Condo Syndicate Signature Policies

In a divided co-ownership, the syndicate’s signature policies play a central role in protecting funds, governing disbursements and supporting sound governance. Clear internal controls limit the risks of errors, payment delays and fraud. They also make life easier for the board of directors (board) and the condominium manager by clarifying who can authorize, approve and execute each transaction.

This article presents a practical approach to designing, adopting and maintaining robust signature policies adapted to the size of your syndicate, your declaration of co-ownership and your operational realities.

Why have strong signature policies?

• Reduce financial risks. A well-defined authorization matrix prevents unauthorized payments, duplicate payments and common expense budget overruns.
• Strengthen traceability. Every disbursement leaves an audit trail (approval, supporting document, date and signatories), simplifying the review of financial statements and meeting minutes.
• Clarify roles. Policies eliminate uncertainty between directors, officers (president, treasurer and secretary) and an external condominium manager.
• Comply with the legal framework. The syndicate is a legal person, and its directors must act with prudence, diligence and loyalty (see the Civil Code of Quebec). See the Civil Code of Quebec on LégisQuébec.

For syndicates managing major work on the common portions (for example, projects arising from the maintenance logbook/contingency fund study), firm controls around payments and advances to contractors are essential to protect the contingency fund.

Legal framework and internal documents to consider

• Civil Code of Quebec (C.C.Q.). The syndicate administers the building and represents the interests of the co-owners; directors have duties of prudence and loyalty (for example, section 321 C.C.Q., governance of legal persons). Consult the C.C.Q. on LégisQuébec.
• Declaration of co-ownership and by-laws of the immovable. They may set out financial rules, designate signing officers and establish certain approval requirements.
• Board resolutions and meeting minutes/annual general meeting minutes. Signing powers must be formalized by resolution, then recorded in the minutes and communicated to banks and partners.
• Industry best practices. The RGCQ provides useful guidance on governance, accountability and budget management.

Keep in mind that the policy must be consistent with your budget, spending procedures, contingency fund planning (section 1071 C.C.Q., financial management of co-ownerships) and your maintenance contracts for the common portions.

Developing an effective signature policy

1. Map your financial flows

   • The syndicate’s bank and investment accounts (operating account, contingency fund and special projects).
   • Payment methods used: cheques, direct deposits, transfers, banking platforms and corporate credit cards (if permitted by the policy).
   • Types of disbursements: routine maintenance, insured loss, capital projects, contributions to public-sector suppliers and professional fees.

2. Define roles and limits

   • Who initiates the expense (condominium manager, caretaker or board member)?
   • Who approves it (for example, treasurer, president or finance committee)?
   • Who executes and signs the payment (two directors, director plus condominium manager, and so on)?
   • Which expenses require two signatures and/or prior approval from the board of directors or annual general meeting?

3. Set thresholds and documentation requirements

   • Small recurring amounts: approval from the condominium manager and joint signature from the condominium manager and a director.
   • Medium amounts: two directors’ signatures, plus a purchase order or contract.
   • Large amounts and capital projects: a board resolution and, where required under the declaration of co-ownership, approval at an annual general meeting. Attach comparative bids and a payment schedule.

4. Govern banking tools and electronic signatures

   • Signature specimens and signing powers registered with the financial institution.
   • Online banking access management: create “preparer” and “approver” users, with strong authentication.
   • Electronic signature policy: ensure that the bank and suppliers recognize the method; retain approval logs.

5. Check suppliers before payment

   • Business number, contact information and required certificates.
   • RBQ licence where necessary; use the RBQ search tool before hiring a contractor.

Simplified example of an authorization matrix

Adapt this matrix to your size, your declaration of co-ownership and your internal capacity. Avoid centralizing everything with one person, especially signing and reconciliation.

Additional internal controls to implement

• Segregation of duties. The person who prepares a payment should not be the person who approves or records it.
• Monthly bank reconciliations. The treasurer reviews them and presents them to the board of directors with the financial statements.
• Payment register. Keep a journal with the invoice number, supplier, nature of the expense, approvals, amounts, dates and supporting documents.
• Prior approvals. For significant expenses, obtain a board resolution before engaging the supplier.
• Supplier controls. Update the list of approved suppliers, check the validity of RBQ licences where necessary and require proof of insurance.
• Link to the maintenance logbook/contingency fund study. For planned projects, align payments with the approved schedule to comply with contingency fund requirements.
• Centralized archiving. Keep contracts, minutes, approvals and proof of payment in a secure, searchable repository.
• Portal and audit log. Prefer platforms that retain the validation history. See our financial management and administrative management services.

To ensure the tax compliance of transactions and access to government online services, consult the user management rules in My Account for businesses on Revenu Quebec.

Implementation, communication and monitoring

• Formal adoption. The board of directors adopts the policy by resolution; the minutes describe the signing powers, thresholds and holders. Send the resolution and signature specimens to the bank.
• Internal communication. Distribute the policy to the condominium manager, caretaker and relevant committees; file it with the declaration of co-ownership and the by-laws of the immovable.
• Training. Make new directors aware of the duties related to signatures and the prevention of conflicts of interest.
• Periodic updates. Review the policy after every change to the board of directors, financial institution or payment platform.
• Ongoing supervision. The treasurer conducts spot checks; a quarterly review by the board of directors is recommended. If a discrepancy arises, correct the process and document the measures taken.

To learn more about financial governance, consult the index of our blog. Additional guidance is also available on the RGCQ website and in the C.C.Q. (LégisQuébec).

FAQ

Is a double signature mandatory for every payment?

No. The Civil Code does not impose a single signature model. However, requiring two signatures for medium and large amounts is a good practice, often set out in a board resolution and sometimes provided for in the declaration of co-ownership. Adjust your thresholds according to the risk and volume of transactions.

Can electronic signatures be used?

Yes, if your financial institution and suppliers accept them. The policy should specify the permitted methods, approval levels and retention of audit logs. Also check access management for government portals through Revenu Quebec.

Who should hold signing powers?

At least two directors (often the president and treasurer) should be authorized to sign. The condominium manager may co-sign routine payments if the policy provides for it. Avoid concentrating all powers with one person and update signing powers whenever the board of directors changes.

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 exact requirements.

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