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Fund dedicated for major repairs and replacements of the common portions of the immovable, distinct from their regular maintenance. This fund should not be used to pay for day to day maintenance. Its aim is to anticipate the long-term financing needs of major work on the common portions, which require a large investment, by staggering them over time. It is for the board of directors, after consultation with the general meeting of the co-owners, to determine the estimated cost of these expenses and the amounts to be paid into the contingency fund.
WARNING ! Only one contingency fund per divided co-ownership must be constituted. However, it may, as provided for in article 1064 of the Civil code of Quebec, be subdivided to take into account, in establishing the contribution to the contingency fund, the respective rights of the co-owners on the common portions for restricted use.
23/10/2025
Since August 14, 2025, transactions in co-ownership have been disrupted by a major reform of the Civil Code of Quebec. From now on, any co-owner who sells his unit must obtain from the syndicate a certificate on the condition of the co-ownership, which the buyer will receive before the conclusion…...
16/06/2024
However new and attractive it may be, a co-ownership will inevitably age and, sooner or later, require major repairs. Yet in Québec, nearly half of syndicates of co-owners have no planning tool to adequately fund their contingency fund. This shortcoming, which can sometimes have serious financial consequences for certain co-owners, should…...
18/10/2025
Article 154 of Bill 16, adopted in 2019, continues to raise many questions in the field of co-ownership. This transitional provision, which grants syndicates a period of “up to ten years” for their contingency fund to become “sufficient,” appears clear at first glance. In practice, however, it raises significant interpretative issues…...
09/10/2025
Le mois dernier, Yolande m’a contactée au sujet de la vente de sa maison de ville. Présidente d’un syndicat de trois copropriétés partageant une seule entrée d’eau et une mince bande de terrain, elle se dit dépassée par les nouvelles obligations issues de la réforme de la Loi sur la…...
08/09/2025
Syndicates of co-owners must establish a self-insurance fund that is liquid and available in the short term. The purpose of this fund is to anticipate and finance, in particular, expenses related to the execution of work following a loss. This fund, mandatory under Article 1071.1 of the Civil Code of…...
23/07/2025
The contingency fund is at the heart of a co-ownership’s financial viability. However, according to Me Yves Joli-Coeur, Emeritus Lawyer and President of the RGCQ, half of Quebec’s co-ownerships do not have the necessary funds to carry out future major repairs. A concerning situation, especially as new co-ownership regulations are…...
06/07/2025
As the manager of a co-ownership building, I received a request from some co-owners to replace their balcony railings. A discussion began regarding the possibility of financing this work from the contingency fund, with some co-owners believing that it is an improvement to the building. Others maintain that the contingency…...
05/07/2025
We are considering a complete renovation of the lobby design in our building. This project would include replacing the finishes, adding furniture, upgrading the lighting, and possibly even hiring a designer. The estimated cost of the entire project could exceed $150,000, which raises important questions about the appropriate funding source…...
21/04/2025
A professional firm submitted a contingency fund study along with several contribution scenarios, including a special assessment of $8,553 per year over 10 years. A projected budget, covering some work but without any flexibility, was nevertheless presented to the general meeting of co-owners and then adopted by the board of…...
05/04/2025
As part of the management of our co-ownership, several reports were commissioned by the board of directors: reports on the condition of the facades, the indoor parking, the balconies, as well as for the preparation of the maintenance log and the study of the contingency fund. Some co-owners are wondering…...
16/03/2025
As directors, we are questioning the allocation of common expenses, particularly those related to the common portions designated for exclusive use. One specific case has caught our attention: a wooden rooftop terrace that is for the exclusive use of a co-owner. The declaration of co-ownership states that this co-owner must…...
23/02/2025
The contingency fund study for our residential tower, conducted three years ago, reveals insufficient annual co-owner contributions. These do not fully cover the building’s deterioration or fund major repairs and common area replacements. By December 31, the fund will be $100,000 short of the recommended amount. While gradually increasing contributions…...
27/01/2025
According to some sources, the contingency fund should amount to 5% of the common expenses, which seems very insufficient to me, especially if the building will require major work in the medium term. Other recommendations suggest a figure corresponding to at least 0.5% of the building’s reconstruction value, which appears…...
08/01/2025
Co-ownership, in both France and Quebec, represents a significant portion of the real estate market and raises issues of management, renovation, and governance. These collective housing units, whether residential buildings or row houses, require tailored approaches to ensure their sustainability. In France, co-ownerships are often associated with historic buildings, where…...
15/12/2024
As the president of a horizontal co-ownership, I have noticed confusion among co-owners. They believe that the contingency fund can cover work on private portions, such as roofs, windows, or exterior cladding. However, under the Civil Code of Québec, this fund must be used exclusively for common portions. Question :…...
