Bill 16 in Quebec: What Your Co-ownership Must Know

Adopted in December 2019, Bill 16 (An Act mainly to regulate building inspections and divided co-ownership) is the most significant reform of divided co-ownership law in Quebec in decades. It affects approximately 350 000 co-ownership units across the province. Here is what your syndicate needs to know.

The main changes introduced by Bill 16

1. Mandatory contingency fund study

Every syndicate must have a contingency fund study carried out by a professional (engineer or architect). This study assesses the condition of the common portions and plans the work to be completed over 25 years, along with the associated costs.

Timeline: Existing syndicates had until 2024 to complete this study. If it has not yet been done, it is urgent to get started — penalties and legal consequences could apply.

2. Mandatory maintenance logbook

The syndicate must maintain a detailed maintenance logbook recording all maintenance work carried out on the common portions, the dates, costs and suppliers. This document must be accessible to all co-owners.

3. Minimum contribution to the contingency fund

The law sets a minimum contribution of 5% of the annual budget to the contingency fund. This minimum may be insufficient for some buildings — the contingency fund study will determine the amount actually required.

4. Mandatory insurance

The syndicate must take out civil liability insurance and insurance for the common portions. The insurance deductible must be clearly communicated to co-owners.

5. Enhanced co-ownership register

The syndicate’s register must contain more documents, including the contingency fund study, the maintenance logbook, insurance policies and important contracts.

Compliance timeline

What this means in practice for your syndicate

Additional costs

The contingency fund study costs between 3 000$ and 15 000$, depending on the size and complexity of the building. It is a one-time but necessary investment. For a building with 20 units, this represents 150$ to 750$ per co-owner — a reasonable amount to protect an investment worth several hundred thousand dollars.

A possible increase in common expenses

If the study shows that the contingency fund is underfunded (which is the case for most divided co-ownerships in Quebec), the syndicate will have to increase monthly contributions. A gradual increase now is preferable to a massive special assessment a few years from now.

Greater transparency

The good news: prospective buyers will now have access to reliable information about the condition of the building. This protects the value of your investment.

Consequences of non-compliance

Failing to comply with Bill 16 can result in:

• Directors’ liability: board members may be held personally liable for damage resulting from a lack of documented maintenance
• Difficulty selling: buyers and their notaries are increasingly demanding compliance documents
• Higher insurance premiums: insurers check compliance and may refuse coverage or increase premiums
• Conflicts between co-owners: a lack of planning leads to special assessments that create tensions

How multiRent can help

At multiRent, we support our client syndicates in complying with Bill 16:

• Coordinating the contingency fund study: we refer you to qualified professionals and manage the process
• Maintaining the maintenance logbook: our digital platform makes it easier to track all work
• Adjusting the budget: we prepare contingency fund financing scenarios
• Communicating with co-owners: we explain the changes clearly and transparently at the annual general meeting