On July 30, 2025, the Government of Québec published a regulation in the Gazette officielle du Québec, implementing major provisions stemming from Bills 16 and 31. This regulation imposes new obligations on syndicates of co-owners, notably regarding transparency, financial management, and building maintenance.
The new regulation provides a framework and clarifies several essential aspects of managing divided co-ownership buildings. It introduces the obligation for syndicates of co-owners to provide the selling co-owner, upon request, with a certificate when selling a fraction of co-ownership. This document is crucial to ensure transparency and protect prospective buyers. The certificate provides essential information on the condition of the building and the syndicate’s finances, particularly regarding planned major repairs, thereby enabling buyers to make a more informed decision.
In addition to this certificate, the regulation establishes the requirements for creating and maintaining a maintenance logbook, managing the contingency fund, and setting rules for holding deposits in trust during a purchase, all aimed at protecting the interests of buyers and co-owners and preserving long-term real estate assets.
Maintenance Logbook
The maintenance logbook is a central document for managing the common portions of a co-ownership building. The regulation requires that this logbook be prepared by a qualified professional who is a member of one of the following professional orders: the Ordre des ingénieurs du Québec, the Ordre des architectes du Québec, the Ordre des technologues professionnels du Québec, or the Ordre des évaluateurs agréés du Québec. Their professional activities must primarily concern management, construction, renovation, appraisal, or building inspection. Furthermore, these professionals must not be members of the board of directors, managers, co-owners, or occupants of the building concerned, nor the spouse of such a person. They must also not be directors, officers, shareholders, or employees of a legal entity, partnership, or trust that owns, occupies, or manages the building, ensuring impartial and rigorous management.
The maintenance logbook must include a detailed inventory and description of the common portions, as well as the materials, devices, and equipment that compose them. It must also list equipment installed in private portions but maintained by the syndicate. Each element must be accompanied by its installation date (if known), maintenance work performed and required, and any relevant contracts, inspection reports, or manufacturer’s maintenance manuals. The logbook must also include an assessment of the remaining useful life of materials, devices, and components, as well as a plan for repairs over the next 25 years.
This logbook must be updated annually by the syndicate’s board of directors to reflect the building’s current condition and needs. If certain work has not been performed despite being listed in the logbook, the update must explain the reasons for the omission.
In addition, the logbook must be reviewed at least every five years by a qualified professional from one of the aforementioned professional orders. This review ensures that the information remains accurate and that necessary work has been completed. However, for small buildings with a maximum of eight private portions or three above-ground floors, a review every ten years will suffice. The same applies to horizontal co-ownerships where the entire building is private. In such cases, consulting a notary or lawyer is recommended to confirm that the property truly qualifies as horizontal co-ownership, as this requires specialized expertise.
Contingency Fund Study
The contingency fund study is essential to anticipate the costs of major repairs and replacement of common portions in a co-ownership building. This study must be conducted every five years, either by a member of one of the professional orders mentioned previously for the maintenance logbook or by a member of the Ordre des comptables professionnels agréés du Québec. The contingency fund study relies on the information from the maintenance logbook. It must include an estimate of the cost of each major repair and replacement of common portions planned over the next 25 years, as well as recommendations on the amount that should be available in the contingency fund at the start of each year.
The study must also determine the annual contributions required to ensure the contingency fund can cover all upcoming expenses, thereby preventing a shortfall that could compromise the syndicate’s ability to carry out repairs.
Finally, the study must specify the methodology used to establish the estimated amounts mentioned above.
Certificate from the syndicate when selling a fraction of co-ownership
The certificate issued by the syndicate when selling a fraction of co-ownership allows prospective buyers to know the condition of the building and the syndicate’s finances before making a decision. This certificate must include information such as:
The total amount of the contingency fund and the recommendations from the study regarding the minimum amount to maintain;
Co-owners’ contributions to common expenses over the past three years;
The amount of liquid assets available to cover current condominium expenses;
The annual surplus or deficit from the last three financial statements;
Any losses affecting the private portion in question over the past five years;
Major repairs completed or planned for the building, as well as inspections or expert assessments conducted.
This certificate aims to ensure transparency in the sale of a co-ownership unit and guarantees that the buyer is fully informed about the financial and structural aspects of the property.
Deposit in Trust
The regulation also governs the deposit of down payments with a professional during the purchase of a fraction of co-ownership. These deposits must be held in a trust account managed by a member of the Barreau du Québec, the Chambre des notaires du Québec, the Ordre des administrateurs agréés du Québec, or the Ordre des comptables professionnels agréés du Québec. The developer or builder cannot directly manage these funds, thus providing increased financial protection for buyers. The deposit must be paid directly by the buyer to the designated professional, ensuring the funds remain protected until the property is delivered.
Transitional provisions and entry into force
The new provisions stipulate that maintenance logbooks and contingency fund studies prepared within the two years prior to the regulation’s effective date are valid for five years, provided they comply with the regulation’s requirements (document prepared by a qualified professional, etc.). Syndicates of co-owners that do not yet have a maintenance logbook or contingency fund study will have three years from the effective date to comply with these new obligations. The deadline will therefore be August 14, 2028.
The regulation itself comes into force 15 days after its publication in the Gazette officielle du Québec, on August 14, 2025. Click here to consult the full regulation.
Webradio
To explain the practical implications of this regulatory reform in detail, Condolegal will host a special webradio session on Wednesday, August 20, 2025, at 7:00 p.m. This session will allow co-owners, managers, and real estate law professionals to ask their questions directly to our experts. Here are the details about the special webradio.
Media appearances
Propriétaires de condos: des changements importants pour les copropriétés - Interview with Me Yves Joli-Coeur on LCN
Frais de copropriété: des changements importants à venir pour les propriétaires de condo - Report on TVA Nouvelles
