Water Sub-Meters in Co-Ownership: Legal in Quebec?

In Quebec, several divided co-ownership syndicates are considering installing water sub-meters so they can rebill each fraction based on its actual consumption. The goal is often to reduce common expenses for households that use less water and encourage conservation. But is it legal? And how can it be done without creating disputes between co-owners?

Here is a practical overview of the legal framework, possible rebilling models and implementation steps, adapted to the realities of divided co-ownership properties in the Greater Montreal area.

What the law says: principles to follow

• Operating expenses, including water when it is paid for by the building, are common expenses. By default, each co-owner contributes according to the relative value of their fraction, unless the declaration of co-ownership provides otherwise (see section 1064 of the Civil Code of Quebec; see LégisQuébec).
• The board of directors prepares the budget and collects assessments, but it cannot, on its own, change the method for allocating expenses set out in the declaration of co-ownership (see section 1072 of the Civil Code of Quebec).
• To rebill water based on the measured consumption of fractions, the declaration of co-ownership must expressly authorize it, or it must be amended in accordance with the enhanced majorities provided for in the Civil Code of Quebec (see sections 1097 and following). A standard resolution passed at an annual general meeting may be insufficient if it conflicts with the declaration of co-ownership.
• Sub-meter installation is permitted if the work complies with plumbing standards and is carried out by a contractor duly licensed by the Regie du batiment du Quebec (RBQ). Access to private portions must be organized in accordance with the declaration of co-ownership and the by-laws of the immovable.

Useful references:

• Civil Code of Quebec (LégisQuébec) — sections 1064, 1072 and 1097:
  • https://www.legisquebec.gouv.qc.ca/fr/document/lc/CCQ-1991#art-1064
  • https://www.legisquebec.gouv.qc.ca/fr/document/lc/CCQ-1991#art-1072
  • https://www.legisquebec.gouv.qc.ca/fr/document/lc/CCQ-1991#art-1097
• RBQ — find a licensed contractor: https://www.rbq.gouv.qc.ca/

Compliant rebilling models (based on your declaration of co-ownership)

Every divided co-ownership property has its own declaration of co-ownership and history. Before making a decision, read the constituting act and the by-laws of the immovable carefully.

• Permissive declaration of co-ownership: some declarations of co-ownership provide that certain services, such as water and heating, may be allocated to fractions based on measured consumption. In that case, the board of directors can operationalize the rebilling, subject to a resolution at the annual general meeting approving the reading method and billing frequency.
• Silent or conflicting declaration of co-ownership: if the declaration of co-ownership strictly requires the relative value to be used for all common expenses, an amendment to the declaration of co-ownership will be needed to allow water to be treated differently. This amendment requires the majorities set out in the Civil Code of Quebec and careful drafting by a notary.
• Voluntary agreement: instead of immediately amending the declaration of co-ownership, some syndicates obtain individual written agreements under which each co-owner consents to rebilling based on consumption. This mechanism may be a stopgap, but it is less robust than a clear clause in the declaration of co-ownership and must be managed carefully, particularly when a fraction is sold.

Important: if a fraction is rented, the financial relationship with the tenant is between the co-owner and landlord and the tenant. The syndicate does not bill the tenant directly, except where a specific provision permitted by the declaration of co-ownership and applicable law applies.

For governance best practices, also consult the resources of the Regroupement des gestionnaires de copropriétés du Québec (RGCQ): https://rgcq.org/

Recommended implementation process

1. Technical assessment
   • Map the plumbing, risers and water entry points for each unit.
   • Confirm the feasibility and type of sub-meter—mechanical, electronic or radio-frequency—with a contractor holding an RBQ licence.
2. Legal analysis
   • Have a notary or lawyer review the declaration of co-ownership to confirm the permitted allocation method and, if necessary, prepare a draft amendment that complies with the Civil Code of Quebec.
3. Budget scenarios
   • Assess the initial investment, including equipment, installation, access to units and readings, and the amortization plan through common expenses. Anticipate the net effect on assessments and on the “water” line in the operating budget.
4. Information and buy-in
   • Present the objectives—fairness and incentives to conserve—the reading method, dispute rules and projected budget impact at an information meeting before the annual general meeting.
5. Annual general meeting and resolution
   • Include the documents—the draft clause or by-law and financial scenarios—with the notice of meeting. Have the decision and application parameters recorded in the minutes of the meeting.
6. Work and access to private portions
   • Schedule access with written notice in accordance with the declaration of co-ownership. Ensure that the work complies with plumbing standards and that the meter calibration seals meet requirements.
7. Commissioning, readings and rebilling
   • Set a reading frequency—monthly, every two months or quarterly—along with a collection tool and a rule for handling missed readings. Establish clear payment deadlines and methods that are aligned with assessments.
8. Documentation and maintenance
   • Add the equipment and procedure to the maintenance logbook / EUC. Plan periodic accuracy checks, including recalibration or replacement as needed, and a procedure for breakdowns or anomalies.

Privacy and personal information

Consumption readings associated with an identified fraction may constitute personal information. Comply with the Act respecting the protection of personal information in the private sector, often associated with “Bill 25,” regarding minimum retention, restricted access and data security. Reference: https://www.legisquebec.gouv.qc.ca/fr/document/lc/P-39.1

For operational matters such as billing, reminders and allocations, see how our financial management services can support you: financial management services and administrative management.

Financial effects and budget management

• Perceived fairness: rebilling based on consumption reduces transfers between high and low consumers.
• Incentives: households adjust their usage, and leaks are detected sooner.
• Budget: the “water” line becomes “rebilled”; regular assessments may decrease by the same amount if the system is properly implemented.
• Cash flow: anticipate a delay between readings, billing, collection and the municipal payment deadline, and adjust your cash-flow provisions.
• Contingency fund: installation is an asset connected to the plumbing systems; record maintenance and replacement in the maintenance logbook and plan its life cycle. Contributions to the contingency fund remain separate from operating expenses.

To estimate the impact for your property, consult our blog or our operations services for maintenance and access.

Managing exceptions and disputes

• Missed readings: apply an estimation rule, such as a historical average, and then make an adjustment at the next actual reading.
• Access refused: establish a notice procedure and, if necessary, a temporary estimate permitted by your by-laws.
• Defective equipment: replace it promptly and document the corrections on the next invoice.
• Common portions: measure or estimate water used by common facilities, such as a pool or irrigation, and retain a collective share if necessary.
• Challenges: set review deadlines, a communication channel and the types of accepted evidence, such as a dated photo of the meter, an automated reading or a contractor’s report.

In the event of non-payment, apply the provisions of the declaration of co-ownership and the Civil Code of Quebec concerning assessments, with clear, gradual communication before escalating the matter.

FAQ — Water Sub-Meters in Quebec Condos

Can sub-meters and rebilling be imposed without amending the declaration of co-ownership?

Only if the declaration of co-ownership already permits it. If it requires the relative value for all common expenses, an amendment to the declaration of co-ownership in accordance with the majorities set out in the Civil Code of Quebec will generally be required. Consult a legal professional before voting.

Who pays for the installation of the sub-meters?

Unless a specific clause applies, installation on common piping is a common expense allocated according to the declaration of co-ownership. Some divided co-ownership properties allocate an additional share to fractions when an exclusively private connection is required, if the declaration of co-ownership provides for it.

How should rental units be handled?

The syndicate bills the co-owner. Depending on the lease, the co-owner may pass the cost of measured water on to the tenant. The syndicate has no direct billing relationship with the tenant, except under a mechanism expressly permitted by the declaration of co-ownership and the law.

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 the exact rules.

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