The syndicate of co-owners must, to meet the expenses arising from the co-ownership and the operation of the immovable, collect from its members the necessary sums. It is therefore essential that the co-owners meet their financial obligations on an ad hoc basis. However, the failure to pay general or special common expenses (condo fees) is one of the most contentious co-ownership’s issues. The role of the board of directors in this matter is paramount, it is up to it to collect the debts of the syndicate. Unless this task is delegated to the condo manager. The syndicate must therefore take the necessary steps to collect the unpaid sums. A review of the options in such cases.
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?
Even after the transfer of ownership, the buyer benefits from several guarantees. Unless otherwise stated, the sale of a building is subject to a basic guarantee, generally called the "legal guarantee". This guarantee exists by the sole effect of the law, that is to say without it being necessary to provide for it in the contract. Under article 1716 of the Civil Code of Quebec (C.c.Q.), the legal guarantee has two components, namely the guarantee of the right of ownership (1723 C.c.Q.) and the guarantee of quality (1726 C.c.Q.) against hidden defects. This guarantee covers the validity of the right of ownership and guarantees the buyer that the building and its accessories are free from hidden defects likely to make them unfit for use or which reduce its usefulness so much that the buyer would not have bought or would not have paid the same price if they had known them.