15 New rules regarding divided co-ownership 2025

Following the reform of divided co-ownership, the Regulation establishing various rules concerning divided co-ownership, coming into force on August 14, 2025, aims to increase transparency in transactions involving co-ownerships. 

This Regulation from the Government of Québec provides for the implementation of the following elements in connection with new articles in the Civil Code of Québec: 

1. The mandatory content of the certificate attesting to the condition of the co-ownership, which the seller has an obligation to provide at the time of the sale^1. 
2. The procedures regarding the keeping and reviewing of the maintenance log²,  and the standards regarding the contingency fund study³.  
3. The conditions concerning the payment of a deposit to the builder or developer at the time of purchase⁴.
   
   

1) Certificate attesting to the condition of the co-ownership of the syndicate of co-owners: effective August 14

The obligation to provide a certificate on the condition of the co-ownership applies to all divided co-ownerships in Québec, whether or not they are sold through a real estate broker. 

The seller must provide the promising buyer with a certificate attesting to the condition of the co-ownership (article 1068.1 of the Civil Code of Québec). The syndicate of co-owners must deliver this certificate to the selling owner within 15 days following the seller’s request. 

Mandatory content of the certificate: Template available

There is no attestation form established by the government for the certificate. Syndicates may use a variety of templates, provided that all the required information is included. Among others, the Société d’habitation du Québec (SHQ), which spearheaded the development of this Regulation, provides a certificate template on its website at https://www.habitation.gouv.qc.ca/la-shq/copropriete-divise (in French only).

The certificate of the syndicate which the seller must provide to the promising buyer must contain at least the following information⁵:

1. the total amount of the contingency fund on the date on which the certificate was issued, and the recommendation of the contingency fund study on that date as to the amount that must be available in this fund at the start of the year in progress; 
2. the total amount of contributions to the common expenses (commonly called “condo fees”) required from co-owners by the board of directors in the 3 previous years and the total amount of contributions to the common expenses paid by co-owners during that period;
3. the total amount of liquid assets available to the syndicate to cover the current operating expenditures of the co-ownership;
4. the amount of the annual surplus or deficit appearing in the last 3 financial statements of the co-ownership;
5. the budget forecast for the year in progress;
6. a mention to the effect that the syndicate is the holder of the insurance policies that it must take out under article 1073 of the Civil Code;
7. the total amount of the self-insurance fund on the date on which the certificate was issued, and the amount of the highest deductible provided for by the insurance taken out by the syndicate;
8. a summary description of:
   a) the inspections performed and the expert opinions obtained at the initiative of the syndicate, during the last 5 years, that pertained to the general condition of the immovable or one of its major components;
   b) losses having affected, during the last 5 years, the private portion that is the subject of the sale or the common portions of the immovable;
   c) the major repairs and replacements carried out in the common portions, during the last 5 years, as well as the dates and cost of that work;
   d) the major repairs and replacements planned in the common portions, for the next 10 years, as well as the estimated dates and costs of that work;
   e) disputes that are underway to which the syndicate is a party and that are the subject of a proceeding before a court;
   f) the amendments made to the declaration of co-ownership during the last 3 years.

The certificate must be dated and signed by the person authorized to issue it, and it must indicate the person’s name and capacity.

Transitional measures

The Regulation does not provide for any specific transitional measures regarding the certificate of the syndicate. 

Thus the certificate cannot be required for transactions that are in progress as of August 14.

However, a seller who accepts a promise to purchase on or after August 14 will have to provide it to the promising buyer. 

Impact on the professional practices of real estate brokers

A- At the time of signing the brokerage contract

The real estate broker must act proactively and inform the parties involved in the transaction of this new regulatory obligation. He must inform the owner who wishes to sell his condo that he will have to obtain this new certificate from his syndicate.

When should this new certificate be requested of the syndicate?

The real estate broker will have to be proactive so that:

• the seller can respect his legal obligation toward a prospective buyer;
• the buyer receives the information in a transparent and timely manner; 
• the syndicate of co-owners is not required to respond urgently to a potential condition included in a promise to purchase regarding the obtaining of the certificate. 

The seller has a legal obligation to provide the certificate to the promising buyer. 

