Recovering Costs from a Co-Owner: Quebec Syndicate Guide

Recovering costs from a co-owner at fault is sometimes unavoidable for a syndicate. In divided co-ownership, the line between ordinary common expenses and expenses caused by an individual’s fault must be clear. Without a proper framework and evidence, the risk of a dispute increases, as does the impact on condo fees and the contingency fund.

In this article, we summarize the Quebec legal framework, the typical situations in which costs may be recovered, and a simple process for the board of directors. You will find references to the Civil Code of Quebec (C.c.Q.), the declaration of co-ownership (DCV) and the by-laws of the immovable, as well as practical tools for documenting and recovering costs.

The Legal Framework in Quebec: Principles and Sources

• The C.c.Q. requires co-owners to contribute to common expenses according to the relative value of their fraction. However, when expenses result from the fault, negligence or abusive use by a co-owner (or their occupant), the syndicate may claim the corresponding costs from that co-owner (a frequently cited reference is section 1064 C.c.Q.).
• The declaration of co-ownership and the by-laws of the immovable may specify penalties or administrative fees in the event of a violation (e.g., failure to comply with noise or occupancy rules). These penalties must remain reasonable and be provided for in advance; otherwise, they may be challenged.
• In the event of non-payment, the contribution owed to the syndicate may be secured by the legal hypothec provided for by the C.c.Q. for common expenses. Recovered costs related to a fault, once added to the co-owner’s account, may form part of the amounts payable to the syndicate, subject to proof and compliance (see the C.c.Q. provisions concerning the syndicate’s legal hypothec).

Useful references:

• LégisQuébec – Civil Code of Quebec, provisions concerning divided co-ownership (sections 1038 et seq.)
• LégisQuébec – sections concerning the allocation of common expenses and co-owner liability (including section 1064 C.c.Q.)
• LégisQuébec – legal hypothec in divided co-ownership (security for contributions owed to the syndicate)

When and What Can Be Recovered? Practical Examples

The most common cases involving cost recovery concern damage to common portions or interventions made necessary by a failure to comply with the rules.

• Water damage caused by poorly maintained equipment in a private portion (e.g., an outdated water heater): damage to common portions, the syndicate’s insurance deductible, emergency expenses and decontamination costs.
• Intentional damage to or abusive use of common portions (doors, elevators, access/intercom systems), supported by witnesses, recordings or security reports.
• Violation of the by-laws of the immovable (e.g., unauthorized work, excessive noise, prohibited Airbnb-style rentals): intervention and notice costs and, if provided for in the declaration of co-ownership, reasonable penalties.
• Failure to cooperate when access to a private portion is required for preventive maintenance or urgent work affecting a riser: additional contractor charges, repeated trips and, where authorized in accordance with the declaration of co-ownership, forced entry.

Important: Regular maintenance normally covered by common expenses, or planned expenses included in the maintenance logbook/EUC or the contingency fund, should not be recovered on a case-by-case basis. Cost recovery is intended for additional costs caused by a fault, negligence or prohibited use.

Recommended Process for the Board of Directors: From Evidence to Collection

A structured process reduces challenges and demonstrates the syndicate’s good faith.

1. Record and document the incident
   • Record the incident in a dated report (photos/videos, witnesses and sensor readings, if applicable).
   • Identify the common or private portions affected. Note the chronology and communications.
2. Mitigate the damage and choose the right contractors
   • Act without delay to limit the impact (e.g., drying). Prioritize Regie du batiment du Quebec (RBQ)-licensed contractors and ensure that costs can be traced. See the RBQ requirements: https://www.rbq.gouv.qc.ca/
3. Review the declaration of co-ownership, by-laws and insurance
   • Confirm the provisions concerning access, penalties and liability in the declaration of co-ownership and by-laws.
   • Review the insurance policies (for the syndicate and co-owner) to avoid double recovery and apply deductibles correctly.
4. Formal board decision and resolution
   • Adopt a reasoned board of directors resolution authorizing the cost recovery (amount, supporting documents and legal basis). Archive it with the board of directors minutes.
   • Where appropriate, inform the annual general meeting through an information item or in the annual report.
5. Demand letter and billing
   • Send a formal demand to the co-owner at fault, including: a summary of the facts, the legal basis (C.c.Q./declaration of co-ownership), a detailed list of costs, a payment deadline and contact details for discussing the matter.
   • Issue the invoice and post it to the co-owner’s account. Apply interest or administrative fees only if they are expressly provided for and reasonable.
6. Follow-up, collection and legal hypothec
   • If the amount remains unpaid, send a final notice and, if necessary, bring a claim in Small Claims Division (depending on the amount) or register a notice of the syndicate’s legal hypothec while complying with the C.c.Q. conditions and procedural deadlines.
   • Keep a complete file: it will be useful in mediation, in court or during a sale (syndicate certificate and statement of account).

