Your co-ownership is exposed to various risks, such as fire, water damage, theft and vandalism. When a loss occurs, the insurance of the co-ownership covers the immovable and the civil liability of the syndicate of co-owners.
The syndicate has the obligation to subscribe this type of insurance. The Law and the vast majority of declarations of co-ownership make it compulsory. The insurance contract describes the guarantees offered, their limits, exclusions, and the amounts of the deductibles.
The director plays a leading role in a co-ownership. As a mandatary of the syndicate of co-owners, he ensures the smooth running of the immovable’s day to day business, which implies a working knowledge of the tasks related to this key function. As such, directors must act with prudence, diligence, honesty and loyalty, and never lose sight of the co-owners community interests.
The civil liability of the directors with regard to the tasks incumbent upon them is largely ignored. Thousands of Quebeckers who sit annually on a board of directors, maybe including yourself, are unaware of this state of affairs.
The divided co-ownership of an immovable is not necessarily destined to last forever. The termination of the co-ownership, and by the same token the dissolution and liquidation of the syndicate, is a question that will eventually arise for some co-ownerships. Furthermore, its termination is governed by articles 1108 and 1109 of the Civil Code of Québec, which refer to the rules applicable to legal persons concerning their liquidation.
The appointment of meeting officers is necessary to hold a general meeting of co-owners.The range of their titles and functions are without limitation: president, vice-president, secretary and scrutineer of the general meeting. It is the declaration of co-ownership, in the chapter By-laws of an immovable that provides the rules to be followed. However, the civil liability of a general meeting officer with regard to the tasks incumbent upon him is largely unknown. Yet many Quebeckers accept this charge, while not being aware of this reality.
An indispensable co-ownership document, the maintenance and management logbook is in essence a register tracing the building history, as well as a register of all the operations already carried out or forthcoming thereon. Even though not mandatory, it increases a co-ownership’s resale market attractiveness. In addition, the directors, by availing themselves of such a logbook, demonstrate their concern for good governance and sound management.
The destination of the immovable, of the private portions and of the common portions is a fundamental concept in co-ownerships. The destination allows the determination the type of co-ownership established and defines the use(s) that can be made of the private and common portions. The destination of the immovable can be exclusively residential or commercial or residential but with the possibility of exercising professional activities. It can also be mixed, such as, allowing shops on the ground floor and apartments on the upper floors.
The tasks of the condo manager are numerous. The latter may be mandated to manage the immovable, and thus ensure its preservation and maintenance; implement the decisions of the board of directors; settle major losses, take out the insurance required for your syndicate, but also to enforce the by-laws of the immovable. Therefore, his civil liability may be invoked. If he is at fault, he is exposed to recourses or claims for compensation, whether by the syndicate or the co-owners themselves. It is therefore imperative that civil liability insurance be underwritten for the duration of his contract for service or his contract of employment.
The Syndicate of co-owners plays a crucial role in a co-ownership, as it is its legal representative. A legal person constituted of all the co-owners (the collectivity of the co-owner) and governed by the Civil Code of Quebec. As such, it has rights, obligations but also responsibilities. He has for object the preservation of the immovable, the maintenance and the administration of the common portions and the protection of the collective interests of the co-owners. An overview of its role and its various powers.
The day-to-day administration of the syndicate may even be entrusted to a co-ownership manager who may, but need not be, chosen from among the co-owners. The syndicate of co-owners can thus delegate to the co-ownership manager other tasks and responsibilities that are generally the responsibility of the board of directors (collect the syndicate's claims, publish a notice of legal hypothec on the fraction of defaulting co-owner, instituting legal proceedings for all matters concerning his administration, giving releases and discharges, etc.). Yet, anyone who is in charge of administering property that is not his own or that is not only his own assumes significant responsibilities. That is why - and notwithstanding the co-ownership manager’s best intentions- it is advisable to take out insurance to cover his faults, errors or omissions.