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 be remedied through the obligation, introduced by Bill 16, to conduct a contingency fund study to which syndicates of co-owners are, or will be, subject.
This study aims to determine, in an objective and documented manner, the amounts that must be paid annually into the contingency fund so that the syndicate is able, when the time comes, to carry out major repairs and replacements of the common portions. It thus helps prevent difficulties arising from a lack of planning or from short-term decisions made by an ill-prepared board of directors.
An overview of the rules relating to the contingency fund study and the transitional measures surrounding these new legislative provisions.
