An account opened by a financial institution in the syndicate’s name to deposit the co-owners contributions to the contingency fund . This distinct account should be set up to avoid intermingling the amounts deposited to the general operation fund (for day-to-day operations) with those deposited into the contingency fund and into the self-insurance fund.
The Contingency Fund is to be used strictly for major repairs and replacements of common portions. It should not be used to fund their maintenance.
November 1st 2016 - A condominium syndicate has the obligation to report its operations using the fund basis of accounting. The article 1071 of the Civil Code of Quebec imposes indeed the creation of a contingency fund. Every condominium has to set up accounts distinguishing the general fund for common operations, sometimes called the administration funds, and the contingency funds.
I am a recent co-owner. The building I live in has 10 units. The contribution to contingency fund is substantial. In fact, it represents 20% of the budget of the co-ownership! That seems excessive.
Question: Is there a ceiling to the amounts to be paid in the contingency fund
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With the adoption of the Civil Code of Québec in 1994, to fill a void in the Law, the Quebec legislature introduced the obligation upon a syndicate of co-owners to fund a "contingency fund”. Prior to the enactment of the Civil Code, it was a frequent occurrence for co-ownerships to have a "reserve fund", although the Civil Code of Lower Canada was mute on this issue. Most of the time, this fund was inadequate, due to the low level of contributions paid into it.