All chronicles on Condolegal

July 13th 2021 - As of January 1, 2015, Garantie de construction résidentielle (GCR) is the only organization authorized by the Quebec government to administer the mandatory guarantee plan for new dwellings. Our mission is to protect buyers and improve the quality of residential construction. In this article, we will tell you everything you need to know about the mandatory guarantee plan when it comes to divided co-ownership.  

Your co-ownership is exposed to various risks, as an example, fires, water damages, theft and acts of vandalism, which are required to be insured against. When a loss occurs, the insurance of a co-ownership covers the building as well as the general liability of the syndicate of co-owners. For the syndicate, subscribing to this type of insurance is mandatory. The law and most Acts of co‑ownership require it. The insurance contract specifies the coverages offered, as well coverage limits and exclusions, in addition to the deductible amounts.

April 17, 2021 Any co-owner may delegate his right to vote to an mandatary. Thus, with the notice calling the meeting containing agenda, financial statements and budget, there is usually a blank proxy form. However, since there is no requirement for the board to include one, it may be necessary for a co-owner to prepare one himself. A formidable tool at assemblies and an object of covetousness for many when a decisive vote is planned in the co-ownership. However, proxies and their validity are often the subject of unfortunate questions and attempts to counter them. What about it?  

Each syndicate of co-owners has a declaration of co-ownership, which, in principle, should be a veritable bedside book for both the co-owners and the members of the board of directors. However, the declaration of co-ownership is a document that may seem inaccessible at first glance for the latter. This problem can sometimes be increased, when it was more or less well written, more or less long ago. This is not to mention the confusing clauses, which create difficulties of interpretation and even clauses contrary to the legislation that evolved after its publication.

You have just bought your new condo and for some time now, you have been hearing noise that prevents you from peacefully enjoying your unit, or even prevents you from sleeping completely. You question your neighbors and they face the same problem. But noise can stress, exasperate, tire, and even make you sick. What can be done to remedy this problem and regain tranquility? Here is the procedure to follow that we suggest in order to manage the situation.

  In compliance with its legal obligations to preserve the building, a syndicate of co-owners is frequently called upon to retain the services of contractors over the years to carry out, among other things, conversion work in the common portions. In this regard, the directors forming the board of directors of the syndicate have the obligation to act with prudence, honesty and loyalty and in the interest of the community of co-owners, in accordance with Article 322 of the Civil Code of Québec, when awarding a construction contract to one or more contractors. With this in mind, can directors contract with a contractor who offers the syndicate a competitive price in return for a cash payment "under the table", i.e., without paying or remitting the taxes usually payable?

September 3, 2019 - Many syndicates believe entrusting the management of a co-ownership to a volunteer co-owner is the ideal scenario. He is unpaid and lives in the building, which will make it easier for him to solve problems. But in reality, those who take the time to evaluate the pros and cons of the services of a condo manager often discover that his presence could allow a competent administration and generate savings.    

The condo manager is a one-man or one-woman orchestra but is also the unfailing ally of the syndicate of co-owners. Directors who do not have the expertise to properly manage their building should, perhaps, consider using his services. This will prevent the risk of potentially costly errors. Sound building management is essential to avoid slippages that can cause considerable damage to a collectivity of co-owners.

The statement of financial position, also known as the balance sheet, lists the assets, liabilities and net assets of the co-ownership syndicate at a specific time. It is a picture of the financial situation at a given date compared to other statements that usually cover a full fiscal year. The statement of financial position shows assets on one hand and liabilities and net assets on the other. Assets are always equal to liabilities plus net assets. Everyone knows the famous quote "nothing is lost, nothing is created, everything is transformed". This principle is reflected in accounting. The statement of financial position is always balanced since the asset is financed either by the creditors (liabilities) or by the co-owners (the net assets).

The statement of earnings is essential for performance assessment and informed decision-making. This statement is expressly required by the article 1087 of the Civil Code of Québec. It states that the income statement, in addition to the balance sheet, the  budget  and the statement of debts and claims, must accompany the notice of the annual meeting.