Definition : Developer

The new provisions introduced by Bill 16 will bring about many changes regarding the contingency fund in a co-ownership. It will be mandatory to obtain a contingency fund study, which will establish the necessary amounts so that the fund is sufficient to cover the estimated cost of major repairs and replacement of the common elements (art. 1071 of the Civil Code of Quebec). The miminal content of this study and the professionals who will be able to carry it out will be determined in a future government regulation soon to be published. Such study will have to be obtained every five years by the board of directors, which will have to determine the amounts to be paid into this fund, according to the recommendations made in this study.

Question: The syndicate's board of directors made the decision to cut down a tree at the entrance of the property. It was a very old apple tree. It was unpleasant for many people to know that we were constantly walking in the debris of cheekbones that fell on the ground, on the sidewalk or in the parking lot. Finally these apples ended up making a fermentation (very unpleasant smell). Now a co-owner is reproaching for not having voted on this decision at the meeting of co-owners. Is he right?

Since last fall, work to complete the construction of our building has been stopped, while buyers of the top floor units were supposed to move in in December.  Question: Faced with the refusal of a developer or builder to complete the construction of the building, can the syndicate of co-ownership or any co-owner act in any way to either compel the builder to complete the work or obtain compensation?

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.

The presence of a Board of Directors is mandatory in a co-ownership. It is the executive body of the syndicate and its legal representative. Its members act as the mandataries of the syndicate. When a co-ownership is newly constituted, the declaration of co-ownership generally provides for the appointment of a interim director, who exercises the functions of the Board of Directors until the Meeting of co-owners appoints a new board of directors. This transitional period is generally delicate because of the necessarily numerous and complex problems relating to defects in workmanship, latent defects and construction defects. And this is not to mention that the transitional administrator set up by the developer may have a negative role: protect the developer and transfer to the co-ownership of charges incumbent in principle on the developer.  Its appointment Usually, it is the developer who designates him, in accordance with a provision in the declaration of co-ownership (By-laws of the Immovable). Often he appoints one of his  representatives to act as the interim director of the syndicate.

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.

Real estate developers who are not the holders of the appropriate license for the construction of the Régie du Bâtiment du Québec may have a legal existence, be listed in the yellow pages and advertise in newspapers or on the Web. However, before signing a preliminary contract for the purchase of an apartment in a new construction, make sure that the chosen developer is accredited by Garantie de construction residentialielle (GCR) and holder of the sub-category of a license from from the Régie du bâtiment du Québec (RBQ), depending on the type of buildings (house or condo) you want to acquire.

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.

The sale of a residential immovable intended for a natural person who acquires it to live in it, whether it is built or to be built by a builder or developer, must be preceded by a preliminary contract.  Article 1785 of the Civil Code of Quebec obliges the builder to enter into such a prior-contract with the buyer (which precedes the contract of sale itself). This contract formalizes the promise to sell and buy the property by the parties involved in a transaction. In particular, it sets the purchase price of the home, its delivery date and the date of the deed of sale, usually the day on which the buyer will be able to move in. A deposit will usually be required when he signs it.

When you buy in a newly built divided co-ownership, a portion of the fractions of the building (apartment, parking or storage space, etc.), or even all, can be the subject of a notice of legal hypothec of construction. The Civil Code of Quebec introduced this hypothec in order to protect the persons who participated in its construction or renovation (architect, engineer, supplier of materials, workman, contractor or subcontractor) so that they can be reimbursed for work and services carried out on an immovable. As a buyer, will you be required to pay the developer's debts if it defaults on its construction creditors? If so, will the amounts claimed be distributed among all co-owners? And what will happen if they refuse to pay?

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?

Question: Cela fait six mois que je suis dans mon condo, et il y a encore plusieurs unités invendues dans l'immeuble. Je fais partie des administrateurs nouvellement élus sur le premier conseil d'administration de la copropriété, élu lors de l'assemblée extraordinaire pour l'élection du nouveau conseil. Qui doit payer les charges communes rattachées à ces unités invendues : est-ce nous ou le promoteur?

Question: Am I obliged to use the services of the notary appointed by the developer when I am the one who pays for it? What are the rules that apply in this area: who chooses the notary instrumenting the sale? Is it the seller? Is it the buyer? Do we both have to agree on a name? Answer: Section 26 of the Notarial Act provides, in the absence of a specific agreement, that in the case of a sale of immovable, the choice of notary is made: To the buyer, if he pays the sale price in full (cash or with a mortgage); To the seller, if the buyer does not pay the sale price in full (leaving a balance due to the seller).