board of directors shall send to the co-owners the minutes of every decision made at a meeting or every resolution in writing passed by the board within 30 days of the meeting or of the passage of the resolution.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1086.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This addition requires the syndicate’s board of directors to send co-owners the minutes of any decision made, within 30 days of the adoption of such decision.
1086.2.Any co-owner or director may apply to the court to annul or, exceptionally, to amend a decision of the board of directors if the decision is biased or was made with intent to injure the co-owners or in contempt of their rights. The action is forfeited unless instituted within 90 days after the decision of the board of directors.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
Article 1086.2 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. The purpose of this addition is to allow the court to annul—or, in exceptional cases, to correct—a decision of the board of directors that was made with the intent to harm a co-owner or in disregard of their rights. The legal action must be brought within 90 days following the board’s decision.
1086.3 In addition to the rules in article 341, where the directors are prevented from acting as a majority or in the specified proportion owing to an impediment or the systematic opposition of some of them, the court may, on the application of a director or co-owner, make any order it sees fit in the circumstances.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1086.3 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This addition aims to resolve certain deadlock situations within the board of directors.
1086.4 If circumstances warrant it, the court may replace the board of directors by a provisional administrator and determine the terms and conditions governing his administration.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1086.4 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This addition allows the court to replace the board of directors with a provisional administrator, if circumstances warrant it, and to determine the terms and conditions of their administration.
DIVISION VII- GENERAL MEETING OF THE CO-OWNERS
1087. The notice calling the annual general meeting of the co-owners shall be accompanied, in addition to the balance sheet, by the income statement for the preceding financial period, the statement of debts and claims, the budget forecast, any draft amendment to the declaration of co-ownership and a note on the essential terms and conditions of any proposed contract or planned work.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
To enable co-owners to make informed decisions, information regarding the matters to be addressed at the annual general meeting must be provided to them. This article, which constitutes new law, specifies the documents that must accompany the notice of convocation for the annual meeting of co-owners in order to achieve that objective. The procedural rules and requirements for holding meetings of legal persons, as set out in the Book on Persons, apply to co-owners' meetings.
1088. Within five days of receiving notice of a general meeting of the co-owners, any co-owner may cause a question to be placed on the agenda.
Before the meeting is held, the board of directors gives written notice to the co-owners of the questions newly placed on the agenda.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, which constitutes new law, gives co-owners the opportunity to have items they wish to be addressed added to the agenda.
1088.1. A meeting may be held by the use of a means which allows all those participating to communicate directly with each other.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1088.1 was introduced into the Civil Code of Quebec in December 2021 by Bill 103. This addition ensures that, going forward (in the post–COVID-19 pandemic period),co-owners’ meetings may be held virtually or in hybrid format using a means that allows all participants (directors, co-owners, or proxies) to communicate with each other in real time, subject to certain conditions. It is worth recalling that Ministerial Order 2020-029 , dated April 26, 2020, had made virtual co-owners’ meetings possible during the pandemic.
1089.Co-owners holding a majority of the votes constitute a quorum at general meetings.
If a quorum is not reached, the meeting is adjourned to a later date, notice of which is given to all the co-owners; three-quarters of the members present or represented at the new meeting constitute a quorum.However, decisions on the matters listed in article 1097 may be made at the new meeting only if those members hold at least the majority of the votes of all the co-owners.
A meeting at which there is no longer a quorum shall be adjourned if a co-owner requests it
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article maintains the principle set out in article 442e of the C.C.L.C., establishing that quorum is constituted by co-owners holding the majority of votes. However, to prevent important decisions from being made after a significant number of co-owners have left the meeting, it specifies that the meeting must be adjourned—at the request of a co-owner—if quorum is no longer maintained.Additionally, the second paragraph addresses situations where quorum is not reached at a meeting. This provision aims to prevent meetings from being indefinitely postponed.
Comments from Condolegal.com:
Article 1089 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment clarifies the quorum requirement and the decision-making procedures under article 1097 of the Civil Code of Quebec in the context of a reconvened meeting.
1089.1.Co-owners who participate in a meeting by the use of a means which allows all those participating to communicate directly with each other may vote by any means enabling votes to be cast in a way that allows them to be verified afterwards and protects the secrecy of the vote when such a ballot has been requested.,
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1089.1 was introduced into the Civil Code of Quebec in December 2021 by Bill 103. This addition complements the new article 1088.1, which ensures that co-owners’ meetings can be held virtually or in hybrid format in the post–COVID-19 period. This article allows for such meetings to take place, provided that the technology used can, if required, enable secret voting and that votes can subsequently be verified.It is worth recalling thatMinisterial Order 2020-029, dated April 26, 2020, had made it possible to hold co-owners’ meetings during the pandemic.
