CO-OWNERSHIP LEXICAL

Document prepared by the syndicat des copropriétaires (condominium owners’ association) containing information on the condition of the condominium. Its form and content are determined by government regulation. This attestation is one of the legal documents to be provided to a promoter-buyer when selling a fraction of a co-ownership. It is important to note that article 1068.1 of the Civil Code of Québec, introduced in December 2019, requires the seller of a fractional co-ownership to provide the promisor-buyer with an attestation from the syndicate as to the condition of the co-ownership. The syndicate must provide this document within 15 days to any co-owners who request it. However, this requirement only applies from the day the new board of directors is appointed, or the promoter loses control of the syndicate.

Tax document issued by the board of directors or manager specifying the amounts of contributions to general and specific common expenses and the dates on which they are due.

A financial document that forecasts and details all expenses and revenues associated with the management and maintenance of a condominium. It is an essential tool used by the syndicate of co-owners to plan and control the co-ownership’s finances. The condominium budget generally includes the following items: – Current expenses, which cover regular expenses such as maintenance, services, insurance premiums, management fees, etc. – Exceptional expenses, which cover unforeseen or non-recurring expenses, often linked to major works or repairs. – Provisions for works, which are intended to build up a financial reserve for future renovation or maintenance work planned for the building. The condominium budget is presented and approved at the general meeting of co-owners, who are responsible for voting on its adoption. Once adopted, it determines the charges and contributions to be paid by each co-owner to cover current expenses and plan for future ones.

A list of maintenance work carried out, or to be carried out, in the building’s common areas, prepared by a building professional. It is a record of all technical information concerning maintenance methods and work carried out in the building. It contains an inventory of common areas and a schedule of work carried out or to be carried out. It forms part of the co-ownership register, and all co-owners who request it must have access to it.

All common costs incurred by the co-ownership. This includes management, maintenance and repair costs. Condominium (“condo”) Common law term referring to real estate that may be either a condominium or an apartment in a condominium building.

A person who owns a share of the property in co-ownership.

Legal system of collective ownership in which several people share the right of ownership of a building. This type of ownership can be either divided co-ownership or undivided co-ownership.

Divided co-ownership is a legal structure whereby an immovable is subject to a declaration of co-ownership governing relations between co-owners and administrators. This declaration, once published, divides the immovable into fractions owned by one or more persons called “co-owners”. Each co-owner owns a fraction comprising a private portion and a share of the common portions, which are the collective property of all co-owners. The system of divided co-ownership can be applied to all types of buildings, whether residential, commercial or industrial.

Undivided co-ownership is a form of collective ownership in which undivided owners (called undivided co-owners) hold a common right to the same immovable, without any one of them having an exclusive right to the entire property or to a specific part of it. This type of co-ownership is created automatically, without the need for formalities, when two or more people own a building without it being physically divided between them into separate lots.

Condominium structure where co-owners each own a dwelling on the same lot.

Condominium development consisting of several buildings. They are built according to the rate at which units are sold. Lawyers recommend 2 methods for this type of ownership: either successive amendments to the declaration of co-ownership or concurrent declarations of co-ownership. Co-ownership by phase – initial co-ownership Co-ownership established when the initial Declaration of Co-ownership is published as part of the establishment of a phased ownership. The private portions consist of the land on which the buildings are to be constructed. Each lot is subject to a separate declaration of co-ownership. The common elements of a phased condominium include the land and the facilities intended for all the project’s co-owners. This may include roadways, outdoor parking areas, a swimming pool or other common facilities.

