Definition : Contingency fund

A monetary reserve, funded with the contributions of co-owners, to fund major repairs and the replacement of common portions of the immovable, as opposed from their mere maintenance.

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Question: After the sale of my apartment, can I ask for the refund of the contributions I paid into the contingency fund?
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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.
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                                                                                                                            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.
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Common expenses or “condo fees”; you will have to pay them once you become an co-owner. They are an important element to consider before your purchase.
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To avoid financial problems, it is important to verify, before your purchase, that the co-ownership has implemented sound management practices and controls of its expenses. To do so, you should ask questions to your vendor to find out if the syndicate keeps adequate financial records.
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Les sommes investies dans le fonds de prévoyance doivent être déposées dans un établissement financier, où elles doivent demeurer liquides et disponibles à court terme, c’est-à-dire accessibles sur avis de 30 jours.
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La gestion d’un patrimoine immobilier nécessite la mise en place de solutions informatiques performantes afin d’assurer une parfaite connaissance de l’immeuble. Les outils informatiques appropriés permettent une gestion efficace et économique de l’état de l’immeuble, mais facilitent aussi la consultation et la mise à jour rapide des informations concernant les composantes de l’immeuble (ex. : le répertoire des équipements existants, leur état, les opérations effectuées, l’entretien et les correctifs à effectuer, etc.).
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Le plan de gestion d’actifs décrit et chiffre les mesures prises par le conseil d’administration relativement au fonds de prévoyance, afin d’assurer la conservation et l’entretien du patrimoine immobilier. Ce plan définit le scénario d’intervention visant à maintenir l’actif, quantifie le coût de sa mise en œuvre et établit la stratégie de financement. Il précise donc : Le niveau d’entretien; Les correctifs à apporter à l’immeuble; L’estimation du montant du fonds de prévoyance et de l’entretien; Le scénario choisi par le conseil d’administration.
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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.
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  I have been living for a year in a condo I bought in a recently built building. To my surprise, there is still no contingency fund being funded. We pay the common expenses of the immovable monthly (maintenance, snow removal, condo insurance), but no 5% of the budget contribution to "Contingency fund". Yet, a lawyer friend told me it was mandatory! Question: Is this normal?
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Suite à l'achat de notre condo il y a 1 an, on nous a avisé que la répartition des travaux dans l'immeuble se faisait sur le principe de la bonne foi. Le bâtiment a aujourd'hui 25 ans et de sérieuses réparations s'en viennent... Nous sommes fermement décidés à appliquer la déclaration de copropriété que tout le monde ici semble ignorer. Nous souhaitons également démarrer rapidement un fonds de prévoyance car celui-ci n'a jamais été créé ! Cela nous semble assez incroyable : le syndicat n'a-t-il pas l’obligation de constituer un fonds de prévoyance?
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