Quebec Condo Management Agreement: Key Clauses

Entrusting the administration of a divided co-ownership to a condominium manager requires a carefully drafted management agreement. For the board of directors and co-owners, a clear document avoids grey areas, defines delegated powers and makes any eventual termination easier. Here is what every Quebec syndicate should require and review before signing, as well as the steps to follow to end the mandate if necessary.

Also read: our administrative management service and our packages.

1) Legal framework: mandate, board powers and essential obligations

In Quebec, a management agreement is analysed as a mandate entrusted by the syndicate to the condominium manager (see sections 2130 et seq. of the Civil Code of Quebec). The syndicate, a legal person arising from the divided co-ownership, acts through its board of directors (see sections 1039 et seq. of the Civil Code of Quebec). In practice, the board delegates certain tasks to the condominium manager without transferring its responsibility for oversight and accountability.

• Nature of the mandate: the condominium manager performs the agreed-upon tasks and acts in the syndicate’s interests, with prudence and loyalty.
• Non-delegated powers: governance decisions (adopting the budget, calling the annual general meeting, approving a by-law of the immovable) fall to the board of directors and, depending on the circumstances, the meeting.
• Accountability: the condominium manager provides reports, supporting documents and required statements at the specified frequency.

Useful references:

• Civil Code of Quebec – co-ownership and administration of the syndicate (see sections 1039 et seq., 1085 et seq.) — https://www.legisquebec.gouv.qc.ca/fr/document/ccq-1991
• General rules governing mandates (see sections 2130 et seq. of the Civil Code of Quebec) — https://www.legisquebec.gouv.qc.ca/fr/document/ccq-1991

2) Essential clauses in a co-ownership management agreement

A good agreement describes precisely “what, how and how far.” Here are the sections to include and the points to monitor.

• Parties and definition of the syndicate: legal name of the syndicate, civic address and enterprise number, if applicable. Reference to the declaration of co-ownership and its by-laws.
• Term, renewal and notice: fixed term (e.g., 12 months), whether renewal is automatic, clear notice period (30, 60 or 90 days), and form of notice (written, method of delivery). Avoid excessively long tacit renewals.
• Scope of the mandate: detailed list of administrative services (annual general meeting, minutes, register follow-up, communications management), financial services (collection of common expenses, accounts payable, budget, financial statements), and operational services (preventive maintenance, claims, maintenance logbook/EUC), with limits and exclusions.
• Powers and authorizations: spending thresholds requiring prior board approval, bidding procedures, banking signatures and dual control.
• Fees, remuneration and disbursements: schedule of included and excluded services, billable disbursements (registered mail, copies, travel) and terms (hourly rate or flat fee, monthly billing). Require board approval before any extra charge.
• Indicators and reports: frequency of management reports, co-owner account statements, bank reconciliations, follow-up on overdue assessments and notices of default.
• Compliance and confidentiality: obligations regarding the protection of personal information (Act respecting the protection of personal information in the private sector, known as Bill 25), access logs, confidentiality agreements, and secure retention and deletion of data. Reference: https://www.legisquebec.gouv.qc.ca/fr/document/lc/P-39.1
• Insurance and liability: proof of the condominium manager’s professional liability insurance, limits, exclusions and reasonable indemnification without relieving the manager of liability in cases of gross fault.
• Subcontracting and impartiality: a regulated right to subcontract, disclosure of business relationships, and an obligation to obtain the board’s consent for significant work on the common portions. Refer to the best practices of the RGCQ.
• Data access and reversibility: ownership of the syndicate’s data, deliverable formats, ongoing access to the register, and complete handover at the end of the agreement (accounting records, contracts, warranties, plans, maintenance histories, claims, correspondence).
• Termination: grounds (fault, repeated breach, loss of confidence), notice, document handover and an orderly transition. Any penalties provided for must remain proportionate.

Tip: attach a “service schedule” listing recurring tasks (monthly, quarterly and annual) and standard timelines in an appendix.

