Adoption of the regulation implementing Bill 16

A new regulation now governs the management of divided co-ownerships in Québec. Derived from Bill 16, enhanced by Bill 31, and incorporated into the Civil Code of Québec, this framework aims to strengthen financial predictability, improve the governance of syndicates, and ensure the long-term sustainability of the real estate stock. It was published in the Gazette officielle on July 30 and will come into force on August 14, 2025. Below are the main changes you need to know.

A Structured, Standardized, and Mandatory Maintenance Logbook

The maintenance logbook becomes a central document in the management of co-owned properties. From now on:

• It is mandatory for all divided co-ownership buildings;

• It must be drafted or reviewed by an independent qualified professional (engineer, architect, chartered appraiser, or professional technologist) with no ties to the co-ownership;

• It must be updated annually by the board of directors;

• It must be reviewed every five years by a qualified professional, or every ten years in certain cases (buildings with a maximum of 8 private units or 3 above-ground storeys. The same applies to horizontal co-ownerships, but in such cases, it is advisable to consult a notary or lawyer to confirm whether your property legally qualifies as a co-ownership, as this is a complex issue), following adjustments introduced by Bill 31.

Its content must include, in particular:

• A detailed inventory and description of the materials, equipment, and systems located in the common portions, as well as those located in private portions but under the responsibility of the syndicate;

• A plan for major repairs and replacements expected over a 25-year period;

• A record of past interventions (maintenance, repairs, warranties, contracts, inspections, etc.) performed on these materials or equipment.

A Periodic Study of the Contingency Fund

To foster better long-term financial planning, a contingency fund study becomes mandatory every five years. This study:

• Is based on data from the maintenance logbook;

• Must be carried out by an independent qualified professional (engineer, architect, chartered appraiser, professional technologist, or CPA);

• Establishes a long-term cost estimate, recommends appropriate contributions, and sets a minimum threshold to be maintained at the beginning of each fiscal year;

• Explains the methodology used to arrive at these estimates.

This requirement is intended to avoid unforeseen special assessments and promote sound long-term financial management.

A New Certificate for Buyers

Before the sale of a unit, the co-ownership syndicate will now be required to provide, upon request of the selling co-owner, a certificate consolidating several key pieces of information, including:

• The balances of the funds (contingency and self-insurance funds) at the time the certificate is issued;

• The recommendations from the contingency fund study regarding the amount that should be in this fund at the beginning of the current fiscal year;

• The common charges (condo fees) required and paid over the past three years;

• Any surpluses or deficits recorded in the financial statements for the last three fiscal years;

• The current year's operating budget;

• Major work completed or planned;

• Ongoing litigation;

• Recent amendments to the declaration of co-ownership (within the last three years).

Although this is a new document, the certificate aims to provide increased transparency, allowing prospective buyers to adequately assess the building’s financial and technical situation.

Rules on Deposits and Regulatory Transition

For new real estate projects, deposits required from buyers must now be paid to a professional authorized to hold funds in trust (notary, lawyer, CPA, or certified administrator). Promoters are no longer permitted to cash these amounts directly, thereby enhancing buyer protection.

Documents already produced (maintenance logbooks or contingency fund studies) within the last two years may be recognized as valid for five years, provided they meet the regulatory requirements (prepared by an independent qualified professional, etc.).

Modernized Management Focused on Long-Term Sustainability

Taken together, these measures are designed to promote more proactive, transparent, and professional management of divided co-ownerships. They address long-standing concerns expressed by stakeholders in the sector.

For more information, we invite you to attend our symposium scheduled for Friday, September 12, where the practical implications of this new regulatory framework will be discussed in detail.

Consult the decree of the regulation published in the Official Gazette of July 30, 2025.