As of August 14, 2025, a new regulation implementing Bill 16 (adopted in 2019, supplemented in 2024 by Bill 31) will come into effect, strictly regulating divided co-ownerships. It introduces three major requirements: the maintenance log, the study of the contingency fund, and the syndicate's certification. These tools strengthen transparency, proactive management, and financial protection for Quebec buyers and co-owners.
1. Maintenance log: a guarantee of foresight and security
Each co-ownership must now have a professional maintenance log, established or validated by members of a professional body (engineers, architects, certified appraisers, or professional technologists). This document will include:
● An inventory of common portions, materials, and equipment (roof, elevators, ventilation, etc.)
● The condition, estimated lifespan, maintenance history, and 25-year work plan
● An annual update and a professional review every 5 years (or every 10 years for small co-ownerships)
For the buyer, this allows them to reliably assess the building's health and anticipate future costs.
2. Contingency fund study: essential financial clarity
All syndicates must have a contingency fund study conducted every five years by an authorized professional. This study allows:
● To estimate the major work planned over 25 years
● To recommend annual contributions to avoid special assessments
● To verify the sufficiency of available funds
This provides the buyer with greater financial transparency, reduced unforeseen expenses, and sound long-term management.
3. Mandatory syndicate certification: transparency at the time of sale
Starting August 14, 2025, the syndicate must provide a detailed certification to the buyer upon signing a promise to purchase or at the owner's request. This certificate includes:
● The amount and recommendations of the contingency fund
● The history of contributions to common expenses
● Surpluses or deficits in recent financial statements
● Current insurance policies
● Claims, losses, disputes, and major renovations
This process provides the buyer with a complete overview of the financial and technical situation of the co-ownership.
4. Additional protections: security of deposits
Deposits paid when purchasing a new co-ownership must now be deposited in trust and managed by authorized professionals. This protects buyers against misuse of funds before delivery, strengthening confidence in new real estate projects.
5. Concrete impacts for the buyer: clear benefits
Aspect: Advantage for the Buyer
These measures allow buyers to make informed decisions, better anticipate costs, and negotiate with greater confidence.
6. Some challenges to consider
The implementation of the measures could lead to an increase in co-ownership fees in the short term, particularly to adequately fund the contingency fund. Furthermore, some organizations such as QPAREB point out that the certificate is issued after the promise to purchase, which limits access to information before the commitment and poses a transparency issue.
7. Why this reform is a real boon for buyers
This reform strengthens:
● Data reliability and inspection quality
● Forecasting of future costs and stability of assessments
● Security of funds and rigorous processes
● Increased value for well-managed buildings
● Confidence in transactions and syndicate governance
Conclusion
The reform, which comes into effect on August 14, 2025, marks a major turning point in co-ownership management in Quebec. It offers buyers greater security, reliable information, and greater cost control, while promoting the sustainability of the housing stock. Long-awaited since the adoption of Bill 16, this regulation provides a more professional framework. Whether you are buying your first property or a rental property, it allows you to make an informed choice. By preparing your file now (requests to the syndicate, consultation of studies, request for certification), you will be in a favorable position to buy with confidence.
Nathalie Audet, Residential Real Estate Broker
3299 Rue Beaubien E,
Montreal, QC H1X 1G4
Office Tel.: 514 374-4000
Cell Tel.: 514 966-4417
Email: [email protected]
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