The legislative background: Bill 16 and what it means
Bill 16, passed in 2019, introduced major reforms to improve the management of condominiums in Quebec. Among its main provisions:
Reserve fund study : Condominium syndicates are required to periodically carry out a study assessing the sums needed to cover major repairs and the replacement of the common portions. This study must be performed by qualified professionals who are members of recognized orders such as the OIQ, the OAQ, the OTPQ, the OEAQ or the CPA order.
Maintenance logbook : A document must be kept setting out the building’s past, present and future maintenance, ensuring proactive and transparent management.
Certificate on the condition of the condominium : A complete certificate on the financial and physical condition of the building must be provided at the time of sale, covering the reserve fund, common expenses and recent repairs.
Stricter bank requirements in 2025
In response to these new legal obligations, financial institutions have adjusted their mortgage lending criteria:
Systematic verification : Banks now require tangible proof of a condominium’s financial health, in particular an adequately funded reserve fund and an up-to-date maintenance logbook.
Impact on financing : Condominiums that fall short of these requirements may see their co-owners’ financing applications refused, or granted only on stricter terms.
What this means for syndicates and co-owners
These new requirements carry several consequences:
Access to financing : Prospective buyers may struggle to obtain a loan for units in condominiums that do not meet these criteria, shrinking the pool of potential buyers and, in turn, possibly the value of the units.
Property values : Well-managed condominiums, with adequate reserve funds and planned maintenance, become more attractive, holding or increasing unit values.
Greater responsibility for syndicates : Rigorous management is essential to preserving property values and keeping co-owners satisfied.
Recommendations for effective management
To adapt to these requirements and secure the long-term future of their buildings, condominium syndicates are advised to:
Carry out reserve fund studies regularly : These studies make it possible to assess future financial needs and adjust contributions accordingly.
Keep an accurate, up-to-date maintenance logbook : Documenting completed work and planning what lies ahead ensures transparency and anticipates future needs.
Communicate effectively with co-owners : Keeping them informed of legal obligations, financial needs and decisions taken fosters smooth management and collective involvement.
Secure your condominium’s future today
In 2025, bank requirements around reserve funds are tightening. Condominiums without adequate funds could face financing difficulties, affecting the value of their units.
Why act now?
Avoid unexpected special assessments : A well-funded reserve prevents emergency levies.
Maintain the value of your property : A well-maintained condominium is more attractive to buyers.
Meet your legal obligations : Bill 16 requires a periodic reserve fund study.
How do you go about it?
Carry out or update your reserve fund study : This analysis assesses the funds needed for major repairs and the replacement of the common portions over a set period.
Put in place an up-to-date maintenance logbook : Document past, present and future maintenance for proactive management.
Talk to your co-owners : Inform them of legal obligations, financial needs and the decisions taken, to encourage smooth management and collective involvement.
Contact us to carry out or update your reserve fund study and keep your building on sound financial footing.