Definition
Bill 16 (An Act to amend various legislative provisions respecting divided co-ownership, adopted in 2019 and progressively in force from 2020) represents the most significant reform of condominium law in Quebec since 1994.
Key measures: - **Contingency fund**: obligation to fund based on results of a reserve fund study conducted by a professional (engineer, architect, technologist). Chronically underfunded corporations are now exposed to lawsuits. - **Maintenance log**: every corporation must maintain an up-to-date maintenance log documenting the history of completed and planned work. This document must be provided to any prospective buyer. - **Mandatory disclosure**: when selling a condo, the corporation must provide the buyer with an up-to-date declaration of co-ownership, minutes of the last 3 years, financial statements, and reserve fund status. - **Administrator accountability**: administrators must now be trained and can be held liable for mismanagement.
Impact on lenders: when evaluating a condo, mortgage lenders increasingly verify reserve fund status to ensure the building is not at risk of special assessments that would affect the borrower's solvency.