July 23, 2019 - Pierre G. Champagne, lawyer and partner at the de Grandpré Joli-Coeur law firm, was interviewed by Marika Wheeler from CBC Radio on the proposed draft Regulation published on July 17, 2019. This Regulation would require syndicates to create an self-insurance fund for their co-ownership, in addition to the contingency fund. The self-insurance fund will be created to cover the highest deductible of the insurance policy of the syndicate.
Almost every insurance policy includes deductibles, in varying amounts according to the insured risk (e.g. fire and water damage). In co-ownerships, deductibles are a factor in the Building insurance, and in the third party liability insurance of the syndicate, directors, general meeting officers, co-ownership manager (gérant) and of the condo manager (gestionnaire). Regarding co-owner’s insurance, generally each home insurance policy contains one or more deductibles for various amounts according with the nature of the loss.
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.
The Law and the overwhelming majority of declarations of co-ownership require that syndicates of co-owners insure their building. This may seem surprising at first glance as the syndicate does not own the private portions nor the common portions. However, its main object is to ensure the preservation and the longevity of the building and to manage and administer it diligently following rules of the trade. This is why the legislator has given to the syndicate an insurable interest and has made it compulsory that it subscribe building insurance.
L’étude du fonds de prévoyance doit-elle être réévaluée régulièrement?
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