Definition : Contribution to the contingency fund

Amounts of money required from the co-owners by the syndicate of co-owners to build up financial reserves (contingency fund) to be used to pay for future work related to major repairs and replacements of the common portions. The method of allocation (share) is the same as that for general common expenses, that is to say according to the relative value of each fraction. However, article 1072 sub-paragraph 2 of the Civil Code of Quebec limits the application of this rule. It specifies that in order to establish the co-owner’s contribution to the contingency fund, their respective rights on the common for restricted use portions may be taken into account. For example, the declaration of co-ownership could provide for a provision allowing to charge to a co-owner the costs associated with the replacement of a terrace of which it has exclusive use.

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09/08/2022

Can part of the money accumulated in the contingency fund be used to set up a self-insurance fund?

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…...

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Contingency Fund : Can I be reimbursed ?

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?...

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Replacing windows, reroofing or rehabilitating underground parking slabs, to name but a few, is usually very expensive. Upgrading the common portions generally represents significant costs for the co-ownership and managing them can be complex. This reality is accentuated by the aging of Quebec's housing stock and the new obligations introduced…...

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Contribution and distribution

Co-ownerships must set up a contingency fund to finance future work expenses. When it comes to major repairs or the replacement of common portions, consideration is given to the obligation imposed on the syndicate to preserve the building and its corollary: the constitution of a contingency fund. This fund is…...

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Can there be a limit on the contribution to the contingency fund?

I am a recent co-owner. The building I live in has 10 units. The contribution to contingency fund is substantial. In fact, it represents 20% of the budget of the co-ownership! That seems excessive. Question: Is there a ceiling to the amounts to be paid in the contingency fund?...

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The contingency fund is set up on the basis of forward planning limited to certain works, namely those aimed at the conservation of the common portions. This collective savings thus makes it possible to finance the execution of works allowing the rehabilitation of the common portions as well as the common…...

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