Definition : Management contract

Contract that determines the obligations and the method of remuneration of the condo manager. It can take the form of a contract for services (of enterprise) or of a contract of employment. To improve co-ownership management and increase the manager's transparency with respect to a syndicate of co-owners, the Regroupement des gestionnaires et copropriétaires du Québec (Québec Co-owners and Manager Association)  has created a standard service contract designed specifically for managers and directors. This contract determines a restrictive list of specific services which gives rise to the payment of additional remuneration. Anything not included in this list is included in the manager's annual fee.

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Responsible for the orderly management, the manager plays a key role in a co-ownership. Its function is generally under the authority of the board of directors. Similarly to the directors, his function ensues from the preservation of the immovable for which he is responsible. The objective is to ease the director’s tasks, and not to replace them, so that they can better exercise their decision-making powers. Truly the one man band of a co-ownership, the manager must deploy his experience and knowledge for the benefit of the syndicate of co-owners for whom he works. A review of the various aspects of his function.  
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The qualification of the contractual relationship between the syndicate and the condo manager is of paramount importance since the rules of termination are not the same, whether it is a contract for services or a contract of employment. In most cases, a person working on a regular basis for the co-ownership is deemed to be an employee governed by a "contract of employment", and not an independent contractor. Article 2085 of the Civil Code of Québec defines the "contract of employment" as a contract, verbal or written, by which a person, the employee, undertakes, for a limited time and for remuneration, to do work under the direction or control of another person, the employer.
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  A contract usually has a term. This is the case with regard to the contractual relationship between the syndicate and its condo manager. It may last for years or end quickly. Some co-ownerships are loyal to their manager, while others change their allegiance or no longer want his services. That being said, there are several reasons for the termination of the contractual relationship such as:  
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  The condo manager must stipulate, in the contract for services, the scope and the cost of his services for the co-ownership’s day-to-day management. Day-to-day management includes the usual acts usually included in the basic package. The manager may also charge for additional remuneration for "supplementary" services. Therefore, it is necessary to specify the services included in “day-to-day management”, to avoid arguments, or having to pay unforeseen additional fees.  
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  The condo manager’s tasks are numerous. Therefore, his civil liability could be engaged. If he is at fault, he may be exposed to recourses or claims for compensation, whether by the syndicate or the co-owners themselves. It is therefore imperative that he takes out civil liability insurance for the term of his contract for services.    
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The work of the condo manager is not governed by Law. As a general rule, it is up to the board of directors to set the guidelines of the management contract, according to the size and characteristics of the co-ownership. As for the terms and conditions of appointment and replacement of the manager, they are generally provided in the constituting act of the declaration of co-ownership. Although there is no provision of the law requiring a written contract with the manager, it is strongly recommended that one be executed. This document is essential to the sound management of a co-ownership. It will avoid misunderstandings on the nature of the services to be rendered, as well as their financial terms and conditions of execution. Essentially, there are two types of contractual arrangements between a syndicate of co-owners and a manager: the contract of employment and the contract for services.
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