Do you want to sell your condo? Are you looking to buy a condominium? The new regulations may upset your plans.
Last year, Quebec adopted a new law supervising Quebec co -ownership. The regulations that result from it are long overdue, but specialists already predict a crisis in the condominium, whose sales have recently redicolved.
Concretely, half of Quebec condominiums do not have enough money in their pension funds, according to Yves Joli-Coeur, specialist in the question: “Many co-owners are in the denial on this issue,” he insists. Especially in the small buildings of a few units. The co -owners are generally not aware of their responsibilities. ”
Especially since the regulations, expected in a few months, will require that the co -ownership unions carry out a study of needs for major works of the next 25 years (structure, roofing, fenestration, etc.). This study must be renewed every five years. It must establish the capitalization of the provident fund and, above all, the funds necessary to carry out the work to come.
This document must be prepared by an engineer, an architect, a technologist or an accountant.
“Obviously, a very large number of condominiums will find themselves in deficit, sometimes important,” continues Me Joli-Coeur. They will have to impose special contributions, sometimes very heavy. ”
It will hurt
There is no condominium police, of course. No one will check if the unions comply with their obligations. And the law provides that they will have ten years to bail out their pension funds.
The problem is that lenders and insurers will not wait a decade before demanding work. Me Joli-Coeur indicates that the average age of Quebec condos is 30 years. So a good part needs work, often urgent.
However, almost 40% of the 40,000 Quebec condos buildings do not have funds to finance them. “If your provident fund totals $ 1.5 million, but the work will cost 2.5 million, and it is necessary to do it next year because we have detected rot in the building, some could end up with a special contribution of $ 100,000, payable in a few months, for example,” he comments.
Worse: number of condos buyers could require a significant drop in the sale price if they note a sub-capitalization of the provident fund, or pass their turn.
Advice
• Do you want to buy a condo? Request a certificate from the state of the condominium by the seller.
• Do you want to sell your condo? Ask your co -ownership union to send you this document. If your provident fund has a large deficit, demand an emergency meeting for co -owners. And expect to have to add hundreds of dollars, if not more, at your condo expenses for the next few months.
• You do not have a study on the provident fund of your condominium? Ask for three submissions from firms or professionals in the field.