A condominium organization where co-owners each own a portion of a collective building. Declaration of co-ownership The Declaration of Co-ownership is a notarized deed registered in the Land Register of Québec that subjects an immovable to the regime of divided co-ownership. This document defines the rules governing the operation and organization of the co-ownership, the destination of the immovable, and the rights and obligations of co-owners and the syndicate of co-owners. It is made up of three sections: the act constituting the co-ownership, the building regulations and the description of fractions. The Declaration of Co-ownership forms part of the Register of Co-ownership and must be made available to any co-owner who requests it. It also specifies each co-owner’s share of the co-ownership charges, calculated according to the relative value of his or her lot in relation to the co-ownership as a whole. When selling a fraction of a co-ownership, a syndicate of co-owners must provide an attestation on the condition of the co-ownership. This attestation, prepared in accordance with government regulations, gathers information on the condition of the co-ownership and must be given to the promisor-buyer within 15 days of the request. This obligation is in effect after the appointment of the new board of directors, following the developer’s loss of control over the syndicate. Request for information from the syndicate of co-owners or the DRCOP Form recommended by the Organisme d’autoréglementation du courtage immobilier du Québec that is given to the syndicate of co-owners by the real estate broker and provides information on the building and its administration. It must be signed by the co-owner-seller and by a representative authorized by the Board of Directors.

All costs incurred in the day-to-day operation of the building. Destination of a multiple-use private portion Use granted to the private portions under the declaration of co-ownership so that they can have several uses. For example, a co-owner may be a self-employed worker who establishes his office in his unit, while the destination of the private portion is residential. Documents relating to the building and the syndicate All digital or printed documents produced and received by the syndicate of co-owners and deposited in the co-ownership register. These documents may be consulted by any co-owner upon request. This includes reports on the building’s maintenance and repair plans, also known as asset management plans, and maintenance logs. Contingency fund studies, budgets, tenders and bids must also be included. Accounting books are not building-related documents, as they are management tools for the Board of Directors. Consequently, they are not accessible to co-owners. In addition, under article 1068.2 of the Civil Code of Québec, introduced by Bill 16, the syndicate of co-ownership must provide the prospective buyer with all the documents and information he needs to make an informed purchase.

Report written by a building professional to estimate the sums required in the short, medium and long term to ensure that the contingency fund has the capacity to pay for major repairs and replacement of the common parts of the condominium building. This involves projecting the amounts that co-owners will have to pay out over a 25 to 30-year period for common expenses. This makes it possible to collect annually the amounts required to be able to carry out major work when the time comes. This document is part of the condominium register and must be made available when requested by a co-owner. It is important to note that the contingency fund study will be mandatory under article 1071 of the Civil Code of Québec, as of the day following the first 3 years of the coming into force of the new measure of Bill 16, which is scheduled for 2023. It will therefore be mandatory in 2026.

Mandatory fund in which are deposited the sums of money intended for the payment of deductibles that the syndicat de copropriété must disburse in connection with the condominium’s insurance coverage. It is also intended to compensate for damage to property in which the syndicate has an insurable interest, in cases where the contingency funds or an insurance indemnity cannot provide for it, as in the case of a coverage ceiling or exclusions. It is up to the Board of Directors, after consultation with all co-owners, to decide on the amounts to be paid into this fund.

Monetary reserve set aside to finance renovation and maintenance work on a condominium.

Majority required to take important decisions, such as amending the condominium by-laws. It corresponds to half the votes of all co-owners. Qualified majority Majority required to make exceptional decisions, such as major works or changing the destination of the building. It corresponds to two-thirds of the votes of all co-owners.

Majority required to take certain decisions at the general meeting. It corresponds to half the votes plus one.

Unit of measurement used to calculate condominium charges and quotas. Each lot is represented by a certain number of thousandths.

Space in the building that belongs to all co-owners and can be used by all.

Fraction of the building specifically for the exclusive use of one or more co-owners.

Procedure enabling decisions to be taken outside the general meeting, in cases where the delay in organizing an ordinary meeting could cause serious harm to the co-ownership. Co-ownership register Set of documents and archives necessary for the proper functioning of the syndicate of co-owners. It includes various elements such as the contact details of each co-owner, the minutes of the meetings of co-owners and the meetings of the board of directors, the written resolutions, the regulations of the building and their modifications, the financial statements, a copy of the declaration of co-ownership, the union contracts, the cadastral plan, the plans and specifications of the building, the certificates of location (if available), the maintenance log, the contingency fund study, as well as as all other documents relating to the building and the union, as provided for by government regulations. The preservation of these documents is the responsibility of the board of directors. Most of the documents contained in the register must be made available to any co-owner who requests them. In addition, a precise description of the private portions, making it possible to identify the improvements made by the co-owners, is included in the register and is often called a “reference unit”.