1090. Each co-owner is entitled to a number of votes at a general meeting proportionate to the relative value of his fraction. Co-owners of a fraction held in indivision vote in proportion to their undivided shares.
The co-owner of a fraction held in indivision who is absent from a general meeting is presumed to have mandated the other co-owners of that fraction to represent him, unless the absentee has, in writing, mandated a third person for that purpose or has indicated his refusal to be represented. The absentee’s voting rights are partitioned proportionately to the rights of the other co-owners in the indivision.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
The first part of this article reiterates the rule set out in article 442d of the C.C.L.C. concerning the number of votes held by co-owners. However, it specifies how votes are to be allocated in the case of undivided co-ownership of a fraction.Comments from Condolegal.com:
Article 1090 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment introduced a rebuttable presumption whereby a co-owner in undivided ownership who is absent from a meeting is deemed to have consented to being represented by the other undivided co-owners, unless they have either mandated a third party in writing or expressly indicated their refusal to be represented.
1091. Where, in a co-ownership comprising fewer than five fractions, a co-owner is entitled to more than one-half of all the votes available to the co-owners, the number of votes to which he is entitled at a meeting is reduced to the total number of votes to which the other co-owners present or represented at the meeting are entitled.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. It limits the number of votes a co-owner may hold in order to prevent a single person—whether or not a developer—from controlling the destiny of the co-ownership. The article addresses a gap in the previous law, which allowed one person to indefinitely dominate the co-ownership and impose their will on the other co-owners. The abuses that could result from such a situation, as well as the administrative shortcomings it created, posed a risk to the integrity of the co-ownership. This article is complemented by articles 1092, 1093, and 1099.
1092. At the end of the second and third years after the date of registration of the declaration of co-ownership, a developer of a co-ownership comprising five or more fractions is not entitled to more than 60% of all the votes of the co-owners, in addition to the votes attached to the fraction he occupies.
The limit is thereafter reduced to 25%.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new law. It aims to limit the promoter’s control over the affairs of the co-ownership by progressively reducing, over a three-year period, the number of votes they hold. However, the reduction in voting rights does not apply to the votes attached to the fraction occupied by the promoter as a residence. The three-year period is considered long enough to protect the promoter’s interests and short enough not to discourage co-owners from taking initiative. This rule applies only to co-ownerships with five or more fractions. For co-ownerships with fewer than five fractions, the rule set out in article 1091 will apply to the promoter, if applicable.
Various legislative models have been used in different jurisdictions to limit the duration of promoter control. For example, in Florida, provisions allow co-owners to appoint directors based on the number of units sold. In Virginia, legal provisions limit the promoter’s control period over the board of directors. In Ontario, the sale of any fraction by a promoter is deemed to carry the obligation to promptly sell the remaining fractions.
Article 1092 is a blend of the solutions adopted in Virginia and France. Among all those examined, it appears the most capable of balancing the promoter’s interests with those of the co-owners as a whole.
Comments from Condolegal.com:
Article 1092 of the Civil Code of Quebec was amended in December 2019 by Bill 16, replacing the phrase “used as a residence” with “occupied”. This amendment extends the scope of article 1092 to cover not only residential co-ownerships but also other types, such as mixed-use and commercial co-ownerships.
1093. Any person who, at the time of registration of a declaration of co-ownership, owns at least one-half of all the fractions, or his successors, other than a person who in good faith acquires a fraction for a price equal to its market value with the intention of occupying it, is considered to be a developer.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. It defines who should be considered the promoter of a co-ownership. While the concept of a promoter is commonly used in practice, it has not previously corresponded to a clearly defined legal reality. Depending on the situation, the promoter may be the builder, a general contractor, or a selling owner. It may also be a creditor who financed the project and who, at the time of the registration of the declaration of co-ownership, owns more than half of the fractions.This article encompasses these various possibilities and targets the person most directly involved in the project—one who promotes the sale and exercises control during the early years.
Comments from Condolegal.com:
Article 1093 of the Civil Code of Quebec was amended in December 2019 by Bill 16, replacing the word “inhabit” with “occupy.” This amendment aligns with the corresponding change made to article 1092.
