Co-ownerships: Why your contingency fund study is urgent before August 14, 2028

Since the adoption of Law 16 , all co-ownership syndicates in Quebec have been required to have a contingency fund study carried out before August 14, 2028. This requirement is not a simple administrative formality, it is an essential tool to ensure the sustainability of your building, protect the value of your units and avoid unforeseen financial costs.

What are the risks of delaying the study?

• Chronic underfunding of the fund Without a study, the annual contribution is often calculated at random, which results in insufficient funds when major work needs to be carried out (roof, parking, windows, elevators, etc.).

• Sudden and Expensive Special Charges A lack of planning sooner or later results in emergency dues being imposed on condominium owners. These charges can reach several thousand dollars per unit, creating a climate of discontent and sometimes even default.

• Loss of Resale Value Notaries, mortgage lenders, and buyers now verify the existence and quality of the contingency fund study. The absence of this document becomes a red flag that can lower the market value of a unit or cause a transaction to fail.

• Conflicts between co-owners: Financial improvisation leads to tensions. Some pay for unforeseen repairs, others protest, and the atmosphere in the co-ownership quickly deteriorates.

• Legal liability of the union Failure to comply with the law exposes the union and its board of directors to recourse from injured co-owners.

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Why act now?

Waiting until 2028 would be a serious mistake. The longer the union delays, the more it exposes itself to:

• to the increasing costs of deferred work,

• to a snowball effect of financial deficits,

• and the pressure of having to produce a study urgently, without the time to choose a competent professional.

A first study carried out quickly allows:

• to have clear and realistic planning ,

• to set fair and progressive contributions,

• and above all, to protect the investment of all co-owners.

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Conclusion

August 14, 2028, isn't a comfortable deadline; it's a legal and strategic deadline. Every month lost increases the financial, legal, and asset risks of your condominium. Acting now means taking control of your building's future.

Don't let your union suffer, plan ahead. Your initial contingency fund study is the key to a healthy, fair, and safe co-ownership.