Legal document which determines the rights and responsibilities of the co-owners as well as the operating conditions of the co-ownership.

Person, or company, mandated for the management of the co-ownership as well as its representation towards third parties.

Legal entity formed by a group of co-owners responsible for the management of the building.

All projects necessary to improve or maintain the condition of the building. Reference unit (description of private areas) or register of basic finishes: Technical sheet which aims to describe the original layout of a private part. This description must be sufficiently detailed to allow the identification of possible improvements made by the co-owners. It is possible to use the same description for several private portions with similar characteristics. The technical sheet must be filed in the co-ownership register and must be made available to any co-owner who requests it. The co-ownership glossary contains the technical terms used in the field of co-ownership. Here are some examples of frequently used terms: – General assembly: Annual meeting of co-owners to make decisions on current affairs and vote on important resolutions. – Trustee: Person or company mandated for the management of the co-ownership as well as its representation towards third parties. – Co-owner: Person owning a share of ownership of real estate in co-ownership. – Co-ownership regulations: Legal document which determines the rights and responsibilities of the co-owners as well as the operating conditions of the co-ownership. – Co-ownership charges: All costs common to the whole are part of the co-ownership. This includes management, maintenance and repair costs. – Contingency fund: Monetary provision dedicated to financing renovation and maintenance work on a co-owned building. – Common areas: Space in the building which belongs to all the co-owners and which can be used by everyone. – Private portions: Fraction of the building specific to the exclusive use of one or more co-owners. – Syndicate of co-owners: Legal entity formed by a group of co-owners responsible for the management of the building. – Horizontal co-ownership: Co-ownership structure where the co-owners each own a home on the same land. – Vertical co-ownership: Co-ownership organization where the co-owners each own part of a collective building. – Maintenance and renovation work: All projects necessary to improve or maintain the condition of the building. -Reference unit (description of private areas) or register of basic finishes: Technical sheet which aims to describe the original layout of a private area. This description must be sufficiently detailed to allow the identification of possible improvements made by the co-owners. It is possible to use the same description for several private portions with similar characteristics. The technical sheet must be filed in the co-ownership register and must be made available to any co-owner who requests it. -Register of the co-ownership All the documents and archives necessary for the accomplishment of the mission of the syndicate of co-owners. These documents include in particular the name and postal address of each co-owner, the minutes of the meetings of co-owners and the meetings of the board of directors, the written resolutions of the board of directors or the meeting of co-owners, the regulations of the building and its modifications, the financial statements, a copy of the declaration of co-ownership, the contracts to which the union is a party, a copy of the cadastral plan, the plans and specifications of the built building, the certificates of location of the building building if they are available, the maintenance log, the contingency fund study, all other documents relating to the building and the union or provided for by government regulation and a description of the private portions sufficiently precise so that the improvements made by the co-owners are identifiable (this description is commonly called “reference unit”). It is up to the board of directors to ensure its conservation. Most of the documents produced in this register must be made available to any co-owner who requests them. – Declaration of co-ownership Notarial deed, published in the Quebec Land Registry, the main purpose of which is to subject a building to the regime of divided co-ownership. The declaration of co-ownership determines, among other things: • · The operating and organizational rules of the co-ownership (common and private areas, distribution of expenses, etc.); • · The destination of the building, the common and private areas; • · The rights and obligations of the co-owners and the co-owners’ association. It is divided into three sections: the constitutive act of co-ownership, the building regulations and the descriptive statement of the fractions. This document is part of the co-ownership register and must be made available to any co-owner who requests it. Share: Share of each co-owner in the co-ownership charges, calculated according to the relative value of their lot in relation to the entire co-ownership. • 1. Thousandth: Unit of measurement used to calculate co-ownership charges and shares. Each lot is represented by a certain number of thousandths. • 2. Simple majority: Majority required to take certain decisions at the general meeting. It corresponds to half the votes plus one. • 3. Absolute majority: Majority required to make important decisions, such as modifying the co-ownership regulations. It corresponds to half of the votes of all the co-owners. • 4. Qualified majority: Majority required to make exceptional decisions, such as deciding