Leasing a Roof for Solar Panels in Quebec Co-ownership

The idea of leasing the roof of a divided co-ownership to a solar developer is increasingly appealing to syndicates. The agreement can generate revenue to offset common expenses while contributing to the energy transition. But is it legal in Quebec? Yes, subject to certain conditions. The key is a solid legal and technical structure that complies with the declaration of co-ownership, the Civil Code of Quebec and construction rules.

In this article, we explain the legal framework, the possible types of agreements (roof lease, servitude), the governance steps involving the board of directors and annual general meeting, as well as the financial and tax implications. You will come away with a clear process for assessing a roof lease for solar panels without jeopardizing the common portions or your syndicate’s budget.

The legal framework: common portions, destination and majorities

• In Quebec, the roof is normally a common portion. The declaration of co-ownership may specify its use and the related restrictions. Installing panels or leasing the roof constitutes a specialized use of the common portions.
• The project must comply with the “destination of the immovable” set out in the declaration of co-ownership. If the proposed activity changes the nature of the destination (e.g., a purely residential destination), enhanced majorities may apply.
• Assembly decisions (annual general meeting or special meeting) follow the rules of the Civil Code of Quebec. Depending on the scope of the agreement, a simple majority, qualified majority (e.g., 3/4) or unanimity may be required. Refer to sections 1044 and 1096 to 1101 of the Civil Code of Quebec and your declaration of co-ownership to determine the required majority.

In practice, an agreement that affects the integrity of the roof, grants a real right (servitude) or significantly changes the use of a common portion will often require a resolution at an assembly passed by a high majority. The board of directors should not commit the co-ownership on its own to a long-term agreement affecting the roof without assembly approval and legal advice.

Useful legal resource: Civil Code of Quebec (LégisQuébec) — consult the provisions relating to divided co-ownership and assembly majorities.

• LégisQuébec: Civil Code of Quebec (C.C.Q.) — co-ownership and assemblies: https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991

Possible types of roof agreements

Several legal mechanisms are available. The choice will depend on the duration, access rights, required guarantees and registration in the Land Register.

• Roof lease (rental): the syndicate leases the developer a right to occupy the roof. The lease specifies access, location, duration, maintenance, insurance and indemnification. Registration may be considered to make the agreement enforceable against third parties.
• Real servitude: the syndicate grants a servitude for the installation and access in favour of the developer (or a neighbouring lot). A servitude is a real right that is registered in the Land Register and runs with the immovable. It generally requires a higher majority at the assembly. To learn more about servitudes in real estate, see the OACIQ.
• Occupancy licence: a personal right, often more flexible but less protective for the developer. Less common for long-term projects.

Useful resources:

• OACIQ — Understanding servitudes: https://www.oaciq.com/fr/articles/les-servitudes

Recommended process: technical, governance and compliance considerations

1. Technical feasibility study

   • Have an engineer validate the roof structure (permanent loads, wind and snow loads, penetrations and ballast). The report will serve as a contractual basis.
   • Check the watertightness and current roof warranties. The manufacturer may require a specific anchoring method and a certified installer.
   • Prepare an access and safety plan (anchors, lifeline), as well as a plan for managing existing equipment (antennas, ventilation).

2. Regulatory and RBQ process

   • Electrical and structural work must be performed by contractors holding the appropriate licences. Verify the RBQ licence and the applicable subcategories (electrical, roofing, structural). You can also search for a contractor and consult licence information through the RBQ.
   • Municipal permits may be required. Some cities apply standards relating to visibility from the facade, height or glare.

   RBQ resources:

   • RBQ — Verify a contractor’s licence: https://www.rbq.gouv.qc.ca/trouver-entrepreneur/

3. Internal governance (board of directors, annual general meeting, minutes)

   • The board of directors prepares a complete file: engineering study, draft agreement, risk analysis, market comparables and budget impact.
   • Call an assembly (annual general meeting or special meeting) with a proposed resolution and relevant documents. The resolution specifies the applicable majority under the declaration of co-ownership and the Civil Code of Quebec, the form of agreement (lease/servitude/licence), the duration and the authorized signatories.
   • If necessary, adopt an amendment to the by-laws of the immovable (roof access, safety, schedules) and record everything in the minutes.

4. Insurance and liability

   • Confirm the syndicate’s current coverage and any required endorsements with the insurer. Require the developer to maintain adequate policies (liability, construction, equipment breakdown) and include a “cross-liability insurance” clause.
   • Provide performance guarantees, a letter of credit or a surety for dismantling at the end of the lease and restoring the roof.

