Preparing a budget forecast is an unavoidable task in co ownership. Its preparation, preliminary examination and adoption will ensure the proper functioning of the syndicate of co-owners. It is up to the Board of Directors to define its terms, in view of the expenses that will have to be paid to allow a syndicate to meet its obligations. The budget also makes it possible to fix the amount of the contributions of each co-owner to the expenses of the co-ownership.
It will be prepared by the Board of Directors or property manager, based on the amounts spent in preceding financial periods, as well as anticipated non-recurring expenses. The preparation of the budget forecast requires time and rigor.
A manager generally has the responsibility of the accounting and financial management of the co-ownership. When the syndicate hires an unpaid manager, either a resident or an outside source, it is in its interest to prevent any type of deficient management, if not fraud. However, the absence of clear standards in relation with the management of the funds of the syndicate renders the syndicate vulnerable to misappropriation or unauthorized use of its funds.
The law provides that a syndicate must keep a register at the disposal of the co-owners. The majority of declarations of co-ownership detail the items it contains. This register is the memory of the syndicate, and consequently, its archives. In is thus invaluable. Much more than a witness to the sound management of an immovable, it is its prime instrument. Therefore, preservation and access are the hallmarks of this register.