Definition : Destination - Destination of the private portions

The Goods and Services Tax (GST) and the Quebec Sales Tax (QST) are collected in Quebec on the sale of most goods and services. The application of the Excise Tax Act (Part IX) and the Act respecting the Québec sales tax in respect of expenses incurred by a syndicate of co-owners and the contributions to common expenses it receives from co-owners is a very complex subject. Before registering for the GST and QST files, a syndicate of co-owners has every interest in consulting a tax professional. That said, the question remains: in what situation must a syndicate of co-owners charge GST and QST to a co-owner on his common expenses (condo fees)?

In principle, co-owners have the right to enjoy their private portion as he sees fit. In addition, the law provides for a duty of tolerance on the part of neighbours, i.e. to accept the normal inconveniences that may result from the exercise of the right of ownership by the other. However, there are limitations to this use. In the event that the nuisance caused by an occupant of the building becomes excessive, it constitutes an abnormal neighborhood disturbance. It is common for such a case to constitute a breach of clauses relating to the peaceful enjoyment of the private portions, which are provided for in the by-laws of the immovable. That said, an abnormal neighbourhood disturbance does not systematically constitute a violation of the declaration of co-ownership. It should be noted that in certain circumstances, this type of inconvenience may be punished, even if the perpetrator has not committed any fault.

The destination of the immovable, of the private portions and of the common portions is a fundamental concept in co-ownerships. It is both a real regulator of the rights and obligations of co-owners and a reference value between the permit and the prohibited. The destination of the building is determined in the 1st part of the declaration of co-ownership (constituting act of co-ownership). It is it that also makes it possible to establish the type of co-ownership established and defines the use(s) that can be made of the private and common portions. It can thus be exclusively commercial or residential or residential but with the possibility of practicing a professional activity. It can also be mixed, such as, allowing shops on the ground floor and apartments on the upper floors.  

The declaration of co-ownership includes the set of rules ensuring the efficient organization of a co-ownership. Its knowledge by the members of the board of directors and by each co-owner is essential to the proper operation of the co-ownership. This co-owners reference document is consulted, for example, in the case of work. For a promisor-buyer, the declaration of co-ownership contains a wealth of useful information regarding the conditions of use and enjoyment of the private and common portions. Hence the necessity of reading this document before buying, to avoid unpleasant surprises, especially as to the use one intends to make of his private portion.

The powers of the syndicate are designed according to the collective interest of the co-owners and find their limits in respect of the individual rights of the co-owners guaranteed by the declaration of co-ownership and by the Charter of Human Rights and Freedoms (e.g.: the inviolability of the home). These powers of the syndicate are based on four principles: the preservation of the immovable, the administration of the common portions, the protection of the collective rights and the amendments to the declaration of co-ownership. For this, he must ensure the maintenance in good condition of use and enjoyment of all the common portions. The syndicate may also take legal action against a co-owner. The Civil Code of Quebec gives the syndicate of co-owners extensive powers to administer the co-ownership.

The rules for voting in meeting of co-owners vary depending on the importance of the decision to be made. They require a complex calculations in order to determine whether a the required majority has been reached. To do so, you must make sure that the register of co-owners is up to date, and that the compilation of votes is done according to the relative value specific to each fraction. This reduces the risk of contestation of an adopted resolution. That said, some decisions have extremely important consequences for all co-owners so the requirements in terms of majorities are then higher. For this reason, the law essentially imposes four levels of majority: absolute, enhanced, double.