3) Request-for-proposals process and board approval

A disciplined process reduces risks and promotes transparency with co-owners.

• Specifications: define needs, volumes (number of units, common portions), service levels, communication channels and KPIs.
• Requests for proposals: obtain 2-3 comparable proposals. Require references, proof of insurance and sample reports. The RGCQ offers useful resources.
• Evaluation: compare the actual inclusion of services (annual general meeting, minutes, collection of common expenses, follow-ups), internal control mechanisms, and experience with claims and contingency funds/maintenance logbooks.
• Decision: a board resolution, recorded in the minutes, specifying the authorized signatory and effective date. In some syndicates, the next meeting is informed for transparency, even if formal approval by the annual general meeting is not always required by law (check your declaration of co-ownership).

Civil Code of Quebec reference – operation of the syndicate and board decisions: https://www.legisquebec.gouv.qc.ca/fr/document/ccq-1991.

4) Termination: grounds, procedure and document handover

Even with a good agreement, termination may become necessary. Act in an orderly manner to protect administrative and financial continuity.

Common grounds

• Repeated breaches of essential obligations (accountability, bank deposits, deadlines for calling the annual general meeting, claims follow-up).
• Lack of diligence, undisclosed conflicts of interest or a major breach of confidentiality.
• Loss of the board’s confidence following documented warnings.

Recommended procedure

1. Review the agreement: termination clause, notice period, transition terms and any applicable penalties.
2. Adopt a board resolution: reason, end date and signatory for the notice; have it recorded in the minutes.
3. Send written notice: comply with the notice period and keep proof of delivery.
4. Organize the transition: inventory access credentials and information assets; prepare a handover plan.
5. Verify balances: bank reconciliations, co-owner account statements and outstanding invoices.
6. Recover documents: accounting records, supplier contracts, warranties, claims, correspondence and backups.

Exit deliverables to require

• A complete, usable copy of the register (financial statements, list of co-owners, by-law of the immovable, declaration of co-ownership, maintenance logbooks/EUC, plans).
• Digital backups and passwords delivered under seal, with an acknowledgement of receipt.
• Keys, access cards, parking remote controls and any other device in the condominium manager’s possession.

Good to know: the general rules governing mandates provide for consequences in cases of fault or non-performance (see sections 2149 et seq. of the Civil Code of Quebec). Refer to the Civil Code: https://www.legisquebec.gouv.qc.ca/fr/document/ccq-1991.

5) Best practices for an agreement that protects your syndicate

• Clearly distinguish included services from extras: this avoids surprises involving common expenses or assessments.
• Set purchasing thresholds: require two quotes above a specified amount; board approval is mandatory.
• Require timelines: periodic reports, response times (emails, emergencies, claims) and an annual general meeting/minutes calendar.
• Strengthen cybersecurity: include provisions for backups, encryption, access management, incidents and responsibilities under Bill 25.
• Ensure continuity: include detailed reversibility provisions, use open data formats and conduct a partial handover test 30 days before the end.
• Update after each annual general meeting: incorporate new resolutions (e.g., insurance policy, contingency fund, by-law of the immovable) and adjust the mandate accordingly.

For examples of items covered by a management service, see our Services and Blog pages on multiRent.

FAQ — Co-ownership management agreement

Q1. Can the board delegate “everything” to the condominium manager?

No. The board retains its decision-making powers and its duty of oversight. The condominium manager performs the defined mandate and must provide an account (see the rules governing mandates in the Civil Code of Quebec).

Q2. Does the agreement need to be approved at the annual general meeting?

Often, signing authority lies with the board. However, check your declaration of co-ownership and your practices. Informing co-owners at the next annual general meeting improves transparency.

Q3. Can the agreement be terminated before its expiry?

Yes, subject to the agreement’s clauses and the ordinary law governing mandates. Respect the required notice period, document the breaches and organize the handover of documents.

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

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