on major works or changing the destination of the building. It corresponds to two thirds of the votes of all the co-owners. • 5. Emergency procedure: Procedure allowing decisions to be taken outside the general meeting, in cases where the delay in organizing an ordinary meeting could cause serious harm to the co-ownership. • 6. Certificate on the state of the co-ownership: Document prepared by a union of co-owners and intended to collect various information on the state of the co-ownership. The form and content of the certificate are determined by government regulation. This certificate is one of the legal documents to be provided to a prospective buyer when selling a fraction of co-ownership. GOOD TO KNOW! Article 1068.1 was introduced into the Civil Code of Quebec in December 2019. It requires the seller of a fraction to provide the promising buyer with a certificate from the union regarding the state of the co-ownership. The union has 15 days to provide such a certificate to the co-owner who requests it. However, this obligation only exists from the day of the appointment of the new board of directors, after the loss of control of the promoter over the union. -Notice of assessment: Notice issued by the board of directors or the manager which indicates the amount of contributions to general common charges and, where applicable, to specific common charges, as well as the date on which these charges are due. -Operating Expenses All costs incurred by the syndicate of co-owners to ensure routine maintenance work on the building and the operation of the co-ownership. -Self-insurance fund: Mandatory fund in which the sums of money intended to pay the deductibles that the syndicate of co-owners must pay in relation to the co-ownership insurance coverage are recorded. This fund is also dedicated to repairing damage caused to property in which the union has an insurable interest, when the contingency fund or an insurance indemnity cannot provide for this (e.g., in the case of a ceiling warranty, under-insurance, exclusions, etc.). It is up to the board of directors, after consulting the meeting of co-owners, to determine the amounts to be paid into the self-insurance fund. -Study of the contingency fund Report from a building professional aimed at estimating, in the short, medium and long term, the sums necessary for the contingency fund to be sufficient to cover the cost of work relating to major repairs and replacement of common areas. The study of the contingency fund generally establishes a projection of the sums to be paid by the co-owners over a period of 25 to 30 years as common charges. It allows us to raise the amounts of money required annually to be able to carry out such work when the time comes. This study is part of the co-ownership register and must be made available to any co-owner who requests it. GOOD TO KNOW! The study of the contingency fund will be mandatory (article 1071 of the Civil Code of Quebec) from the day following the first three years of entry into force of the Quebec government’s regulations in this area. If it is adopted in 2023 as planned, this study will therefore be required from 2026. -Co-ownership in phases Co-ownership which generally includes several buildings. These are usually constructed taking into account the rate of unit sales. Two methods are recognized by jurists for achieving this type of co-ownership, either the method of successive modifications to the declaration of co-ownership, or the method of concurrent declarations of co-ownership. -Co-ownership in phases – Initial co-ownership Co-ownership established following the publication of an initial declaration of co-ownership as part of the development of co-ownership in phases. The private portions generally consist of land intended to accommodate a building. Each of the lands is subsequently subject to a concomitant declaration of co-ownership. As for the common areas, they include the land and equipment intended for all of the co-owners of the project, for example traffic routes, outdoor parking or the swimming pool. -Request for information from the co-owners’ union (DRCOP) Recommended form from the Self-Regulation of Real Estate Brokerage of Quebec that the real estate broker gives to the syndicate of co-owners, in order to obtain certain information on the building and its administration. This form must be signed by the co-owner-seller and by a duly authorized representative of the board of directors. -Destination of a private part for multiple use Use which is allocated to the private portions, under the declaration of co-ownership (act constituting co-ownership), so that they can be assigned to more than one use. For example, a co-owner can practice a liberal profession while the destination of the private part is residential. -Documents relating to the building and the union All printed paper or digital documents that are produced or received by the co-owners’ association. These are filed in the co-ownership register and can be consulted by all co-owners who request them. These include, in particular, reports concerning the building’s maintenance and repair plans (e.g., the asset management plan), as well as preventive maintenance plans (e.g., , the maintenance logbook). The same applies to cost evaluations of repair work (e.g., contingency fund study), budgets prepared so that they are carried out, tender documents and bids received. . GOOD TO KNOW! The co-ownership accounting books are management tools made available to the board of directors. These are not “documents relating to the building. ”, so that they cannot, in principle, be made accessible to co-owners.