The Pros, Cons, and Legalities Shaping Condo Living in Quebec

by Team Broady on Thursday, January 16, 2025

Condo living offers a unique and appealing lifestyle for many homebuyers, especially in urban areas such as Montreal. However, as with any significant purchase decision, it's important to weigh the benefits and drawbacks before committing. Furthermore, understanding recent changes to laws in Quebec is crucial for potential and current condo owners.

Pros of Owning a Condo

Low Maintenance

One of the primary advantages of condo living is the low-maintenance lifestyle it offers. Unlike owners of detached homes, condo residents are not responsible for exterior repairs or landscaping chores, as these are handled by the condo association.

Amenities and Services

Many condos come equipped with amenities that might not be affordable or practical in a single-family home. These can include fitness centres, pools, party rooms, and 24-hour security. Such facilities enhance the quality of life without the burden of individual maintenance.

Location

Condos are often located in urban or developed areas, close to shops, restaurants, and entertainment, as well as public transportation. This can be particularly advantageous for those who appreciate a vibrant lifestyle and/or do not wish to own a car. AffordabilityIn many markets, condos are more affordable than single-family homes. They can be an excellent market-entry point for first-time homebuyers or an interesting option for those looking to downsize.

Cons of Owning a Condo

Condo Fees and Assessments

While the maintenance-free lifestyle is appealing, it comes at a cost. Condo fees can be substantial and are used to cover building maintenance, amenities, insurance, and reserves for future repairs or improvements. These fees can increase, depending on the age of the building and decisions made by the condo board. There is also the potential for “special assessments.” If the condo board’s reserve fund isn’t adequate to cover major repairs, owners may face such assessments, which are one-time fees charged to cover unexpected expenses. This can be financially taxing because they cannot be planned for. Read on to see how the Quebec government has moved to improve transparency surrounding such assessments.

Less Privacy

Living in a condo often means less privacy compared to a detached home. Shared walls and communal spaces mean you’re likely to have more interaction with neighbours, which can be a negative for those who like more solitude.

Rules and Regulations

Condo living comes with its set of rules. These can include restrictions on pet ownership, interior renovations, and even leasing. Potential owners should review these rules closely to make sure they align with their lifestyle.

Bills 16 and 141 Compliance in Quebec

The condo ownership and management landscape in Quebec underwent a significant transformation in 2018-2019 with the introduction and implementation of Bill 16 and Bill 141. These pieces of legislation were created mainly to improve the governance of the condo regime and to promote the financial health of divided co-ownership syndicates. 

Bill 16 was enacted to ensure the proper maintenance of buildings and enhance the level of transparency for condo buyers. Importantly, it requires that condo associations conduct a thorough contingency fund study. The study outlines and assesses the expenses associated with significant projects planned for completion in the future. These projects pertain to the building’s common elements, including such things as windows, exterior cladding, and the concrete slab of underground parking areas. It also provides an annual estimate of the funds needed in the contingency reserve to finance these projects.

In addition, a detailed maintenance logbook must be kept. This document chronicles the building’s history, detailing repairs, upgrades, and renovations carried out over time. It serves as a valuable resource for transferring knowledge between outgoing and incoming board members and is especially helpful for the individual responsible for conducting the contingency fund study. 

Bill 141 mandates that co-owners establish a self-insurance fund, which is a new requirement alongside the existing operating and contingency funds. This fund must hold an amount equal to the highest deductible specified in any of the insurance policies obtained by the board, which represents the portion of costs the insured party must cover in the event of a claim under the common portions for the condo. 

Compliance with these new laws affects condo boards, property management companies and co-owners, necessitating careful attention to legal and financial responsibilities. They ensure that the building remains in good condition and financially stable, protecting owners’ investments.

The Path to Legislation

The roots of Bills 16 and 141 can be traced back to the early 2000s, when the new-condo market in Quebec started to experience rapid growth and as older condos were starting to require costly maintenance. This period was marked by an increasing number of disputes and concerns related to the governance, management, and financial health of condos. Issues ranged from inadequate reserve funds, to lack of transparency in management affairs, to problems with the overall governance of condominiums. These challenges highlighted the existing legislative gaps and the desperate need for improved regulatory framework.

Key Provisions and Reforms

Enhanced financial governance: Bill 16 mandates stricter financial management and planning requirements for condominium syndicates. This includes the obligations to maintain accurate financial records and statements, to establish and maintain a sufficient contingency and insurance funds to cover damages, future repairs and replacements, as well as to conduct periodic condition surveys, inspections, and maintenance plans. 

Improved governance and transparency: To foster better governance, Bill 16 requires more transparent decision-making processes, clearer definitions of the roles and responsibilities of syndicate board members, and improved communication with co-owners.

Dispute resolution mechanisms: The legislation introduces mechanisms aimed at facilitating the resolution of disputes within condominium communities, making it easier for co-owners and boards to address conflicts.

Increased protections for co-owners: The act provides additional protections for condominium co-owners, such as the right to access certain documents and information related to the condo’s management and financial status.

These new laws have significantly impacted the condo landscape in Quebec, resulting in more professionally managed properties, better financial practices, and an overall increase in the quality of governance within condo communities. Nonetheless, the implementation process has posed challenges, particularly for existing condos needing to adapt and conform to the new requirements.At TEAM BROADY, we always stay informed on new regulations and developments in the real estate industry, so we can help you make the right decision. Whether you’re buying or selling a condo, a single-family home, or an investment property, please consider us for your next transaction. We can be reached at 514-613-2988 or by email at info@teambroady.ca.