Distinguishing between the function of the co-ownership manager (gérant) and the condo manager (gestionnaire) is not an easy task; most participants who work in the field of a co-ownership struggle with this issue. The co-ownership manager has decision-making powers regarding the management of the co-ownership whereas the condo manager acts as an advisor and is the one who implements the decisions made by the board of directors.
What is a co-ownership manager?
Normally, the board of directors assumes the syndicate of co-owners' day-to-day administration; nevertheless, section 1085 of the Civil Code of Québec authorizes the syndicate to entrust a co-ownership manager with some powers generally assumed by the board of directors. The co-ownership manager can be chosen from the co-owners or he can be a third party member. As for the second paragraph of section 1085 C.c.Q., it states that the "manager acts as an administrator of the property of others charged with simple administration"; this precision is useful as it clarifies the status, the powers and the duties of the co-ownership manager.
Mission of the co-ownership manager
Generally, the declaration of co-ownership does not define the powers and the duties of the co-ownership manager and this is why it's important to refer to the law. Section 1301 of the Civil Code of Québec states that the co-ownership manager "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 intended". Section 1302 C.c.Q. stipulates that the co-ownership manager 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 ...”. Furthermore, according to section 1303 C.c.Q., the co-ownership manager "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 changes by the beneficiary or, in case of impediment, by the court”. In brief, the co-ownership manager is a managerial decision-making body for the syndicate who may on its own initiative make certain acts relating to the preservation of the property under his administration.
Powers of the co-ownership manager
Section 1085 of the Civil Code of Québec grants to the co-ownership manager the decision-making powers of the administrator of the property of others in charge of the simple administration; thus, among the tasks that he is entitled to perform, the co-ownership manager could:
The co-ownership manager is entrusted with powers but he also has duties to respect such as to render account; at the end of his administration, he must report on his activities to the syndicate of co-owners as well as to his successor or to the members of the board of directors. The activities and the decisions made by the co-ownership manager will generally be recorded in a written document in which he will also report on the expenses he incurred on behalf of the syndicate as well as the sums of money he has been called upon to manage.
What is a condo manager?
Responsible for the sound management of the co-ownership, the condo manager plans, controls and acts as an advisor; while usually working under the authority of the board of directors, he plays a key role for the syndicate. The condo manager must also ensure the preservation of the immovable for which he is responsible, his objective being to reduce the burden of the syndicate's as well as the board of directors’ tasks without however replacing them.
Mission of the condo manager
Managing a co-ownership is a delicate and often a complex task; to improve co-ownership management, the directors would be wise to retain the services of a competent condo manager in whom they can entrust with several administrative, financial and technical tasks or limit him to a specific role such as taking care of the accounting.
Powers of the condo manager
As a service provider or an employee of the syndicate, the condo manager has very limited powers; essentially, his role is to implement the decisions made by the board of directors and to safeguard the interests of the co-owners’ community. However, in order to represent the syndicate towards service providers, a specific mandate can be given to the condo manager; in such a case, he would become the mandatary of the syndicate.
WHAT YOU SHOULD KNOW! All syndicates of co-owners who entrust a condo manager with a mandate would have to establish liability insurance for the latter.
WHAT TO KEEP IN MIND: The difference between a co-ownership manager (gérant) and a condo manager (gestionnaire) is fundamental; the co-ownership manager exercises his own decision-making powers within the co-ownership whereas the condo manager is usually a service provider or an employee of the syndicate.
WARNING! Currently, anyone wanting to be a co-ownership manager or a condo manager can and so, without being accountable to any controlling body.
