Legal Updates for Quebec Divided Co-Ownership: New Compliance Regulations Under Bill 16 and Related Provisions

Authors: Ana Maria Lancranjan and Angie Pelonis

Significant legal reforms are reshaping Quebec’s divided co-ownership landscape. If you’re a syndicate, developer, or buyer, here’s what you need to know to stay compliant and avoid costly surprises.

Mandatory Maintenance Logbook

What is the maintenance logbook and why does it matter?

Under Article 1039 of the Civil Code of Quebec, amended by Bill 16, co-ownership syndicates now have a reinforced legal obligation to preserve and maintain common areas. A critical tool to fulfill this duty is the obligation to maintain a logbook (“carnet d’entretien”), which becomes mandatory as of August 14, 2025 under provision 1070.2.

This logbook must comprehensively document the building’s construction history, technical data, maintenance activities, and planned works. It is essential not only for regulatory compliance but also for ensuring continuity in governance and supporting prudent financial planning through reserve fund studies.

Key deadlines for compliance

• Existing syndicates must obtain the logbook by August 14, 2028.
• New syndicates must meet deadlines based on when their transition meeting occurs:
  • If held 30 days before to 90 days after the regulation takes effect, the developer has six months to provide the logbook.
  • If held more than 90 days after, the deadline is 30 days after the meeting.
• Developers must deliver the logbook within 30 days of the transition meeting under Article 1106.1.

Failure to maintain or deliver the logbook could lead to governance issues, liability exposure for negligence, and costly legal disputes. Syndicates and developers should act early to avoid last-minute compliance gaps.

Review your documentation and begin preparing your building’s maintenance logbook ahead of the 2025–2028 deadlines.

Mandatory Reserve Fund Studies: Legal and Financial Safeguards

Under the new regulations, all syndicates must commission a reserve fund study by no later than August 14, 2028. This initial study must be conducted by an independent qualified professional and then updated every five (5) years thereafter.

This study must:

• Provide long-term cost estimates for major repairs and replacements,
• Recommend annual contributions and establish minimum thresholds,
• Detail the methodology and assumptions used.

Syndicates must rely on rigorous, documented financial planning to avoid unexpected special assessments, cash shortfalls and litigation risks related to inadequate funding.

Grace Period for Adjusted Contributions

While the law sets the deadline for completing the reserve fund study, it does not expressly impose an immediate requirement to adjust contributions to match the study’s recommendations. However, syndicates are expected to begin aligning their financial planning accordingly.

This could pose a challenge for many syndicates, particularly those who have historically contributed only the minimum 5% or relied on special assessments to finance major repairs. These practices may no longer be sustainable under the new compliance expectations.

Schedule your reserve fund study before the 2028 deadline and begin budgeting for increased contributions based on its findings to avoid future shortfalls.

New Buyer Information Certificate: Enhancing Disclosure Requirements

Before any unit sale, syndicates must provide a buyer certificate upon request disclosing detailed financial and operational data.

This certificate must include:

• Current balance of the reserve and self-insurance funds,
• Recommendations from the most recent reserve fund study,
• Condo fees charged and paid over the last three years,
• Budget surpluses or deficits from the past three years,
• Current projected budget,
• Major completed or planned work,
• Ongoing legal disputes,
• Any recent amendments to the declaration of co-ownership (within three years).

From a transactional legal perspective, this certificate increases disclosure obligations and transparency, helping sellers fulfill their disclosure obligations, reducing the risk of post-sale claims from buyers.

Establish internal procedures to prepare and issue the buyer certificate quickly and consistently during unit sales.

Deposit Protection for Buyers

Effective August 14, 2025, Article 1791.1 introduces mandatory protections for deposits paid toward residential properties (homes and condominiums) purchased from a builder or a developer. .

These include:

• Deposits must be guaranteed by insurance, trust accounts, or financial guarantees
• Funds must be managed by members of recognized professional orders (e.g., notaries, lawyers, CPAs)
• Developers may not hold deposits directly
• if the unit is not delivered on time, deposits must be refunded providing accrued protection for purchasers.

These provisions are non-negotiable and cannot be waived and significantly enhance financial security for buyers.

Developers must adjust closing processes and deposit-handling protocols to comply with trust and insurance requirements.

What This Means

With these legal obligations taking effect soon, proactive planning is essential. Our team is ready to assist you with:

• Timely preparation and updating of maintenance logbooks and reserve fund studies
• Legal review and issuance of buyer disclosure certificates
• Proper deposit handling and regulatory adherence in new developments
• Strategic risk mitigation to avoid costly disputes and liability exposure

If you manage or advise a co-ownership, or are involved in Quebec real estate development or transactions, now is the time to review your compliance status.

Unsure whether your co-ownership is compliant? We can help you conduct a regulatory audit and implement required updates before key deadlines take effect.

Contact us for tailored legal advice or to discuss how these regulations impact your operations and prepare for these upcoming changes.