Unpaid Condo Fees and Voting Rights in Quebec

Information current as of 2026-06-21.

Payment default in a divided co-ownership quickly creates tension: it affects cash flow, puts pressure on the board of directors (board) and raises the delicate question of voting rights at the annual general meeting (AGA). Between the declaration of co-ownership, the Civil Code of Quebec (C.c.Q.) and day-to-day management, rigour and fairness must go hand in hand. This article clarifies the rules applicable in Quebec, the possible sanctions and best practices for your syndicate.

What you will find here: when a co-owner loses their voting rights, what collection measures are permitted, how to hold a calm AGA and how to prevent late payments. Official references and practical tools will help you act proportionately and keep proper records.

What constitutes non-payment of common expenses?

In a divided co-ownership, each co-owner must contribute to the common expenses (condo fees and assessments) according to the co-ownership share set out in the declaration of co-ownership. This obligation arises from the C.c.Q. (see section 1064 C.c.Q.; refer to the Civil Code of Quebec). The expenses fund day-to-day costs (insurance, maintenance and energy), the contingency fund and, increasingly, the work provided for in the maintenance logbook / EUC.

Payment default occurs when an amount due is not paid by the deadline set out in the budget or call for funds. Many declarations of co-ownership provide for late-payment interest and, sometimes, administrative fees. These penalties must be authorized by the declaration of co-ownership or the by-laws of the immovable and remain reasonable.

In practice, the payment default is tracked and confirmed through the syndicate’s accounting records (account statement and aged receivables), then communicated to the co-owner according to a collection schedule (friendly reminder, notice and demand letter).

Loss of voting rights: threshold, duration and exceptions

In Quebec, a co-owner in payment default may lose their voting rights at a meeting. The C.c.Q. provides that voting rights are linked to co-owner status and may be limited in the case of arrears of common expenses (see the “Divided co-ownership” section of the Civil Code of Quebec). Most declarations of co-ownership repeat this rule and specify that, after arrears have remained outstanding for a certain period, voting rights are suspended until full payment.

In practical terms:

• Voting rights are suspended until all amounts due in connection with the common expenses (principal, interest and permitted fees) have been paid.
• The suspension does not prevent the co-owner from attending the AGA, asking questions or receiving information; it applies only to the exercise of voting rights.
• When a payment fully regularizes the situation, voting rights are restored for subsequent meetings (or for the same AGA if payment is confirmed before voting begins and in accordance with the procedures provided for in the declaration of co-ownership / meeting rules).

What about proxies?

A proxy must not be used to circumvent a voting suspension. A co-owner who is not eligible to vote cannot validly appoint a third party to vote on their behalf if their own ability to vote is suspended under the law or the declaration of co-ownership. The proxyholder may attend, but may not vote for a co-owner in payment default. Always check your declaration of co-ownership and meeting rules.

Participation in the AGA: residual rights

A co-owner in payment default may:

• attend the meeting, listen to the discussions and ask questions;
• review documents provided to everyone (notice of meeting, budget and financial statements);
• make comments from the floor.

However, they may not propose resolutions that require the exercise of voting rights, nor may they be counted in calculating the votes cast while their rights are suspended. In case of doubt, follow the rules in your declaration of co-ownership and the C.c.Q. (see the “Meetings of co-owners” section of the C.c.Q.).

Progressive collection measures and financial sanctions

The board of directors must protect the syndicate’s cash flow without going too far or being too lenient. A progressive approach, documented in the file, is recommended.

1. Friendly reminder (7-15 days after the due date)

   • Courteous reminder by email or letter.
   • Offer simple payment methods (bank transfer or pre-authorized debit).

2. Formal notice

   • Detailed amounts owing (principal, interest provided for in the declaration of co-ownership and authorized fees).
   • Clear deadline and contact information for arranging an agreement.

3. Payment agreement

   • Short and realistic schedule; written confirmation.
   • Provide that failure to meet a payment deadline makes the balance immediately due.

4. Demand letter

   • Formal letter setting a final deadline and announcing the remedies available if payment is not made.
   • Keep proof of sending and proof of receipt.

5. Legal hypothec of the syndicate and court remedies

   • The syndicate has a legal hypothec to secure unpaid common expenses (see the sections on legal hypothecs in the C.c.Q.).
   • Depending on the amount, an action in the Small Claims Division or the Court of Quebec may be considered. Consult a legal professional before taking action.

6. Sale of the fraction and syndicate certificate

   • In a sale, the notary requests a certificate from the syndicate; arrears generally must be paid out of the sale proceeds. See the OACIQ guides.

Good to know: RGCQ recommends a clear collection policy known to co-owners, including the scale of reminders and authorized penalties (RGCQ).

Summary of measures and their effects

Managing the meeting when there are arrears

A well-run AGA relies on rules announced in advance, careful verification of voting rights and equal treatment for everyone.

• Before the AGA: prepare a confidential list of co-owners eligible to vote, based on the accounting records closed as of a specific date. Notify people in payment default individually and in advance.
• At check-in: verify identity, proxies and voting status. Avoid publicly disclosing amounts owing; simply indicate “not eligible to vote” where appropriate.
• During the meeting: announce the number of eligible votes at the beginning and again before important votes. If a co-owner regularizes their situation on the spot and the declaration of co-ownership allows it, update their voting status before the next resolution.
• Minutes: indicate the rules applied, any objections raised and the decisions of the chair of the meeting. The minutes are your best evidence in the event of a challenge.

To structure this process, clear meeting rules aligned with the declaration of co-ownership and the C.c.Q. are essential (refer to the C.c.Q. for provisions on meetings and voting).

Preventing late payments: financial management and communication

Prevention costs less than collection. Here are some practical tools for your syndicate and condominium manager.

• Realistic and predictable budget: adjust common expenses according to actual costs and the maintenance plan. Adequately fund the contingency fund.
• Simple payment methods: offer pre-authorized debit, bank transfers and online payments. Send automatic reminders of due dates.
• Transparent communication: explain where contributions go (insurance, contracts, EUC / maintenance logbook), and provide clear financial benchmarks with the financial statements.
• Written collection policy: collection stages, interest and authorized fees (according to the declaration of co-ownership), and criteria for payment agreements. Draw on the recommendations of RGCQ.
• Professional support: an equipped manager can automate billing, tracking and reminders. See our financial management and administrative management services.

For more information, also browse our blog and our About us page to understand our “Condominium management in Montreal” approach.

FAQ — Voting rights and payment default

• Can a co-owner in payment default vote by proxy?
  No. A voting suspension cannot be circumvented by proxy; the proxyholder has no greater rights than the principal.

• Can a person be excluded from the meeting because they owe money?
  No. The suspension applies to voting rights, not access or the right to information. The person may attend and speak in accordance with the meeting rules.

• Are interest and administrative fees permitted?
  Yes, if they are expressly provided for in the declaration of co-ownership or the by-laws and remain reasonable. Always document how they are applied.

• What happens upon a sale if arrears exist?
  The notary will request a certificate from the syndicate; the amounts owing are generally deducted from the sale proceeds. See the OACIQ.

• Do the tax consequences vary if I rent out my condo?
  Possibly. The treatment of interest and fees may differ depending on your situation (occupant or landlord). Refer to Revenu Quebec 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 rules.

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