For an overview of the services that support this process (notice management, account follow-up and document retention), see our administrative management and financial management services.

Writing a Strong Formal Demand

• Facts: clearly describe the event, damage and causal connection.
• Legal basis: refer to the relevant sections of the C.c.Q. and the provisions of the declaration of co-ownership/by-laws.
• Evidence: attach reports, photos, estimates/invoices and correspondence.
• Demand: specify the exact amount, payment deadline and contact details.
• Openness: offer a meeting or call to avoid escalation.

Templates are available from organizations specializing in divided co-ownership, such as the RGCQ, which shares best practices for syndicates and boards of directors.

Limits, Caution and Pitfalls to Avoid

• Abusive penalties: amounts must remain proportionate. A vague or punitive clause with no connection to an actual cost risks being invalidated.
• Double recovery: if the syndicate’s insurer indemnifies a loss, avoid claiming the same amount from the co-owner. The deductible and uncovered costs may nevertheless be at issue, depending on the established fault.
• Legal and administrative fees: these may be claimed when necessary, reasonable and provided for (in the declaration of co-ownership/by-laws or under civil liability arising from the fault). Document the time spent and steps taken.
• Access to private portions: the declaration of co-ownership sets out the access procedures. Comply with the notice and deadline requirements, except in an emergency. Document any refusal.
• Common portions versus private portions: properly allocate repairs according to the EUC and maintenance logbook. An incorrect allocation is easy to challenge.

If you are uncertain, consult the official sources:

• LégisQuébec – divided co-ownership rules (C.c.Q., title on co-ownership)
• RGCQ – resources and training for syndicates/boards of directors

Calculations, Taxes and Accounting: Key Points

• Recoverable items: parts, labour, emergency expenses, contractor travel costs, the syndicate’s insurance deductible and reasonable administrative fees provided for.
• Taxes: depending on your tax status, certain amounts recovered may be taxable. Confirm tax registration and billing (GST/QST) with Revenu Québec, under the Sales Taxes section.
• Accounting entries: link each expense to the incident, retain estimates and invoices, and then link the recovered amount to the co-owner’s account. Traceability makes audits and financial statement preparation easier.

To structure your documentation and follow-ups, see our About Us page and the blog index for additional guides.

Frequently Asked Questions (FAQ)

Q1. Can the syndicate recover legal fees?
Yes, if those fees result from the co-owner’s fault or failure to comply, are necessary and reasonable, and are permitted by the declaration of co-ownership/by-laws or civil liability rules. Keep a detailed record of hours and steps taken.

Q2. What if the person at fault is a tenant?
The co-owner-landlord remains liable to the syndicate. The by-laws of the immovable also apply to occupants. The syndicate claims the amount from the co-owner, who can then seek recovery from the tenant if necessary.

Q3. Can privileges be suspended in the event of non-payment?
A co-owner’s rights may be restricted only in accordance with the C.c.Q. and the declaration of co-ownership. The usual approach remains a formal demand, collection proceedings and, where necessary, a legal hypothec. Obtain legal advice before taking any restrictive measure.

• RBQ – choosing a licensed and compliant contractor
• OACIQ – useful information when selling (certificates and declarations)

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

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