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Obligations of a syndicate of co-owners: Your rights as a condo owner!

Since the turn of the 2000s, condo buildings have sprung up in all major cities in the province. If this way of life is attractive for owners looking for urban comfort, the fact remains that it involves rubbing shoulders with other owners with only thin walls in between. Disputes between neighbours are, therefore, an integral part of the reality of condominium living, as well as with the condominium syndicate!

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This often misunderstood entity is a source of friction and conflict. Is the syndicate doing a good job? For which part of the building is the syndicate or owner responsible? To obtain the answer to these questions, it is necessary to turn to the declaration of co-ownership as well as the law.

JuriGo can help you assert your rights as a co-owner, just contact us to meet with a specialized lawyer!

Know the contents of your condominium declaration!

Condo buildings represent a situation of divided co-ownership. There are private portions belonging exclusively to the owners concerned as well as common portions which belong to all of the co-owners.

To ensure the sound administration of these areas, a declaration of co-ownership must be registered in the Land Register to specify the extent of the rights and obligations of the syndicate, the Board of Directors, and the co-owners.

It is divided into three separate documents, the first being the act constituting the co-ownership. This document acts as the foundation of the co-ownership since it serves to establish its purpose, define the common and private portions, specify the relative value of each portion, and determine the share for the common expenses of each co-owner. The number of votes cast at the meeting is also indicated in the same document.

The condo by-laws are the second document forming part of the declaration of co-ownership which serves primarily to establish the rules relating to the use of the private and common portions. The more common portions there are in the building, the more detailed the rules will be. For example, if there is a pool or a gymnasium, there is a strong likelihood that the building’s regulations will provide for the hours of operation to limit its use.

Finally, the description of the fractions constitutes the most technical document of the declaration of co-ownership since it includes the cadastral designation of the common and private portions as well as a description of the easements and other real rights attached to the immovable.

Why is it essential to know the contents of your condominium declaration? Because it establishes your rights and obligations as a co-owner. To be able to benefit from these rights, you must know and understand them well.

What is a condo syndicate?

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In simple terms, the syndicate is a legal entity set up to facilitate the administration of a divided co-ownership. In doing so, all the owners are part of it and since the syndicate has a separate legal personality, it is authorized to take steps to administer the property. But with rights also come obligations so here’s everything you need to know about your condo syndicate’s powers and duties!

Moreover, the union’s main obligation is to ensure the conservation of the building. This general duty is however very encompassing and includes in particular the maintenance of the building and its common parts, the safeguarding of its rights, as well as the implementation of the various necessary works.

Under the law, the condo syndicate is vested with the powers of simple administration of the co-ownership and must, therefore, obtain the approval of the co-owners when their work goes beyond their authority. These include expansion, excavation, or other major projects.

The second obligation of the condominium syndicate is the creation of a contingency fund. While this is one of the most important obligations to meet, it is the one that is most neglected in practice. Under the law, each co-owner must contribute at least 5% of his contributions to the common expenses to the provident fund.

It must remain liquid and available at all times as it is used to pay for important work. In the absence of a contingency fund, the co-owners will have to pay for the work out of their own pockets!

As a corollary to its obligation to maintain the property, the condo syndicate should also take out insurance. It is required by law to have insurance against all the usual risks for the whole immovable – the common and private portions. Only the improvements made by a co-owner are excluded.

When authorized through a general meeting of the co-owners, the syndicate also has the power to exercise certain rights, including the acquisition or sale of certain goods. It is, however, require to send a copy of the documents and contracts to the co-owners.

What can you do if the syndicate does not meet its obligations? Since the syndicate acts through an elected board of directors, you have the option to wait until the next election to remove existing officers.

Another option is to consult a lawyer specializing in divided co-ownership law to compel them to respect the co-ownership declaration and your rights.

The Powers of the Board of Directors

Like any corporation, the syndicate acts through its representatives, that is, the board of directors! This board is composed of co-owners elected under the provisions of the by-laws of the building. But what, precisely, is the extent of its powers with regards to the co-owners?

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First of all, the board of directors is entitled to perform all acts of simple administration. These are, in particular, the maintenance and conservation of the co-ownership, and when the proposed action exceeds this threshold, the decision to carry out the process must be given voted upon by the co-owners through a general meeting.

Secondly, the Board of Directors acts as an agent of the syndicate in that it is responsible for managing the affairs of the corporation. This involves carrying out the usual legal and administrative formalities, in addition to administering the funds available to the corporation.

In order to provide for the work required to maintain the condominium, the Board of Directors must prepare a budget for the payment of recurring annual expenses. It is also common for a consultation to be held with the meeting of co-owners on this subject.

The Board must also call meetings of co-owners at annual meetings or at special meetings by means of a notice containing the date, time, and place of the meeting together with an agenda.

What is a manager’s role in a divided co-ownership? In condo buildings of some importance, it is common for a manager to be appointed to oversee the day-to-day administration. This person may be a co-owner of the building or an administrator of the property of others appointed for the purpose of overseeing work or maintenance.

The rights and obligations of co-owners to the condo syndicate

Obviously, your status as a co-owner does not only give you rights but also a list of obligations that you must respect to ensure the proper functioning of the co-ownership. These obligations arise from the declaration of ownership as well as from the law. Your primary obligation is to pay your contributions to the contingency fund.

