Table des matières
On December 5, 2019, the provincial government adopted a major reform of the Régie du logement, marked by Bill 16. This initiative aims to regulate several aspects of the real estate sector, including building and divided co-ownership inspections, while revising the name and amending the Act respecting the Régie du logement and the Act respecting the Société d’habitation du Québec. It also makes changes to various legislative provisions relating to municipal affairs. The main objective of these reforms is to strengthen the protection of home buyers, co-owners, tenants and landlords. Although the bill was passed in December 2019, its implementation is spread over a three-year period, allowing for a gradual roll-out of the various regulatory measures.
In this article, our Montreal real estate brokers present the new measures underway and those to come.
Future Measures
Real estate regulations governing contingency funds
According to a survey conducted in 2015 by the Regroupement des gestionnaires et copropriétaires du Québec, the Association des professionnels de la construction et de l’habitation du Québec, and the Fédération des chambres immobilières du Québec, it appears that the majority of condominium administrators feel that the amount available in the contingency fund is insufficient. To remedy this situation, a new real estate regulation will require boards of directors to conduct a study every five years to assess the sums to be allocated to the contingency fund. Annual contributions to the fund will be based on the results of this study. The analysis must be produced by an accountant, engineer, chartered appraiser, architect or professional technologist.
This study will be mandatory from the first day following the first 3 years of the new standard’s implementation. In fact, the two main mortgage lenders, National Bank and Desjardins, recently announced that they will no longer finance buyers of divided co-ownerships without a contingency fund.
Condominiums required to keep a maintenance logbook
In Canada, there are currently no regulations requiring condominium boards of directors to keep a maintenance logbook. However, Bill 16, proposed by the provincial government, aims to impose this obligation on boards of directors. The building’s maintenance book will have to be updated every five years (or 10 years for buildings with 8 condos or less). The logbook must identify major maintenance work on the building’s common areas, the dates on which it was carried out, and the inspections performed. This information must be updated annually. The maintenance book must be produced by a professional such as an engineer, chartered appraiser, architect or professional technologist. In addition, syndicates of co-ownership will be required to maintain an up-to-date property condition certificate, and to provide a copy to any co-owner who requests it. These new regulations should come into force by the end of the year.
Creation of a public directory of home inspector certificate holders
At the moment, the profession of home inspector is not governed by any specific regulations. No training or license is required to exercise this profession. However, the new reform underway will introduce a new certificate for building inspectors, to be issued by the Régie du bâtiment du Québec. A public register will also be set up to identify holders of this certification. This initiative is designed to boost buyer confidence by giving them access to qualified building inspection professionals.
Measures in progress
Creating certificates of location
This new bill requires real estate developers to provide syndicates of divided co-ownership with certificates of location, as well as all available plans and specifications.
Protecting buyers' deposits
Builders and developers must protect deposits paid by purchasers of fractional co-ownership. This obligation applies to preliminary contracts signed on or after January 10, 2020. Down payments requiring protection may be secured by a guarantee plan, insurance or a surety bond. Moreover, if a unit has not been delivered by the due date, developers and builders will be required to return the deposit to residential buyers. The date may refer to a specific date or to a period extending over several months (for example, autumn 2024). On the other hand, a clause in a preliminary contract could provide for the possibility of this date being changed due to unforeseen circumstances, if all parties agree.
Governance
Boards of directors must inform co-owners of their decisions within a reasonable period of 30 days. In addition, board members will have to consult the general meeting of co-owners before setting a special assessment or hypothecating the syndicate’s claims. In the event of disagreement, the court may set aside decisions made by the board of directors.
We invite you to keep abreast of the new measures introduced by the provincial government. These provisions are designed to strengthen the protection of home buyers, co-owners, tenants and landlords. Contact our real estate brokers today to learn more about Bill 16.
Sources :
Condos: No Contingency Fund, No Mortgage. https://www.journaldemontreal.com/2024/09/19/condos-pas-de-fonds-de-prevoyance-pas-dhypotheque
Divided and Undivided Co-ownership: How to Differentiate them? https://yanicksarrazin.com/immobilier/information-immobiliere/copropriete-divise-et-indivise-comment-les-differencier/
How to choose your Home Inspector? https://yanicksarrazin.com/immobilier/information-immobiliere/comment-choisir-son-inspecteur-en-batiment/
Quebec gets tough on Condo Maintenance. https://www.journaldemontreal.com/2024/09/13/quebec-se-montre-plus-severe-pour-lentretien-des-condos. https://www.journaldemontreal.com/2024/09/13/quebec-se-montre-plus-severe-pour-lentretien-des-condos
Measures applicable to divided co-ownership (condos) for owners and builders. https://www.quebec.ca/habitation-territoire/achat-vente/condos-coproprietes/mesures-coproprietes
Modernization of housing legislation. https://cdn-contenu.quebec.ca/cdn-contenu/adm/min/affaires-municipales/publications/habitation/BRO_PL16_DocumentBref.pdf
