Collecting Rent in Quebec Co-ownership Under Article 1069 C.C.Q.

When a co-owner stops paying common expenses, the syndicate may, in certain cases, collect the rent directly from the tenant. This remedy, provided for in article 1069 of the Civil Code of Quebec (C.C.Q.), is particularly useful for protecting cash flow and preventing arrears from accumulating. In a divided co-ownership, this measure is added to the other collection remedies already available.

This practical guide explains, in plain Quebec English, how to use the mechanism under article 1069 C.C.Q. properly and effectively: conditions, notice steps, communication with the tenant and mistakes to avoid.

Updated as of 2026-08-09

1) The legal principle (article 1069 C.C.Q.) in brief

• The syndicate may ask the tenant of a fraction to pay their rent to the syndicate instead of to the co-owner in default, up to the amount of common expenses owing.
• The objective is to recover unpaid contributions (common expenses/condo fees), as well as interest and reasonable costs if authorized by your declaration of co-ownership and/or by-laws of the immovable.
• A notice must be sent to both the debtor co-owner and the tenant before any rent is collected (a specific requirement under article 1069 C.C.Q.).

Useful references:

• Civil Code of Quebec — article 1069 (collection of rent by the syndicate) — LégisQuébec: consult the Civil Code
• Civil Code of Quebec — article 1064 (obligation to contribute to expenses) — LégisQuébec: view the Civil Code
• RGCQ — Co-ownership resources: rgcq.org/ressources

2) When should you use this remedy?

• Actual, documented arrears: up-to-date statements of account, interest provided for in the by-laws, relevant annual general meeting decisions (e.g., budget, calls for contributions, contingency fund), and available minutes.
• There is a lease in effect for the fraction concerned (a dwelling rented out by the co-owner). The syndicate does not intervene in the contractual relationship, but redirects the rent payment as permitted by law.
• The amounts collected must not exceed the sums owing. Once the debt has been paid, collection stops and the rent becomes payable to the co-owner again.

Good to know: this remedy does not prevent other steps (a demand letter, a court claim if necessary, or a legal hypothec in favour of the syndicate, where applicable). It is often faster than waiting for a full collection proceeding.

To structure your financial and administrative follow-up, see our services: Financial management and Administrative management.

3) Step-by-step procedure for collecting the rent

Here is a sequence used successfully by the syndicates we support in the greater Montreal area.

Step 1 — Verify and record the debt

• Prepare a detailed statement of account: overdue contributions, authorized interest and other costs permitted by your declaration of co-ownership and by-laws of the immovable.
• Attach the supporting documents: statements, annual general meeting minutes, an excerpt from the budget or board of directors resolution, and calls for funds (including the contingency fund and, where applicable, special assessments).

Step 2 — Send a demand letter to the co-owner

• Send a written demand letter with a reasonable deadline for payment. Clearly state the amount owing, the payment schedule and the references (declaration of co-ownership, by-laws and article 1064 C.C.Q.).
• State that, if payment is not made, the syndicate may exercise the remedy under article 1069 C.C.Q. by notifying the tenant.

Step 3 — Formal notice to the tenant and co-owner (article 1069 C.C.Q.)

• Prepare a clear notice to the tenant, with a copy to the co-owner, requiring the monthly rent to be paid to the syndicate until the unpaid common expenses have been paid in full.
• State: the identification of the fraction, the current amount owing, the rent concerned, the effective date (the coming month) and the payment instructions for the syndicate.
• Use a traceable method of delivery (registered mail, bailiff or any method provided for in the by-laws of the immovable) and keep proof of delivery.

Recommended minimum contents of the notice

• Legal basis: reference to “article 1069 C.C.Q.” (without quoting the full text of the legislation).
• Amount and breakdown: principal, interest and other permitted costs (if applicable under the declaration of co-ownership/by-laws).
• Payment instructions: payable to the syndicate, contact details and period covered (e.g., “starting on the first of next month”).
• Contact: the condominium manager or secretary of the board of directors.

Step 4 — Receipt and application of rent payments

• Collect the rent received and apply it to the items in the order provided for by your internal rules (often: principal, interest and costs).
• Issue receipts, keep the books and periodically inform the co-owner and tenant of the remaining balance.

Step 5 — Closing the file and returning to normal

• Once the debt has been paid, confirm in writing that collection has ended and that the rent will once again be payable to the co-owner.
• Update the file, archive all documents and retain proof of the notices.

For notice templates and structured follow-up, see our management packages.

4) Relations with the tenant and co-owner

• Professionalism and respect: the tenant is not in default; they simply have to redirect their payment. Calmly explain the legal basis (article 1069 C.C.Q.) and answer their questions.
• Confidentiality (Bill 25): limit the information shared to what is necessary (amount owing, payment instructions and contact details). Avoid unnecessary sensitive details.
• Compliance with the lease: the notice does not change the rent owing or any other lease obligations. The tenant continues to occupy the dwelling under the usual terms.
• Communication with the co-owner: keep them informed of the amounts applied and the balance. Encourage a payment plan if upcoming contributions are added.

For smooth management of notices, collections and follow-up, also see our operations service.

5) Common mistakes to avoid

• Failing to notify the tenant or co-owner before collecting the rent.
• Claiming more than the amounts actually owing or costs not provided for in the declaration of co-ownership/by-laws.
• Cutting off an essential service to the rented dwelling as pressure (non-compliant and counterproductive).
• Improvising the accounting: no statements of account, minutes or proof of delivery.
• Forgetting to state when collection ends once the debt has been paid.

6) Practical scenarios and syndicate actions

FAQ

• Can the syndicate claim rent that was already paid in previous months?
  Generally, the redirection applies going forward from the notice sent under article 1069 C.C.Q. For months already paid to the co-owner, the syndicate proceeds through traditional collection against the co-owner.
• Could the tenant face a penalty for following the syndicate’s notice?
  No. Article 1069 C.C.Q. expressly allows the rent to be redirected after notice. The tenant remains protected if they pay in accordance with the official instructions. Refer to the Civil Code of Quebec.
• Are there tax implications for the syndicate or co-owner?
  In most cases, the syndicate acts as a collector of common expenses. Tax obligations (e.g., slips and returns) remain specific to each situation. Consult Revenu Quebec to confirm your obligations and consult a professional.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

This article provides general information and does not replace advice from a tax specialist or accountant. Refer to Revenu Quebec and the CRA for the exact requirements.

Do you manage a co-ownership in Quebec? Discover our packages or contact us to assess your needs.