Changing Your Condominium Manager: How It Works

Are you considering changing managers for your divided co-ownership in Montreal? The decision often belongs to the board of directors (board), but it must comply with the declaration of co-ownership, the current contract and sound transition practices. Here is a clear guide to terminating the current mandate, choosing a new partner and ensuring a smooth transfer of files, access and responsibilities.

When and why to replace a manager

Several signs indicate that it is time to consider a change.

• Lack of financial transparency, delays in financial statements or in monitoring the contingency fund.
• Poor communication with co-owners and the board, with minutes delivered late after the annual general meeting.
• Insufficient management of work and preventive maintenance, with the maintenance logbook (EUC) neglected.
• Increases in condo fees (common expenses) or special assessments without a clear explanation.
• Regulatory compliance issues or incomplete files for the register of co-owners and the common portions/private portions.

Before taking action, review the declaration of co-ownership and the by-laws of the immovable. Some divided co-ownerships require a specific board resolution or a co-owner vote at the annual general meeting to appoint or dismiss a manager.

Who decides and which rules govern the process

As a general rule, the board administers the affairs of the syndicate, unless the declaration of co-ownership provides otherwise. Always review the management contract: term, renewal terms, termination clauses and notice periods (30, 60 or 90 days, depending on the circumstances).

• Right to terminate: for an indefinite-term contract, the Civil Code of Quebec provides for reasonable notice to terminate a service contract (see article 2091 C.C.Q.). In other words, you may terminate the contract with adequate notice, without cause.
• Records and documents: the syndicate must keep and maintain its records; they must be delivered to the syndicate when there is a change in management (see article 1070 C.C.Q.).
• General framework for divided co-ownership: see the rules applicable to the syndicate and the board (see articles 1039 and following of the C.C.Q.).

For more information:

• LégisQuébec – Civil Code of Quebec (C.C.Q.) – Divided co-ownership
• LégisQuébec – Service contract, termination (article 2091 C.C.Q.)
• RGCQ – Best practices in condominium management

Steps for a successful transition

1) Review the key documents

• Current management contract: term, renewal, notice, exclusivity clauses.
• Declaration of co-ownership and by-laws of the immovable: who appoints the manager, voting requirements, quorum and notice procedures.
• Most recent board and annual general meeting minutes: relevant decisions, outstanding follow-ups and disputes.

2) Decide at the board level and document the decision

• Hold a board meeting, vote on the termination and, if necessary, the request for proposals for a new manager.
• Draft a clear resolution and attach it to the minutes. Indicate the mandate’s end date and the person responsible for follow-up.

3) Notify the current manager

• Send written notice in accordance with the contractual notice period and the spirit of article 2091 C.C.Q. State the end date and the requirements for returning documents and access credentials.
• In the event of serious breaches, consult a legal professional to assess termination for cause and limit the risks.

4) Choose the new manager

• Define your needs: administrative, financial and operational management. See our services: administrative management, financial management and operations.
• Compare proposals, tools, response times and references. Ask for a transition plan and a dedicated project manager.
• Check the quality of follow-up for the maintenance logbook (EUC), requests for proposals from contractors and quality control. When hiring building contractors, follow the rules of the RBQ.

5) Organize the transfer of files and access

• Accounting: general ledgers, trial balances, bank reconciliations, lists of accounts payable/receivable, co-owner balances, budget and cash-flow forecasts.
• Contingency fund and operations: bank statements, investments and usage policies.
• Records and compliance: declaration of co-ownership, by-laws, minutes, co-owner lists, maintenance logbooks/EUC, warranties and manuals.
• Contracts and claims: insurance, claims, work files, bids and contractor warranties.
• Access: accounting systems, co-owner portals, banks, email accounts, service numbers, keys/fobs and access controls for the common portions.
• Data security: change shared passwords, revoke access and create new official syndicate accounts.

6) Communicate with co-owners

• Send a board notice explaining the transition, the effective date, the new manager’s contact information and the impact on condo fee payments.
• Update the website or portal. Explain the process for maintenance requests, assessments and emergencies.
• Present the transition at the next annual general meeting and record a follow-up item in the minutes.

7) Ensure operational continuity

• Prioritize critical files: ongoing requests for proposals, insurance deadlines, regulatory deadlines and work on the common portions.
• Verify automatic withdrawals for common expenses and the routing of payments.
• Schedule a handover meeting between the former and new managers with the board.

For practical guidance, also consult the resources of the RGCQ and the legal framework of the Civil Code of Quebec.

Quick checklist for the board

• Board resolution adopted and recorded in the minutes, with dates and responsibilities.
• Written notice sent to the manager in accordance with the contract and article 2091 C.C.Q.
• New mandate confirmed and transition schedule signed.
• Complete files received: accounting, records, declaration of co-ownership, minutes, EUC and insurance policies.
• Access credentials and keys/fobs delivered; passwords changed; banks updated.
• Communication sent to all co-owners; transition FAQ published.
• Follow-up on work and supplier contracts, with RBQ compliance as needed.

To prepare your request for proposals and structure your needs, browse our services and packages. You can also read more advice on our blog.

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

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