Definition : Asset Management Plan

Every syndicate of co-owners has obligations regarding common portions maintenance. Article 1039 of the Civil Code of Québec provides that the object of the syndicate is the conservation of the immovable, the maintenance and the administration of the common portions. However, this section was amended following the adoption of Bill 16. At the end of the first paragraph, referring to the syndicate of co-ownership, it reads the following sentence: "The legal person must, in particular, see to it that the work necessary for the preservation and maintenance of the immovable is carried out." This duty to preserve the immovable is exercised in particular by the setting up of a maintenance logbook.

Any syndicate of co-owners has obligations to assume in terms of the maintenance of the common portions. The certificate of the state of the immovable is an essential step to ensure the preservation of the immovable. It is a preliminary step before requesting the services of a professional to establish a contingency fund study.  The certificate of the state of the immovable corresponds to a "balance sheet" of the building: it notes the quality of the building, at a specific time. It includes an inventory of the building's components (outdoor spaces, buildings, dwellings, equipment, etc.) that will be evaluated to establish the amounts to be paid into the contingency fund. Although there is no legal obligation to this effect, this document should be prepared by a professional technologist, engineer, architect.

The law provides that the syndicate must keep a register available to the co-owners. Article 342 of the Civil Code of Quebec specifies that the board of directors shall keep the list of members, as well as the books and registers necessary for the proper functioning of the legal person.  This register represents the memory of the building for those who administer it. It constitutes the history of the experience of the condominium from its conception, and this by specifying its maintenance and the work undertaken, while listing the contractors and suppliers who intervened. In this sense, it is invaluable. The syndicate must preserve for organizational and management purposes, or for legal protection and evidence purposes, all documents and information relating to the operation of the co-ownership. That is why "preservation", "access" and "archives" are the hallmarks of this register.

WHAT YOU SHOULD KNOW ! The Asset Management Plan (AMP) is a comprehensive process to ensure the conservation and maintenance of real estate assets. This plan details the information regarding the common elements and the measures required to provide an agreed level of service in the most cost-effective manner, while describing the associated risks. In particular, the AMP defines the intervention scenario to maintain the asset, quantifies the cost of its implementation and establishes the financing strategy, generally over a 10-year planning period. It will be linked to a long-term financial plan that also spans a 10-year period.