1094. Any co-owner who has not paid his share of the common expenses for more than three months is deprived of his right to vote. He may once again exercise that right as soon as he has paid all the common expenses he owes.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new. It aims to provide the syndicate with a tool to ensure the payment of common expenses. Articles 2724 and 2729, for their part, grant the syndicate a legal hypothec to secure the payment of these expenses and contributions to the contingency fund.
Comments from Condolegal.com:
Article 1094 of the Civil Code of Quebec was amended in June 2018 following the additions introduced by Bill 141, to include failure to contribute to the self-insurance fund for more than three months as a ground for losing voting rights at a co-owners’ meeting. This amendment has not yet come into force.
The article was amended again in December 2019 by Bill 16, to specify that a co-owner regains their right to vote once they have paid all outstanding common expenses (including contributions to the contingency and self-insurance funds – once the latter contribution has come into force).
1095. Only assignments of the voting rights of a co-owner which have been declared to the syndicate may be set up against it.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, a new law, aims to ensure that the transfer of voting rights is not enforceable against the syndicate unless it has been duly notified. Its purpose is to ensure better control over who is authorized to vote at co-owners’ meetings and to guarantee the valid transmission of meeting notices to the appropriate parties. The transfer of voting rights is a common clause in hypothec contracts affecting a fraction. However, the hypothecary creditor’s interest in voting at co-owners’ meetings is limited, since few decisions made by the syndicate are likely to affect the value of their security. The article sets out a sufficiently flexible rule allowing notification of the transfer of voting rights, specifying the nature of the rights with respect to which the creditor reserves a right to vote.
1096. Decisions of the syndicate, including a decision to amend the by-laws of the immovable or to correct a clerical error in the declaration of co-ownership, are taken by a majority vote of the co-owners present or represented at the meeting.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article reiterates the principle found in Article 442e of the C.C.L.C; it establishes that decisions of the meeting are made by a majority of votes. It also specifies that material errors in the declaration may be corrected by the same majority, which was not the case under the Civil Code of Lower Canada. Read together with paragraph 4o of Article 1097, Article 1096 allows the by-laws of the co-ownership to be amended by a majority vote, which was not previously the case, as the rules governing the functioning of the co-ownership were part of the declaration and any amendment to the declaration used to require a double majority, as provided in former Article 442f.
Comments from Condolegal.com:
Article 1096 of the Civil Code of Quebec was amended in December 2019 by Bill 16, in order to clarify that any decision by the syndicate to amend the by-laws of the immovable must be made by the general meeting of co-owners, by a majority vote of the co-owners present or represented. This amendment is related to the change made to Article 1060.
1097. Decisions concerning the following matters are made by co-owners representing three-quarters of the votes of the co-owners present or represented:
(1) acts of acquisition or alienation of immovables by the syndicate;
(2) work for the alteration, enlargement or improvement of the common portions, the apportionment of the cost of the work and the granting of a movable hypothec to finance it;
(3) the construction of buildings to create new fractions;
(4) the amendment of the act constituting the co-ownership or of the description of the fractions;
(5) the amendment of the description of the private portions referred to in section 1070.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces Article 442f of the C.C.L.C. As mentioned in the previous article, the double majority it provides is required to amend the declaration of co-ownership only with respect to two of its parts: the act constituting the co-ownership and the description of the fractions.
Comments from Condolegal.com:
Article 1097 of the Civil Code of Quebec was amended in December 2019 by Bill 16. It introduced a “reinforced majority” required to make decisions under this article. It was amended again in March 2020 by Bill 41, which added a fifth paragraph targeting decisions that modify the description of private portions for insurance purposes.
1098. Decisions on the following matters require a majority of three-quarters of the co-owners representing 90% of the votes of all the co-owners:
(1) to change the destination of the immovable;
(2) to authorize the alienation of common portions the retention of which is necessary to maintain the destination of the immovable;
(3) to amend the declaration of co-ownership in order to permit the holding of a fraction by several persons having a periodic and successive right of enjoyment.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces Article 442h of the C.C.L.C, with two exceptions. First, it does not retain the rule of unanimity, in order to prevent a single co-owner from blocking a decision. Given the significance of such decisions, a double majority is required: three-quarters of the co-owners representing ninety percent of the votes of all co-owners. Second, it subjects the decision amending the declaration of co-ownership to allow a fraction to be held under a time-share arrangement to this same double majority, considering that such a decision could significantly alter the co-ownership project.