5. Agreement and registration

   • Have the agreement reviewed by a notary or lawyer. Clearly define ownership of the equipment, access, maintenance, responsibility in the event of a loss and the terms for ending the agreement.
   • Assess registration in the Land Register (particularly for a servitude or a long-term lease) to ensure enforceability against third parties.

6. Operations and maintenance logbook

   • Include inspections, panel washing and panel maintenance in the maintenance logbook (EUC). Keep a record of roof access and work performed.
   • Update the syndicate’s risk management plan and maintenance schedule.

To structure the process and financial reporting, see our management services:

• MultiRent — Financial management services: https://www.multirent.ca/services/#gestion-financiere
• MultiRent — Administrative management services: https://www.multirent.ca/services/#gestion-administrative
• MultiRent — Blog (co-ownership resources): https://www.multirent.ca/blogue/

Revenue, budget and tax considerations: what to plan for

A roof lease creates ancillary revenue for the syndicate of co-owners. When managed properly, this revenue can help stabilize common expenses, fund planned work or contribute to the contingency fund.

Allocating the revenue

• Current expenses: temporarily reduce assessments if cash flow permits.
• Contingency fund: make a recurring contribution to secure major work identified in the maintenance logbook.
• Dedicated reserve: build a reserve for restoring the roof and dismantling the installations at the end of the agreement.

Accounting and transparency

• Classify the revenue in the syndicate’s annual financial statements and present it clearly at the annual general meeting. Attach the lease or a summary to the minutes.
• Update the projected budget and explain the assumptions (indexation, periods when the system is out of service, insurance and the deductible in the event of a loss).

Taxes (GST/QST) and registration

• Leasing a space (the roof) may constitute a taxable supply. Depending on the threshold and the nature of the activity, the syndicate may have to register for GST/QST, collect the taxes and remit them. Check your situation with Revenu Quebec.

Tax resource:

• Revenu Quebec — QST/GST registration and obligations: https://www.revenuquebec.ca/fr/entreprises/taxes/tvq-et-tps/inscription/

Pay attention to the financial clauses

• Indexation: specify the index (CPI) and the annual adjustment cap.
• Penalties and indemnities: provide compensation if the roof is inaccessible because of the developer or the syndicate.
• Insurance and deductibles: who pays the deductible if a loss related to the installations occurs? Clarify the possible scenarios.

Risks, liability and maintenance: reducing surprises

• Building envelope integrity: penetrations and anchors must comply with the roof manufacturer’s and roofer’s instructions. Require shop drawings and a watertightness test after the work.
• Access and safety: set access limits, work notices, schedules and accompaniment by the condominium manager or a board member.
• Performance and availability: establish performance thresholds and maintenance windows, and assign responsibility if future equipment creates shading.
• End of life: plan for dismantling, restoration and the transfer or removal of the components.

For technical compliance and the quality of the contractors involved, consult the RBQ and verify the applicable licences and subcategories before signing.

Additional resource:

• RBQ — Information on licences and subcategories: https://www.rbq.gouv.qc.ca/consommateurs/travaux-de-construction/choisir-un-entrepreneur.html

FAQ — Roof leases and solar panels in a condo

What assembly majority is required?

It depends on the project’s impact. A simple lease with limited occupancy may require an ordinary majority. A servitude, a substantial alteration to the common portions or a change in destination may require a qualified majority or even unanimity under the Civil Code of Quebec (sections 1096 to 1101) and your declaration of co-ownership. Obtain legal advice before calling the assembly.

Can the board of directors sign without going through the annual general meeting?

The board of directors administers day-to-day affairs. A multi-year agreement that affects the roof and creates long-term obligations generally goes beyond normal administration. The board of directors should submit the file to the assembly, with a resolution authorizing the signing and designating the signatories. Everything must be documented in the minutes.

Where can I find technical requirements and verify contractors?

Consult the RBQ resources to verify licences, understand the applicable subcategories and identify qualified contractors. Also require certificates of insurance and references for similar projects.

Useful resources (reminder):

• LégisQuébec — Civil Code of Quebec: https://www.legisquebec.gouv.qc.ca/fr/document/cs/CCQ-1991
• OACIQ — Servitudes: https://www.oaciq.com/fr/articles/les-servitudes
• RBQ — Find and verify a contractor: https://www.rbq.gouv.qc.ca/trouver-entrepreneur/
• Revenu Quebec — QST/GST registration: https://www.revenuquebec.ca/fr/entreprises/taxes/tvq-et-tps/inscription/

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 is not a substitute for advice from a tax specialist or accountant. Refer to Revenu Quebec and the Canada Revenue Agency for the exact requirements.

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