09/08/2022
Question: We have accumulated significant sums for the repair of the roof, which is to take place in ten years. As part of the sale of my apartment, can I ask the buyer or the syndicate for a refund of the contributions I have paid to the contingency fund?...
18/11/2024
A study of the contingency fund was recently conducted by a professional. This analysis highlighted two possible scenarios: 1. Scenario 1 (status quo): This scenario, which is not recommended by the professional, would maintain the current contributions but would result in a deficit within approximately fifteen years, requiring the use…...
11/09/2024
Le jeudi 12 septembre 2024 de 19h00 à 21h00, nous étions réunis pour une émission spéciale de webradio dédiée aux nouvelles obligations légales pour les syndicats de copropriétaires. Cette émission a enregistré une audience record ! Mercredi 11 septembre 2024, le Gouvernement du Québec a publié, dans la Gazette officielle du Québec,…...
23/07/2024
In general, a syndicate of co-ownership is considered a non-profit organization (NPO). As such, it benefits from a tax exemption. However, like any legal person, the syndicate of co-ownership must comply with various tax obligations, failing which it may face penalties that could have significant repercussions on the financial situation of…...
08/07/2024
I've recently become a co-owner. The building I live in, which is over 30 years old, has 10 units. The contribution to the reserve fund is substantial. In fact, it consumes 20% of the condominium's budget! This seems excessive to me. The other co-owners share this concern and question if…...
08/07/2024
Seven years ago, the board of directors engaged professionals to conduct a contingency fund study. Upon reviewing it, the directors at the time deemed the financial contributions required from the co-owners to the contingency fund too costly. Recently, a sale of an apartment in our building failed because the buyer…...
27/06/2024
Co-ownership work is of the utmost importance. Yet, they are more often than not overlooked by the syndicates of co-owners. Work that needs to be done in common portions can be minor or major in scope. Yet one needs money to pay for them. Good financial planning is therefore advisable…...
25/06/2024
With the entry into effect of the Civil Code of Québec in 1994, the legislator introduced the obligation for every syndicate of co-owners to have a contingency fund in order to anticipate and to finance the future expenses to repair and to replace the common portions; this fund is strictly reserved…...
16/06/2024
In the case of contingency funds, a syndicate of co-owners must have guidelines for the investment of the sums accumulated in the fund. It must clearly define the return and risk objectives for a given period while taking into account constraints such as liquidity needs, the legal context and exceptional…...
16/06/2024
The Asset Management Plan (AMP) is a comprehensive process for ensuring the conservation and maintenance of real property assets. This plan details the information regarding the common elements and the measures required to provide an agreed-upon level of service in the most cost-effective manner, while describing the associated risks. In…...
16/06/2024
The contingency fund constitutes first and foremost a prevention tool. The desire to incite co-owners to anticipate the completion of important work is not news. Prior to the entry into effect of the Civil Code of Québec in 1994, it was a frequent occurrence for a co-ownership (condominium) to have…...
30/03/2024
Common expenses are payable by the person who is the title owner upon receipt of the notice of assessment. However, when selling a fraction, the buyer may be required to pay with interest for all common charges owed by the seller (Article 1069 of the Civil Code of Québec). It…...
22/03/2024
En tant que membre du conseil d'administration de notre syndicat de copropriété, je suis fréquemment confronté à une variété de documents et communications qui emploient divers acronymes et abréviations propres au secteur de la copropriété. Dans le but d'améliorer ma compréhension ainsi que celle des autres membres du conseil, et…...
01/01/2024
Dans cette capsule vidéo, l’avocat émérite Yves Joli-Coeur explique le concept du Fonds de prévoyance. Il rappelle qu’avec l’entrée en vigueur du Code civil du Québec, en 1994, le législateur québécois a introduit l’obligation, pour tout syndicat de copropriétaires, de se doter d’un « fonds de prévoyance ». Ce fonds…...
22/08/2021
A syndicate of co-owners has the obligation to account for its operations by funds. The Civil Code of Québec requires the creation of a general fund, a contingency fund and in April 2022, the creation of the self-insurance fund. The creation of the early self-insurance fund is recommended. The general…...
26/09/2020
At our last annual co-owner's meeting, the board of directors informed us that it was going to take $10,000 from our contingency fund to set up a self-insurance fund. To justify their decision, the directors said that this will allow to avoid putting up a special assessment. Several co-owners seemed to…...
31/07/2020
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09/08/2022
October 13, 2015 - A contingency funds survey was recently carried out. It confirmed our apprehensions dating back several years: the lack of discipline of many syndicate of co-owners could eventually lead to a general loss of confidence towards co-ownership’s concept of collective housing. The three parties in the survey,…...
19/03/2010
I have been living for a year in a condo I bought in a recently built building. To my surprise, there is still no contingency fund being funded. We pay the common expenses of the immovable monthly (maintenance, snow removal, condo insurance), but no 5% of the budget contribution…...