1099. Where the number of votes to which a co-owner or a developer is entitled is reduced, or where a co-owneror a developer is deprived of his right to vote, the total number of votes available to all the co-owners is reduced by the same number.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This new article specifies that when the number of votes a co-owner or the developer may exercise is reduced under Articles 1091 and 1092, the total number of co-owners’ votes is reduced accordingly for any vote requiring a majority in number and in votes.
Comments from Condolegal.com:
Article 1099 of the Civil Code of Quebec was amended in December 2019 by Bill 16. This amendment serves to clarify the denominator used in vote calculations when voting rights are reduced.
1100. The co-owners of contiguous private portions may alter the boundaries between their private portions without obtaining the approval of the general meeting provided they obtain the consent of their hypothecary creditors and of the syndicate. No alteration may increase or decrease the relative value of the group of private portions altered or the total of the voting rights attached to them.
The syndicate amends the declaration of co-ownership and the cadastral plan at the expense of the co-owners contemplated in the first paragraph; the act of amendment shall be accompanied by the consents of the creditors, the co-owners and the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article aims to allow co-owners of adjoining private portions to modify the boundaries of their private portions without having to obtain the majority required under Article 1097. The obligation by the previous law to obtain the consent of a majority of co-owners representing three-quarters of the votes to alter the boundaries of a few fractions—typically two or three—was not retained, since such modifications concern only the co-owners of the affected fractions. The other co-owners have no vested interest, as the value of their own fractions is not affected. Moreover, in commercial co-ownership, buyers’ needs are highly varied and may evolve quickly.
1101. Any stipulation in the declaration of co-ownership that changes the number of votes required to make a decision under this chapter is deemed unwritten.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new law. It renders null any provision in the declaration that alters the number of votes required to make a decision as provided in this chapter. Its purpose is to prevent the insertion, in the declaration, of a clause requiring unanimity for certain decisions, even though the law establishes a specific percentage.
1102. Any decision of the syndicate which, contrary to the declaration of co-ownership, imposes on a co-owner a change in the relative value of his fraction or a change of destination of his private portion is without effect.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article substantially reproduces Article 442g of the C.C.L.C.
Comments from Condolegal.com:
Article 1102 of the Civil Code of Quebec was amended in December 2019 by Bill 16, by removing the words “or the use that may be made of it.”
1102.1. The board of directors shall send to the co-owners the minutes of every general meeting or every resolution in writing passed by a general meeting within 30 days of the general meeting or of the passage of the resolution.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1102.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. Like Article 1086.1, this addition imposes a 30-day deadline on the board of directors to provide co-owners with the minutes of any meeting of the assembly or any written resolution. This article must be read in conjunction with Article 1103 of the Civil Code of Quebec, which provides a legal remedy for any co-owner to cancel or modify a decision taken by the meeting of co-owners. Moreover, the minutes are part of the documents that must be kept in the co-ownership register. They must be made available to any co-owner who requests them.
1103.Any co-owner may apply to the court to annul or, exceptionally, to amend a decision of the general meeting if the decision is biased, if it was taken with intent to injure the co-owners or in contempt of their rights, or if an error was made in counting the votes.
The action is forfeited unless instituted within 90 days after the meeting.
If the action is futile or vexatious, the court may condemn the plaintiff to pay damages.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article allows a co-owner, under certain conditions, to request the annulment of a decision of the assembly if it is biased, it was made with the intent to harm the co-owners, it was made in disregard of their rights, or if an error occurred in the vote count. The latter case could, for example, arise due to the reduction in the number of votes held by the developer or by a co-owner. This article establishes the concept of abuse of rights in co-ownership law and is intended to protect the minority against possible abuses by the majority.
Comments from Condolegal.com:
Article 1103 of the Civil Code of Quebec was amended in December 2019 by Bill 16. The court may now, not only annul but also, in exceptional cases, correct a decision of the meeting of co-owners that was made with the intent to harm or in disregard of co-owners’ rights. The action must be brought within 90 days of the meeting, whereas previously the time limit was 60 days before the adoption of Bill 16.
1103.1 Where the co-owners are prevented from acting as a majority or in the specified proportion owing to an impediment or the systematic opposition of some of them, the court may, on the application of a co-owner, make any order it sees fit in the circumstances.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1103.1 was introduced into the Civil Code of Quebec in December 2019 by Bill 16. This addition is intended to resolve certain deadlock situations within the co-ownership.
DIVISION VIII- LOSS OF CONTROL OF THE SYNDICATE BY THE DEVELOPER
1104.Within 90 days from the day on which the developer of a co-ownership ceases to hold a majority of votes in the general meeting of the co-owners, the board of directors shall call a special meeting of the co-owners to appoint a new board of directors.
