Inter-Syndicate Agreements for Phased Co-Ownership in Quebec

In a divided co-ownership developed in phases, several syndicates coexist and often share infrastructure: a common entrance, parking, a mechanical plant, landscaping or a pool. Without a clear framework, interactions between syndicates quickly become a source of friction. This is where an inter-syndicate agreement becomes essential: a contract that specifies who pays for what, who decides what, and how shared assets are maintained.

This article explains the purpose, structure and adoption process for an inter-syndicate agreement, with practical guidance for your board of directors. We cover governance, cost allocation, insurance obligations and maintenance to equip your syndicate and co-owners.

What is an inter-syndicate agreement, and why is it crucial?

An inter-syndicate agreement is a written agreement entered into by two or more syndicates within the same phased co-ownership. Each syndicate remains a separate legal person (see section 1039 of the Civil Code of Quebec), capable of entering into contracts for the benefit of its co-owners. The agreement governs the use and maintenance of equipment, spaces or common services shared by the phases.

Without an agreement, improvised practices quickly run up against the declaration of co-ownership, the by-laws of the immovable and budgetary obligations. Common expenses are not allocated “by feel”: the Civil Code provides that co-owners contribute to common expenses according to the relative value of their fraction, unless otherwise validly stipulated (see section 1064 of the Civil Code of Quebec). In a phased structure, this principle must be applied between syndicates through clear allocation formulas.

In practice, an inter-syndicate agreement:

• defines the assets or services that are actually shared (e.g. generator, access road, waste management room);
• establishes the applicable cost-allocation formulas (operation, maintenance, major repairs and replacements);
• creates an inter-syndicate committee and sets out its voting rules;
• specifies insurance requirements, access to technical rooms and service levels;
• provides dispute-resolution mechanisms.

For transparency and traceability, the agreement should be placed in each syndicate’s records and referenced in the relevant minutes.

Typical situations where an agreement is essential

Several recurring configurations justify a well-drafted inter-syndicate agreement:

• Shared access, circulation and parking (gate, ramps, markings, snow removal and seasonal maintenance);
• Central mechanical systems (heating, cooling, ventilation, boiler, generator and cooling towers);
• Safety infrastructure (shared fire alarms, sprinkler network and monitoring centre);
• Shared services (waste management, compactor, recycling, bulky items and special collection);
• Recreational spaces (pool, gym and community room), with reservations and access control;
• Building envelope or roofs shared by several phases, or building junctions requiring coordinated work;
• Technology networks (fibre, intercom, IP access and RFID access control);
• Landscaping and exterior lighting.

In Montreal and on the South Shore, we often see developments where three or more syndicates share a mechanical plant and parking. Without an agreement, maintenance billing, insurance and the resolution of breakdowns become an operational headache for each board of directors.

Essential clauses: governance, costs and maintenance

An effective inter-syndicate agreement is precise, measurable and aligned with the declaration of co-ownership and each syndicate’s by-laws.

Cost-allocation formulas (operations and long term)

Provide separate formulas based on the nature of the expense:

• Operations and routine maintenance: it is common to use the number of units, the area served, thermal demand, intensity of use or a weighted combination.
• Major repairs and replacements: the formula is often based on replacement value or the share of technical benefit. The agreement must be coordinated with each syndicate’s contingency fund and, where necessary, provide for a dedicated common fund.
• Energy and consumables: prioritize measurements (meters or sub-metering) or, failing that, a transparent formula with an annual adjustment mechanism.

Include:

• a clear calculation basis (definitions, plans and technical schedules);
• indexation (CPI or a sector index) and periodic review of the formula (e.g. every three years);
• adjustment mechanisms if one phase develops more quickly than another.

Decision-making mechanisms and the inter-syndicate committee

• Committee: designate 1-2 directors per syndicate, with a rotating chair and a secretary responsible for the minutes.
• Voting rights: equal (1 syndicate = 1 vote) or weighted according to the cost-allocation formula. Specify the required majorities (routine maintenance: simple majority; CAPEX: qualified majority; change of use: unanimity, depending on the impact and compliance with the destination of the immovable).
• Budgets and calls for funds: adoption schedule, payment terms, interest and penalties for late payment.
• Accountability: annual financial statements for the “inter-syndicate component,” an audit where necessary, appended to each syndicate’s reports.

