Co-owned Syndicate

You are the administrator of your co-ownership and must juggle multiple responsibilities: managing contingencies, accounting and keeping up to date with the laws to follow. If this situation sounds familiar to you, rest assured, we are here to help.

STEP 1: Building health check

Our team will validate the following points:

Funds

Do you have enough in your provident fund (0.5 to 1% of the reconstruction cost)?
Have you set up a self-insurance fund?

Reviews

Have you done your evaluation of the cost of reconstruction?
Have you described your private units (law 141)?
Have you studied the contingency fund and the maintenance log (law 16)?

Work documents

Do you have a maintenance log?
What are your future works (short, medium, long term)?
How do you manage your documents and accounting?
What are your ongoing challenges?

STEP 2: Management transition

It's jump time! As soon as the management changes, there is a transition period to be expected. During this period, the team will make sure, among other things, to make the following changes:

Addition as signatory and administrator at the financial institution and on the business register
Optimization of working documents
Review of financial statements
Action plan on future work and to comply with laws

That's it! The action plan has begun and your co-ownership is healthy. Your documents are up to date, well classified and you have access to them at all times. Now, we are ready to face any unexpected with confidence. Your neighbors will thank you!

Administrative management

Organization of general meetings (votes, minutes, etc.).
Management of archives and files (requests, register, etc.).
Management and recruitment of staff (concierge, administrators, etc.).
Legal assistance (if needed).

Financial management

Maintaining accounts and collecting condo fees.
Management of expenses and payments to suppliers.
Preparation of annual budgets (provident fund, self-insurance, etc.).
Guaranteed investments.

Technical management

Maintenance and upkeep of the common areas of the building.
Coordination of works and repairs.
Monitoring and follow-up of service contracts (fire inspection, etc.).
Up-to-date maintenance book.

Frequently Asked Questions

What is the self-insurance fund (law 141)?

The condominium self-insurance fund is intended to cover insurance deductibles and claims not covered by condominium insurance policies.

The co-owners must contribute financially up to the highest deductible, among all the syndicate's insurance coverage, excluding deductibles related to protection against earthquakes and floods. ( see article 2 of the regulations ).

Important: This fund must be accessible in a separate account from that of the contingency fund or the current account.

Notice: This fund has been mandatory since April 2021.

We will be happy to help you determine the amount of your contribution.

What is the provident fund and law 16?

It is a mutual contingency fund created to cover unforeseen costs related to the maintenance, repair and replacement of the common parts of a condominium building. For example: major roof repairs, elevator renovations or foundation repairs. In short, this fund is specifically created to cover non-routine and major expenses.

This is financed by the contributions of the co-owners which are usually paid monthly in the form of condo fees.

Prior to the entry into force of Law 16, the amount paid from the provident fund must usually be between 0.5% and 1% of the value of the reconstruction cost.

Law 16

The contingency fund study (Law 16) is a professional assessment of the amount needed for the contingency fund of a co-ownership according to the age, the condition of the building and the replacement cost of the various common areas. The purpose of this study is to ensure that the co-ownership has sufficient funds to finance major maintenance and repair work that must be carried out in the building, such as replacing the roof, repairing facades or the renovation of plumbing and electrical systems.

Its particularities:

Provident fund studies must be updated at least every five years.
Contingency fund studies should include an analysis of anticipated expenditures for the next 25 years, instead of the next 10 years, as was the case previously.
Provident fund studies must be carried out by a qualified and independent person, who is not a member of the condominium association.
The results of the provident fund study must be communicated to the co-owners and be included in the documents of the annual general meeting.

In summary, this study aims to strengthen the planning and management of major maintenance and repair work in condominiums.

Note: This study has been in effect since August 14. Buildings have 3 years to comply.

What is the description of the private portions (reference unit - law 141)

The description of the private portions is a document that describes the components of each private unit in a condominium building. This description is essential for taking out home insurance for owners of condominiums, as it helps to determine the limits of insurance coverage.

The description should include a complete listing of all unit features, including flooring, cabinets, counters, walls, ceilings, doors, and windows. It is also important to mention the improvements made to the unit, such as renovations, additions and fittings.

Owners must also keep their description of the private portions up to date and communicate it to the syndicate of co-owners. In the event of a claim, the insurer will use this description to assess the damage and determine the compensation to be paid.

In short, the description of the private portions is a crucial document to ensure that each condominium owner has adequate insurance and to assess the damages in the event of a claim.

Notice: Unions had until June 2020 to comply.

What is the evaluation of the cost of reconstruction (law 141)?

The evaluation of the cost of reconstruction consists in determining the replacement value of a condominium unit in the event of a major disaster, such as a fire or a flood. This appraisal is carried out by a certified appraiser who takes into account many factors such as the area of the unit, the construction materials, the quality of the finishes, the special characteristics, etc. The cost of reconstruction is important in determining the correct insurance coverage for the condominium, as underinsurance can lead to problems in the event of a claim.

Notice: this evaluation is done every 5 years and has been mandatory since April 2021.

What is the maintenance log?

A maintenance book is a document that lists all the information relating to the upkeep and maintenance of a building. It contains information about building equipment and systems, such as heating, plumbing, air conditioning, and elevators, as well as dates of inspection, maintenance, and repair.

The maintenance log allows building owners and managers to track service and maintenance activities and plan future repairs. He can also help maintain the value of the building by ensuring that equipment and systems are in good working order.

In addition, the maintenance log is also important for the legal liability of building owners and managers in the event of accidents or damage caused by poorly maintained equipment. The maintenance log must be updated regularly and be accessible to building owners and managers.

What are the insurance requirements (Law 141)?

For co-owners

It is now mandatory for co-owners to have civil liability coverage if they have owned a divided unit since October 2020. The law requires civil liability to be at least $1 million for buildings under 13 units and $2 million for buildings with 13 or more units.

For board directors and officers

It is now mandatory to take out civil liability coverage for directors and officers. Although the administrators are co-owners residing in the building, they have important responsibilities towards the other residents.

This is why Bill 141 now requires that all directors and officers of the co-ownership be covered by civil liability insurance. This coverage is necessary to protect the syndicate of co-owners or one of the administrators in the event that a fault, error or negligence is committed in the performance of their duties.