If the meeting is not called within 90 days, any co-owner may call it.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article of new law aims to transfer control of the syndicate from the developer to the co-owners within ninety days from the moment the developer no longer holds the majority of votes at the meeting of co-owners. This article is a logical continuation of Article 1092, which limits the number of votes a developer may exercise. It serves to prevent a developer from appointing themselves as director for an extended period and thereby control the syndicate, even after losing majority voting power at the assembly.
Comments from Condolegal.com:
Article 1104 of the Civil Code of Quebec was amended in December 2019 by Bill 16, replacing the word “election” with “appointment.”
1105.The board of directors renders account of its administration at the special meeting.
It produces the financial statements, which shall be accompanied with the comments of an accountant on the financial situation of the syndicate. The accountant shall, in his report to the co-owners, indicate any irregularity that has come to his attention.
The financial statements shall be audited on the application of co-owners representing 40% of the votes of all the co-owners. The application may be made at any time, even before the meeting.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article of new law requires the board of directors to report on its administration when the developer loses control of the syndicate, and more specifically, at the time of the election of new directors. This article serves several purposes. First, it allows co-owners to obtain adequate information about the financial situation of the syndicate. Second, it enables co-owners to exercise a degree of oversight over the developer’s management. Finally, by requiring the developer to render an account, it promotes healthier management of the syndicate during the period under the developer’s control. As a result, the risk of abuse is reduced.
1106.The accountant has a right of access at all times to the books, accounts and vouchers concerning the co-ownership.
He may require from the developer or an administrator any information or explanation that he considers necessary for the performance of his duties.
Comments from the Minister of Justice (1993)
This article of new law grants the accountant access, at any time, to the books, accounts, and supporting documents related to the co-ownership. It also entitles the accountant to request from the developer or any director any information or explanation deemed necessary to carry out their duties.
1106.1 Within 30 days of the special meeting, the developer shall provide the following to the syndicate:
The developer is liable for any injury resulting from his failure to provide such documents and information.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from Condolegal.com:
Article 1106.1 was first introduced into the Civil Code of Quebec in June 2018 by Bill 141, to impose on the developer the obligation to provide to the new board of directors, within 30 days following the transitional special meeting, a sufficiently detailed description of the private portions. This description must allow to identify improvements already made by co-owners, as well as, where applicable, those that will be added in the future.
The coming into force of this provision was gradual:
This article was subsequently amended by Bill 16 in December 2019 to add a specific list of documents that the developer must provide to the syndicate within 30 days following the transitional special meeting. This amended version came into force on January 10, 2020, with the exception of two important elements:
These two obligations are still not in force. In fact, subsection 6 of section 165 of Bill 16 provides that their entry into force is subject to the adoption of the first government regulation.
1107.The new board of directors may, within 60 days after the election, terminate without penalty a contract entered into before the election by the syndicate for maintenance of the immovable or for other services, if the term of the contract exceeds one year.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article of new law aims to prevent the developer, during the period in which they control the affairs of the co-ownership, from entering into contracts with certain parties for excessively long durations or at often exorbitant prices. This article is inspired by similar provisions found in condominium legislation in the states of Virginia and Florida.DIVISION IX- TERMINATION OF CO-OWNERSHIP;
1108. Co-ownership of an immovable may be terminated by a decision of a majority of three-quarters of the co-owners representing 90% of the votes of all the co-owners.The decision to terminate the co-ownership shall be recorded in writing and signed by the syndicate and the persons holding hypothecs on the immovable or part thereof. This decision is registered in the land register under the registration numbers of the common portions and private portions.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article provides that co-ownership of an immovable may be terminated. However, unlike former Article 442o of the C.C.L.C, which required unanimity among co-owners, only the consent of three-quarters of the co-owners representing ninety percent of the voting rights is now required. This relaxation of the previous rule is intended to prevent a single co-owner from forcing all others to remain in a legal structure they no longer wish to be part of.
1109.The syndicate is liquidated according to the rules of Book One on the liquidation of legal persons.
For that purpose, the liquidator is seized of the immovable and of all the rights and obligations of the co-owners in the immovable, in addition to the property of the syndicate.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
Previously, the rules governing the partition and judicial sale of common property applied to the liquidation of co-ownership rights. However, since the community of co-owners now has legal personality, the rules on the liquidation of legal persons, as set out in Articles 355 to 364, must now be applied.
