Definition : Developer - Loss of control

The law regulates the liability of contractors and building professionals for any problem related to the quality of construction work. In this regard, the legislator has provided for a specific protection regime for divided co-ownership. Section 1081 of the Civil Code of Québec recognizes the legal interest of any syndicate of co-owners to assert the rights of all co-owners to correct defects that appear, in the short or long term. This could occur during the initial construction of the building, or during work carried out several years after its erection. In short, when problems affect the common portions, the syndicate benefits from several legal warranties. Among them is the one against latent defects, design or construction defects. These warranties are worth their weight in gold, because very often, the cost of the work to be carried out in a co-ownership can be substantial.

Expenses related to the maintenance and administration of the common portions of a co-ownerships start from its constitution as a legal person. It is therefore necessary that each co-ownership sets up, upon publication of the declaration of co-ownership, a Board of Directors to administer it. This board of directors is the executive body of the syndicate and its legal representative. Its members act as the mandataries of the syndicate. To ensure the star up of the syndicate, the developer usually designates in the declaration of co-ownership (by-laws of the immovable), one of its representatives to act as the interim director of the syndicate. His role is to accompany the co-owners, manage the co-ownership and see to the organization of the special transition meeting to elect the new directors to constitute the board of directors.

The right to vote is recognized as an essential element of any modern society, and as such, co-owners cannot be deprived of it except as provided in the law. In addition, each co-owner has, in principle, at the meeting a number of votes proportional to the relative value of his fraction. However, in certain circumstances, it is provided that the co-owner may have his right to vote suspended or reduced, by the sole effect of the law. It is important to know who may be affected by these restrictions and what the consequences are.The voting rights of the co-owners of the immovable can, in certain circumstances, be suspended or reduced. It is important to know who may be affected by these restrictions and their consequences.

As a result of the loss of control of the developer, we have just held the first meeting of co-owners to replace the director who had been appointed by the developer and elect a new board of directors.  However, this director has not reported on his administration since the publication of the declaration of co-ownership!  Even worse, we don't know what he did with the condo fees he collected. Question: What rights do we have against it?