{"id":14361,"date":"2013-08-16T14:32:20","date_gmt":"2013-08-16T14:32:20","guid":{"rendered":"http:\/\/clients-conceptsk9.com\/azran-dev\/uncategorized\/le-fonds-de-prevoyance-en-copropriete-au-quebec\/"},"modified":"2025-01-15T10:06:38","modified_gmt":"2025-01-15T15:06:38","slug":"the-contingency-fund-in-co-ownership-in-quebec","status":"publish","type":"post","link":"https:\/\/azran.ca\/en\/the-contingency-fund-in-co-ownership-in-quebec\/","title":{"rendered":"The Contingency Fund in Co-ownership in Quebec"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=””]The payment of common expenses (or condo fees) is probably the most well-known obligation on the part of a co-owner.
\nWhen visiting a condo for sale, one of the main questions for potential buyers is how much will have to be paid monthly for the payment of common expenses.
\nIndeed, no one wants to pay a high amount and a building with low condo fees is often given increased importance.
\nBut it is often in these cases that the contingency fund is insufficient.
\nUsually, this perception of co-ownership does not reflect the building’s administration that is intended to be sound and efficient. <\/p>\n

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Under article 1064 of the Civil Code of Qu\u00e9bec<\/em>, the basic principle is established to the effect that:<\/p>\n

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” each of the co-owners contributes, in proportion to the relative value of his fraction, to the expenses <\/em>resulting from the co-ownership and the operation of the immovable, as well as to the contingency fund established pursuant to article 1071 (…<\/em> )”.<\/p>\n<\/blockquote>\n

Thus, it is precisely article 1071 of the Civil Code of Quebec<\/em> that stipulates that:<\/p>\n

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\u00ab The syndicate establishes, based on the estimated cost of major repairs and the cost of replacing the common elements, a contingency fund, liquid and available in the short term, allocated solely to these repairs and replacements.
\nThis fund is the property of the syndicate <\/em> \u00bb.<\/p>\n<\/blockquote>\n

Finally, article 1072 of the Civil Code of Qu\u00e9bec<\/em> indicates how the contribution to common expenses is established:<\/p>\n

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\u00ab Each year, the board of directors determines, after consulting the meeting of co-owners, the contribution of the co-owners to the common expenses, after determining the sums necessary to meet the expenses arising from the co-ownership and the operation of the immovable and the sums to be paid into the contingency fund.
\nThe co-owners’ contribution to the contingency fund is at least 5 per cent.
\n100 (5%) of their contribution to common expenses.
\nTo establish this, account may be taken of the respective rights of the co-owners on the common areas for restricted use (…) <\/em> \u00bb.<\/p>\n<\/blockquote>\n<\/div>\n

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By reading these three (3) articles, we can see that common expenses can be divided in two ways: common expenses for daily expenses, and those related to major repairs and the replacement cost of common portions that will be deposited in the contingency fund.
\nThe sums in the contingency fund<\/a><\/strong> cannot therefore be used for anything other than what is provided for in the law.
\nThus, it is forbidden to draw from this account to:<\/p>\n