ADMINISTRATION OF THE PROPERTY OF OTHERS
KINDS OF ADMINISTRATION
DIVISION I- SIMPLE ADMINISTRATION OF THE PROPERTY OF OTHERS
1301. A person charged with simple administration shall perform all the acts necessary for the preservation of the property or useful for the maintenance of the use for which the property is ordinarily destined.Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
It sets out the general obligations applicable to the simple administration of the property of others. Simple administration applies to administrators such as a tutor or a liquidator. It covers both acts necessary for the preservation of the property and those that are necessary or useful to maintain the property in good working condition or usability. This article is complemented by the other rules set out in this section.
1302. An administrator charged with simple administration is bound to collect the fruits and revenues of the property under his administration and to exercise the rights pertaining to the property.
He collects the claims under his administration and gives valid acquittance for them; he exercises the rights pertaining to the securities administered by him, such as voting, conversion or redemption rights.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
It is consistent with previous law. The collection of fruits and revenues, including claims, constitutes an act of simple administration. The granting of a power or the imposition of an obligation entails the performance of the acts necessary for this purpose.1303. An administrator shall continue the use or operation of the property which produces fruits and revenues without changing its destination, unless he is authorized to make such a change by the beneficiary or, in case of impediment, by the court.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
1304. An administrator is bound to invest the sums of money under his administration in accordance with the rules of this Title relating to investments presumed sound.Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article restates principles established under previous law. The obligation to make investments is limited to amounts not required for administration. Indeed, the administrator must first use available funds to maintain the entrusted property in good working condition or usability.
DIVISION II- FULL ADMINISTRATION OF PROPERTY OF OTHERS
1307. An administrator may, to perform his obligations, alienate the property by onerous title, charge it with a real right or change its destination and perform any other necessary or useful act, including any form of investment.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article complements Article 1306 and, like that article, is consistent with previous law applicable to trustees. The administrator entrusted with full administration may perform nearly all acts related to the property under management. These acts must be useful or necessary for the fulfillment of their obligations. However, the exercise of the broad authority granted to such an administrator is subject to other provisions of the Code, such as those requiring the administrator to act with prudence and diligence, and in the best interest of the beneficiary or the purpose being pursued.1308. The administrator of the property of others shall, in carrying out his duties, comply with the obligations imposed on him by law and by the constituting act. He shall act within the powers conferred on him.
He is not liable for loss of the property resulting from superior force or from its age, its perishable nature or its normal and authorized use.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is the first in a series of provisions that set out the obligations and duties applicable to all administrators, regardless of the type of administration entrusted to them. The first paragraph of this article is new and aligns with principles of previous law, which require the administrator to act within the limits of their authority. The second paragraph is inspired by the rules of common law.1309. An administrator shall act with prudence and diligence.
He shall also act honestly and faithfully in the best interest of the beneficiary or of the object pursued.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article sets out, in its first paragraph, a standard of conduct reaffirmed by previous law and found in various other statutes, requiring the administrator to act with prudence and diligence. It restates, in a new formulation but with content consistent with previous law, the objective and abstract standard of the reasonably prudent person placed in similar circumstances. The second paragraph of this article imposes on the administrator a general duty of honesty and loyalty toward the beneficiary or the purpose being pursued, acting in their best interest. This provision requires not only complete fidelity to commitments undertaken or imposed by law but also compliance with standards of honor and integrity, as well as a duty to safeguard the interests of the beneficiary or the intended purpose. For example, the administrator must provide the beneficiary with all relevant information that may influence their decision to maintain, modify or terminate the administration, or even, in the absence of a beneficiary, the administrator must take it upon himself to go the court. This paragraph is consistent with previous law, under which the duty of loyalty—though not expressly stated—was inferred from the obligation of administrators to avoid conflicts of interest and to act as a prudent administrator would.
Comments from the Minister of Justice (1993):
This article, along with those that follow, sets out the rules flowing from the general duty of loyalty imposed on administrators. Although new, it remains consistent with certain principles of previous law.
1310. No administrator may exercise his powers in his own interest or that of a third person or place himself in a position where his personal interest is in conflict with his obligations as administrator.
If the administrator himself is a beneficiary, he shall exercise his powers in the common interest, giving the same consideration to his own interest as to that of the other beneficiaries.
CHAPTER III- RULES OF ADMINISTRATION
DIVISION I- OBLIGATIONS OF THE ADMINISTRATION TOWARDS THE BENEFICIARY
1785. The sale of an existing or planned residential immovable by the builder or a developer to a natural person who acquires it to occupy it shall be preceded by a preliminary contract by which a person promises to buy the immovable, whether or not the sale includes the transfer to him of the seller’s rights over the land.