Since this fund is set up to cover major or unforeseen work, it is imperative that each co-owner pays his minimum contribution as it becomes due. What happens if you refuse to make those contributions?

Doing so could cause significant and negative consequences for you because under the Civil Code, when a co-owner has been in default for more than 30 days for his contribution to the contingency fund, the condo syndicate can register a lien on his fraction. This security will be used to guarantee all claims outstanding from the co-owner.

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Can a co-owner recover or claim his contributions to the contingency fund? Absolutely not! The co-owners contributing to the fund don’t own the money deposited in the fund. If a co-owner decides to sell his unit, he will not recover any of his contributions. The same goes for a new co-owner who will benefit from the contingency fund even if he has contributed for only a short time.

Being a co-owner, he must also provide access to his unit or private portion in case of work that is necessary for the conservation of the building. The syndicate can also take legal action and obtain an injunction against a co-owner refusing to give access to his private portion.

Does a condo owner have the right to rent his part? Absolutely! However, the unit owner must inform the condo syndicate of this situation since they will have to interact with the tenant in certain cases. Moreover, in the event of a disturbance between the tenant and the other co-owners, the syndicate is entitled to ask the co-owner of the rented unit to cancel the lease.

Finally, the law also confers a right of use of the premises to the owner of a fraction allowing him to use it fully, to rent it, and even to carry out major works that affect only his portion. This general provision cannot be disregarded by the corporation.

How does voting at the meeting of co-owners work?

If you are not a member of the condominium syndicate, knowing how the vote works at the meeting is your best way to assert your rights in front of other co-owners. How does this meeting work? The meeting of co-owners is the second component of the condominium syndicate which serves as a balance for powers granted to the board of directors.

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Only the assembly of the co-owners can authorize work that goes beyond the simple administration of the property. Indeed, any decision relating, for example, to the conversion of the co-ownership or to the modification of the acts must be approved by a general vote.

Each co-owner is entitled to receive a notice of the annual or special meeting. The notice concerning the annual meeting shall contain the financial statement of the syndicate, the estimated budget, and any proposal for changes to the operation of the co-ownership.

How is a quorum for the meeting obtained? Decisions during a meeting of co-owners are not valid unless a quorum was present. According to the provisions of the Civil Code, there will be a quorum at a meeting of owners if owners holding the majority of votes are present. Failure to meet this quorum will invalidate the decisions taken and the meeting must be rescheduled to another day.

How is the vote of each co-owner determined at the meeting? Based on the relative value of his fraction! Indeed, depending on the value determined in the deed of incorporation of the co-ownership, each co-owner holds a voting right proportional to the value of his private portion which is established in the declaration of co-ownership.

Different majorities depending on the type of vote and co-ownership are also provided for! Knowing that the situation from one property to another is likely to differ, the law provides for different minimum majorities depending on the situation.

In so-called ordinary situations, a simple majority of votes is sufficient for the resolutions of the assembly to be adopted. However, special situations may require the attendance of double the majority.

This is particularly the case when the vote concerns the acquisition or sale of real estate, major works, construction of new buildings, and other similar procedures. In such a case, the majority required is that of the majority of the owners who represent three-quarters of the votes of all owners.

If the meeting tackles more important decisions such as the change in purpose of the condominium, for example, the required majority is even higher and requires the approval of three-quarters of the owners holding 90% of the vote.

What are the solutions to condominium disputes? Advantages of mediation with a lawyer!

Since you and your neighbours share a co-ownership status in the building and are separated only by a wall a few inches thick, preserving good relationships should be a priority, even in the event of a conflict. That’s why mediation is a very good way to resolve condominium disputes!

Many lawyers now specialize in this branch of the law to offer dispute resolution that end harmoniously as well as a few other benefits!

Mediation is a strictly confidential process. In fact, when you consider going to court, remember that public justice forces you to “wash your dirty laundry” in public. In contrast, mediation, being a private proceeding, preserves your privacy and that of the dispute.

An amicable settlement of the dispute. While a judge is responsible for hearing both sides of a dispute before reaching a verdict, the mediator is instead responsible for listening, proposing solutions, and promoting reconciliation without imposing a final decision. It is a way to reach a compromise with your neighbour and to preserve a modicum of neighbourly ties.

A less expensive solution. Although mediation sessions represent a certain financial cost, the fact remains that the cost is lower than getting lawyers on both sides of the conflict.

Mutual consent. No one can drag another individual before a mediator and force him to find a common ground. Attendance at a mediation is, therefore, dependent on the consent of the parties, as stipulated in the Quebec Code of Civil Procedure. However, settling the dispute out of court at a lower cost is often a convincing argument to get someone to agree to the process.

Would you like to resolve a problem about your condo quickly and efficiently? Contact JuriGo to get in touch with a qualified condominium mediator lawyer!

Assert your rights with the help of a lawyer from JuriGo!

Is the syndicate or the Board giving you a hard time? Know that as a co-owner of a condo, you have rights as those in the syndicate and it is up to you to enforce them. While it is easier said than done, an experienced lawyer can provide you with valuable assistance.

JuriGo has partnered with many lawyers who specialize in divided condominium law in all regions of Quebec. This is your chance to resolve the fight, once and for all!

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