Access, service levels and regulatory compliance

• Technical access: schedules, escorts, shared padlocks, safety instructions and emergency procedures.
• Service levels: response times, seasonal requirements (snow removal) and equipment operating hours.
• Régie du bâtiment du Québec (RBQ) compliance: contractor qualifications, maintenance logs and mandatory certificates for regulated systems.

Insurance, losses and liability

• Inter-syndicate insurance: replacement value of shared assets, deductibles and allocation of deductibles according to fault or the cost-allocation formula.
• Loss management: initial emergency measures, notice to insurers, allocation of uninsured costs and recourse against a responsible third party.
• Prevention: maintenance logbook (EUC) for shared equipment, inspections and a preventive maintenance schedule.

Adoption and amendment process

The typical process for a board of directors wishing to enter into an inter-syndicate agreement is as follows:

1. Joint assessment: prepare an inventory of shared assets, current contracts, expenses and problem areas.
2. Drafting mandate: retain a professional (lawyer or notary) to prepare a draft aligned with the declaration of co-ownership and each syndicate’s by-laws.
3. Negotiation: hold workshops between boards of directors to finalize the governance clauses, cost-allocation formulas and service levels.
4. Internal approval: each board of directors adopts a resolution; depending on the impact, submit the agreement to the annual general meeting of each syndicate for ratification. The applicable majorities arise from the voting rules and the agreement’s effect on common expenses and the use of common portions (refer to the Civil Code of Quebec provisions governing decisions at meetings).
5. Signature and coming into force: designation of authorized signatories, effective date and transitional conditions.
6. Publication and retention: place the agreement in each syndicate’s records, communicate it to co-owners and update management documents (maintenance logbook, financial planning and maintenance schedule).
7. Review and monitoring: maintain an active inter-syndicate committee, hold periodic meetings, share minutes and conduct scheduled reviews of the formulas.

When the agreement concerns immovable elements requiring a real servitude (e.g. passage or access to a mechanical plant), consider a separate notarized instrument that is published. A contractual agreement does not eliminate the requirements of real rights.

Common mistakes and best practices

Common mistakes observed in divided co-ownerships under our management or involving a syndicate we assist:

• Failing to precisely identify shared assets and their physical boundaries on plans.
• Using one cost-allocation formula for all expenses despite different usage profiles.
• Neglecting documentation: no minutes for the inter-syndicate committee and no up-to-date technical schedules.
• Underestimating insurance and deductibles, or omitting the emergency procedure.
• Failing to coordinate with the contingency fund and CAPEX planning.

Best practices:

• Append diagrams, technical data sheets and a maintenance schedule.
• Specify SLAs (service time frames) and assign a named person responsible for each task.
• Provide for mediation or arbitration in the event of an impasse.
• Require every contractor to be properly qualified and compliant with RBQ requirements.
• Harmonize the syndicates’ by-laws of the immovable regarding the use of shared spaces.

Legal considerations and regulatory references

• Syndicate and power to contract: the syndicate is established by law and may enter into contracts for the administration of common portions (see section 1039 of the Civil Code of Quebec).
• Common expenses and allocation: co-owners contribute according to the relative value of their fraction, unless otherwise validly stipulated; this principle informs inter-syndicate allocation formulas (see section 1064 of the Civil Code of Quebec).
• Decisions at meetings: adapt the majorities according to the agreement’s effect on use and expenses. Avoid exceeding the destination of the immovable established by the declaration of co-ownership.

To validate a specific point, consult the official legislation and do not hesitate to seek legal advice.

FAQ — Inter-Syndicate Agreements for Phased Co-Ownership

• Is an annual general meeting required to adopt the agreement? Often yes, especially if the agreement affects common expenses, the use of common portions or requires dedicated calls for funds. Have a professional validate the process.
• Who pays if a syndicate refuses to pay its share? Provide for penalties, interest and an inter-syndicate formal demand for payment. As a last resort, the syndicates may exercise the legal remedies provided for in the agreement and the Civil Code of Quebec.
• Should we create a common fund? This is advisable for major replacements of shared assets. Otherwise, each syndicate budgets its share through its contingency fund, according to a coordinated schedule.

Would you like to structure or review an existing agreement? Our team can assist your board of directors with administrative and operational management.

Useful sources and resources:

• Civil Code of Quebec (LégisQuébec)
• Régie du bâtiment du Québec (RBQ)
• Regroupement des gestionnaires et copropriétaires du Québec (RGCQ)
• Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ)

To learn more about administrative management and document templates, see our services:

• Our services — Administrative management
• Who we are
• multiRent Blog

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

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