The preliminary contract shall include a stipulation that the promisor may withdraw his promise within 10 days after signing it. Where a memorandum must be given, the preliminary contract shall also include a stipulation that the promisor may, if the seller fails to give the memorandum to the promisor at the time the preliminary contract is signed, withdraw his promise until he receives the memorandum or within 10 days after receiving it.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article of new law is the first in a series of provisions designed to protect buyers, in the context of residential real estate sales, when dealing with a professional seller, builder, or developer.
It protects physical persons who will themselves occupy the building—either already constructed or to be built. It requires that any sale between such a person and a builder or developer be preceded by a preliminary contract, by which the person promises to purchase the property.
The preliminary contract must include a cancellation clause in favour of the promisor-buyer, valid for ten days. The following article sets out the maximum indemnity that may be claimed if this cancellation right is exercised.
This measure is intended to protect individuals who often enter into a sale without fully considering the implications, and within relatively short timeframes, often under pressure from the seller. It allows the promisor-buyer to reflect calmly on the consequences of their decision.
1786. In addition to the name and address of the seller and of the promisor, the work to be performed, the sale price, the date of delivery and the real rights charging the immovable, the preliminary contract shall contain any useful information pertaining to the characteristics of the immovable and, where the sale price is subject to review, the terms and conditions of review.
A government regulation may determine other information that must be included in the preliminary contract.
Where the preliminary contract provides for an indemnity in case of exercise of the right of withdrawal, the indemnity may not exceed 0.5% of the agreed sale price.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article, which complements the precedent, sets out the information that must be included in the preliminary contract and also establishes the maximum amount the buyer may be required to pay if they exercise the right of withdrawal.1787. Where a fraction of an immovable under divided co-ownership or an undivided share of a residential immovable is sold, the seller shall give the promisor a memorandum at the time the preliminary contract is signed; he shall also furnish the memorandum where a residence forming part of a residential development having common facilities is sold.
A memorandum shall also be given where the same fraction of an immovable under co-ownership is sold to several persons who thereby acquire a periodic and successive right of enjoyment in the fraction.Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article of new law provides an additional protective measure for sales involving co-ownership, whether divided, undivided, or time-shared; however, it applies only when the sale concerns a residence that is part of a development comprising ten or more units and shared facilities. Such sales must be preceded not only by a preliminary contract but also by an information note intended to inform the prospective buyer of the key elements of the project, as well as the functioning and administration of the co-ownership or residential development. The required contents of the information note are set out in Article 1788.
It was deemed sufficient to limit this requirement to situations where the unit, share, or residence being sold is part of a building or development with at least ten residences, thereby avoiding imposing overly complex obligations on small-scale projects.
The purpose of this article is to ensure that the buyer can access essential information about the property they intend to acquire, without having to obtain and consult numerous, often complex and voluminous, documents. This information is especially important because buyers are often unfamiliar with the functioning and very nature of co-ownership, whereas such matters are well known to the developer or builder.
1788. The memorandum complements the preliminary contract. In addition to the information prescribed by government regulation, it contains the names of the architects, engineers, builders and developers, a plan of the overall property development project and, where applicable, the general development plan of the project and a summary of the descriptive specifications. It also contains the budget forecast, indicates the common facilities and contains information on the management of the immovable and, where applicable, on the rights of emphyteusis or superficies to which the immovable is subject.It also indicates, where applicable, that the immovable is covered by a guarantee plan, and the manner in which the promisor can consult that plan.
A copy or summary of the declaration of co-ownership or indivision agreement and of the by-laws of the immovable shall be appended to the memorandum even if they are draft documents.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article complements the previous one. It states that the information note supplements the preliminary contract and sets out its required content.
The second paragraph requires that a copy or summary of the declaration of co-ownership or the indivision agreement, as well as the by-laws of the immovable, be annexed to the information note. By specifying that these documents are required even if they are still in draft form, the article addresses the common situation in which the final versions are not available until construction is completed.
1791. The budget forecast shall be prepared on the basis of one year of full occupancy of the immovable; in the case of an immovable under divided co-ownership, it is prepared for a period beginning on the date of registration of the declaration of co-ownership.