Therefore as soon as a brokerage contract to sell is signed, the real estate broker is recommended, in his capacity as intermediary and representative of the seller, to submit the request for this certificate to the syndicate of co-owners, in order to be ready to provide it to any prospective buyer.

The brokerage contract for the sale of a co-ownership property states the seller expressly mandates his real estate broker to obtain, on his behalf, from the syndicate of co-owners, all documentation relating to the immovable that the broker deems useful.

Upon receiving the certificate, the seller’s broker must review it, discuss it with his client, and ensure that it contains all the information required by the Regulation. He must also advise the client of the implications of not having this certificate, and, if necessary, refer him to a legal professional.

What happens with the form Request for information to the syndicate of co-owners (RIS)?

The current practice of having the RIS form completed remains relevant since it contains useful information regarding the co-ownership being sold.

The current form Request for information to the syndicate of co-owners (RIS) does not replace the certificate required under the new Regulation. 

B- At the time of drafting a promise to purchase

Scenario 1. The attention is not available at the time of drafting the promise to purchase.
In this case, it is recommended to include a condition to the effect that the seller must provide the certificate required by article 1068.1 of the Civil Code of Québec. This condition must be entered under clause 9.1 “Review of documents by the buyer” of the form Promise to purchase – Co-ownership – Fraction of a chiefly residential immovable held in divided co-ownership (PPD). When drafting this clause, the broker must take into account the 15-day period which the syndicate has to provide the certificate. 

Scenario 2. The certificate is complete and available at the time of drafting the promise to purchase. 
In this case, it is not necessary to insert a condition under clause 9.1 of the PPD form since the promising buyer will draft his promise with the knowledge of the information contained in the certificate. 

However, it is recommended to ensure with the syndicate that the information included in the certificate is still up to date, particularly if a long period has elapsed between the date of the certificate and the drafting of the promise to purchase. 

Upon receiving the certificate, the real estate broker must check that it contains all the information required by the Regulation.

 

2) Maintenance log and contingency fund study 

The new Regulation contains other new requirements for syndicates of ownership:

• Establishment of a maintenance log  
• Obtention of a contingency fund study, which becomes mandatory every 5 years to enable the budgetary exercise essential to the sound management of a property held in co-ownership. 

The content of these documents must be established by professionals designated in the Regulation, and updated regularly. In addition, they must contain minimum information. 

Generally speaking, syndicates have 3 years from August 14, 2025 to establish the maintenance log and obtain the contingency fund study. 

However, if the maintenance log or the contingency fund study was obtained by the syndicate in the 2 years preceding August 14, 2025, they remain valid for a period of 5 years from the date obtained, provided that they were prepared by persons authorized under the Regulation (members of the professional orders designated). 

For certain co-ownerships that meet one of the conditions prescribed in the Regulation – i.e. a co-ownership consisting of no more than 8 private portions or co-ownership where no common portion is located in a building, or if the immovable has no more than 3 floors – the validity of the maintenance log is 10 years. 

 

3) Deposits

In new real estate projects, the deposits required will henceforth have to be paid to a professional designated in the Regulation, responsible for managing funds held in trust. The professionals authorized for this purpose are are lawyers, notaries, chartered professional accountants, and members of the Ordre des administrateurs agréés du Québec.

In order to protect the public, developers are no longer allowed to collect these sums directly. 

Follow regular communications from the OACIQ and consult Élise, the conversational agent, which has been updated to reflect these new rules.

However, note than some contents currently available on the OACIQ website may not reflect the recent regulatory amendments. Be sure to check the dates on which these contents were last updated.

[1] art. 1068.1 C.c.Q.
[2] art. 1070.2 C.c.Q
[3] art. 1071 C.c.Q
[4] art. 1791.1 C.c.Q
[5] Art. 10 du Règlement établissant diverses règles en matière de copropriété divise.
[6] Art. 151 de la Loi visant principalement l’encadrement des inspections en bâtiment et de la copropriété divise, le remplacement de la dénomination de la Régie du logement et l’amélioration de ses règles de fonctionnement et modifiant la Loi sur la Société d’habitation du Québec et diverses dispositions législatives concernant le domaine municipal (LQ, 2019, c. 28).