Quebec Condo Special Assessment: A Practical Guide

A special assessment is a one-time call for funds required from co-owners to cover an extraordinary expense that exceeds the regular budget or the amounts available in the contingency fund. In divided co-ownership in Quebec, it often raises questions: when should it be imposed, how should it be approved at the annual general meeting, what payment terms should be provided, and what remedies are available in the event of non-payment?

This practical guide is intended for the board of directors and co-owners. It explains the approval process, calculation, collection and communication best practices, drawing on the declaration of co-ownership, the Civil Code of Quebec (C.c.Q.), as well as institutional references.

When should a special assessment be used?

A special assessment is not a day-to-day management tool. It is used to finance an exceptional, unforeseen expense that is not covered by the annual budget or the contingency fund. Common examples include:

• Urgent work on common portions (a major leak, concrete slab or collapsed roof).
• Planned work whose cost exceeds the available funds (elevator replacement or balcony membranes), when the contingency fund study/maintenance logbook revealed a need earlier than expected or underestimated.
• A high insurance deductible or uninsured portion of a loss affecting common portions.
• Regulatory compliance work (safety or RBQ requirements), or a court decision requiring corrective work.
• An unexpected budget shortfall (a significant increase in energy, contract or insurance costs) that cannot otherwise be absorbed without compromising essential common expenses.

Before proposing a special assessment, the board of directors should check:

• Whether the contingency fund can be used without affecting medium-term projects (see the Civil Code of Quebec provisions relating to the contingency fund).
• Whether the work can be phased.
• Whether a budget adjustment or temporary financing complies with the declaration of co-ownership and the co-owners’ ability to pay.

Reminder: each co-owner’s contribution to common expenses, whether regular or special, is based on their undivided share, unless the declaration of co-ownership provides otherwise (see section 1064 of the Civil Code of Quebec, LégisQuébec).

Approval: annual general meeting, quorum and voting

The special assessment must be approved by the meeting of co-owners, ideally at the annual general meeting, or at a special meeting called for that purpose. The notice of meeting must clearly include the item on the agenda and include documents that allow for an informed vote: description of the expense, estimates, total cost, proposed allocation and payment schedule.

Unless the declaration of co-ownership contains stricter provisions, a special assessment related to the maintenance, preservation or safety of common portions is generally decided by a majority of the votes of the co-owners present or represented. The quorum and vote-counting rules must comply with the declaration of co-ownership and the Civil Code of Quebec. The meeting secretary must then record the resolution in the minutes and post or send it in accordance with the practices set out in the by-laws of the immovable.

Documents to send before the vote

• Summary of the need (urgency, risks, compliance and work schedule).
• Comparable estimates or the mandate of a professional (architect, engineer or technologist), depending on the nature of the work.
• Estimated total cost and applicable taxes, professional fees and contingencies.
• Proposed allocation based on the undivided shares and payment schedule (call for funds).
• Impact on the contingency fund and the contingency fund study/maintenance logbook.

Practical steps at the annual general meeting

1. Presentation of the need, options and costs by the board of directors.
2. Question-and-answer and discussion period; adjustment of the schedule if necessary.
3. Reading of the resolution (total amount, calculation method, payment terms, interest in the event of late payment and due date).
4. Vote and recording in the minutes.
5. Sending call-for-funds notices to co-owners with the approved terms.

For more information on best governance practices at meetings, see the resources provided by the RGCQ.

Calculating undivided shares and setting payment terms

Basic principle: the contribution is proportional to each fraction’s undivided share, unless the declaration of co-ownership provides a different allocation method for certain expenses (for example, equipment serving only one tower or sector). The board of directors must consult it before performing any calculation.

• Basic calculation: total special assessment amount ÷ total of the undivided shares = amount per undivided-share point. Then multiply by each fraction’s undivided share.
• Special cases: certain expenses may be allocated according to the use or benefit provided for in the declaration of co-ownership (for example, underground parking or a specific elevator).

Common payment terms include:

• One-time payment on a specified date (useful in an emergency).
• Payment in instalments (monthly or quarterly) over a specified period to reduce financial pressure.
• A combination of the two (an initial deposit followed by instalments).

The by-laws of the immovable may provide for interest in the event of late payment. The resolution adopted should specify: due dates, accepted payment method, interest and administrative fees provided for in the by-laws, and the consequences of non-payment. A clear and consistent call-for-funds notice is recommended for each co-owner.

Planning tip: align the special assessment with the contingency fund study/maintenance logbook to avoid imposing them too frequently. Proper project planning can sometimes allow work to be grouped together and better prices to be obtained, provided contractor compliance requirements are met. Consult the RBQ regarding licences and areas of work.

Accounting management and monitoring of the special assessment

Financially, keep the special assessment separate from regular common expenses and the contingency fund to ensure traceability:

• Create project codes and separate general-ledger accounts.
• Deposit the funds into the syndicate’s bank account, ensuring that they are allocated in a way that allows project receipts and disbursements to be reconciled.
• Issue consistent notices and receipts, and retain proof of delivery.
• Provide periodic updates at the meeting or through board of directors communications: collection status, work progress and required adjustments.

Annual financial statements should transparently present the special assessments received and the corresponding disbursements, as well as any outstanding balance. A clear statement facilitates the resale of a unit (buyers and brokers often request the history of special assessments).

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Late payments, remedies and communication

Despite the best planning, some co-owners may delay or omit their payments. The board of directors must act rigorously and fairly, in accordance with the declaration of co-ownership and the Civil Code of Quebec. A few gradual steps include:

• A friendly reminder after the due date (by email or standardized letter).
• A formal notice of late payment specifying the interest provided for in the by-laws and a new deadline.
• A demand letter, ideally through legal counsel, if the arrears continue.

The syndicate has a powerful remedy: a legal hypothec for co-owners’ contributions toward common expenses, as provided for in the Civil Code of Quebec (see section 2729 of the Civil Code of Quebec, LégisQuébec). Depending on the circumstances, judicial collection proceedings may follow. However, avoid reaching that point by favouring reasonable payment arrangements whenever possible, without compromising fairness toward all co-owners.

For the legal basis of contributions to common expenses, see section 1064 of the Civil Code of Quebec (LégisQuébec). For governance advice, also consult the RGCQ.

If your syndicate would like to delegate billing, collection monitoring and follow-up, our processes and communication templates help reduce errors and standardize timelines. Explore our administrative services or visit the blog for more practical guides.

FAQ – Special assessments for Quebec condos

Q1. What is the difference between increasing condo fees and imposing a special assessment?

– Condo fees fund recurring common expenses (the annual budget). A special assessment covers an exceptional or urgent expense that exceeds the budget and/or the contingency fund.

Q2. Can I refuse to pay if I disagree with the project?

– Once the resolution has been duly adopted in accordance with the declaration of co-ownership and the Civil Code of Quebec, the special assessment becomes payable by all co-owners concerned. Judicial recourse to challenge the decision is possible in specific cases, but it does not necessarily suspend the obligation to pay.

Q3. Can the syndicate charge interest or fees for late payment?

– Yes, if the by-laws of the immovable or the resolution adopted clearly provide for them, and in compliance with applicable laws. The terms must be communicated in the call-for-funds notice.

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 professional or accountant. Refer to Revenu Quebec and the CRA for the exact requirements.

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