A budget includes, in particular, a statement of debts and claims, revenues and expenditures and common expenses. It also indicates, for each fraction, the likely amount of property taxes, the rate of such taxes and the annual amount of contributions to the common expenses. The part of that amount intended for the contingency fund must correspond either to 0.5% of the reconstruction cost of the immovable or to the recommendations made in a contingency fund study.
Where the amounts provided in the budget forecast prepared by the developer for the fiscal years during which the developer controls the syndicate are more than 10% below the amounts the syndicate had to incur for the first full fiscal year after the developer lost control of the syndicate, the developer shall reimburse to the syndicate the difference between the amounts provided in the forecast and the amounts actually incurred. However, the developer is not bound to do so to the extent that the difference is attributable to decisions made by the syndicate on or after the day a new board of directors was appointed following the loss of such control.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article complements Article 1788, which requires that the information note include a projected budget. It establishes the occupancy basis on which the budget must be prepared, the starting point of the period covered, as well as the information that must be included.
This information will allow any prospective buyer to know the amount of common expenses payable for each type of unit, as well as the general financial situation of the co-ownership.
Comments from Condolegal.com:
Article 1791 of the Civil Code of Quebec was amended in December 2019 by Bill 16.
Paragraphs 2 (in part) and 3 of Article 1791, which deal in particular with the annual amount of contributions to common expenses included in the projected budget, are not yet in force. They will only come into force once a regulation made under the second paragraph of Article 1071 of the Civil Code has been enacted.
It should be recalled that Article 1071 of the Civil Code of Québec was also amended in December 2019 by Bill 16. This amendment notably requires syndicates to obtain a contingency fund study and to update it every five years. The study must be carried out by a member of a professional order designated by government regulation.
The coming-into-force provisions are as follows:
1791.1. Notwithstanding any agreement to the contrary, any deposit paid to a builder or a developer toward the purchase of a fraction of an immovable under divided co-ownership must be fully protected by one or more of the following means: a guarantee plan, insurance, a suretyship or a deposit in a trust account of a member of a professional order according to the terms and conditions determined by government regulation.
The deposit may also be protected by another means prescribed by government regulation, in accordance with the terms and conditions it determines.
The deposit is returned to the person who paid it if the fraction of the immovable under co-ownership is not delivered on the date agreed upon in accordance with the terms and conditions determined by government regulation.
Case law citing this article: consult the Annotated Civil Code on Qweri
1793. Where the sale of a residential immovable is not preceded by the preliminary contract or the memorandum, the buyer may, if he suffers serious injury therefrom, apply for the annulment of the sale and for damages. If the buyer prefers that the contract be maintained, he may apply for a reduction of his obligation equivalent to the damages he would be justified to claim. The action must be brought within 90 days after the sale, that is, within 90 days following the special meeting provided for in article 1104 of this Code.
The same applies where the preliminary contract or the memorandum contains errors or deficiencies.
Case law citing this article: consult the Annotated Civil Code on Qweri
Comments from the Minister of Justice (1993)
This article is new law. It provides for relative nullity of any sale of a residential immovable that is not preceded by a preliminary contract—which, in certain cases, must include an information note—if the buyer demonstrates that they have suffered serious prejudice as a result. This principle applies regardless of the number of dwelling units in the immovable.
This article is inspired by section 271 of the Consumer Protection Act, which allows a consumer to seek annulment of a contract where certain formation requirements have not been met or where the contract fails to comply with a formality. However, it differs from that provision in that Article 271 does not require the consumer to prove that the defect caused them harm.
Similarly, this article departs from the general rule stated in Articles 1414, 1416, and 1420 of the Civil Code, which provide that a contract is null when a required form is not observed, regardless of whether the person for whose benefit the form was required has suffered any prejudice.
In the context of residential real estate sales, however, it was deemed appropriate to limit the remedy of nullity to cases where the buyer proves that they have suffered serious prejudice as a result of the seller’s failure to provide the required documents. While those documents are essential to ensure the buyer receives all necessary information to make an informed decision and benefit from a reflection period, imposing nullity without serious prejudice would be a disproportionate sanction relative to the gravity of the breach.
If the preliminary contract and the information note were in fact delivered to the prospective buyer, but contained false, misleading, or incomplete information regarding a material element—or if the seller concealed an important fact—the buyer would benefit from the ordinary remedies provided in the Book on Obligations, in the event of error or fraud, pursuant to Articles 1400, 1401, 1407, and 2927.
Moreover, since June 1988, certain commercial practices related to the construction and sale of immovables have been prohibited under the Consumer Protection Act (sections 6.1, 215 et seq.).
