Understanding Law 16 & Its Impacts on Condominiums in Quebec
Official adoption of Bill 16
Bill 16 was officially adopted on July 30, 2025, and will come into force on August 14, 2025.
Condominium syndicates will have three years to comply.
The draft regulation can be found HERE.
Cet article est également disponible en français — In the following article, we attempt to answer questions we frequently receive from our clients about Bill 16. Whether you are a manager, condominium administrator, or co-owner who wants to better understand the changes brought about by Bill 16, this article will provide you with all the information you need to grasp the issues involved in this new regulatory framework and act accordingly. Condominiums are a complex world where transparency, planning, and compliance with legal obligations are essential to protect the value of the building, avoid conflicts, and maintain sound governance.
In this article, you will discover:
Is Law 16 in effect?
Although certain provisions of Bill 16 have been in effect since January 10, 2020, the complete regulatory framework was officially adopted on July 30, 2025. The regulation comes into force on August 14, 2025, marking the beginning of a three-year transition period during which condominium associations will have to comply with it.
With this final adoption, Bill 16 raises many questions for administrators, managers, professionals, and co-owners. It is now confirmed that all legislative components will be applicable as of August 14, 2025, including specific requirements surrounding the maintenance log, the reserve fund study, and the syndicate's certification.
For example, the reserve fund remains mandatory under sections 1071 and 1072 of the Civil Code of Québec. Its purpose is to finance major repairs and foreseeable replacements of common elements. In addition, the maintenance log, whose existence is already provided for in the law, is now governed by clear standards: it must be established and updated according to a structure defined by the regulations, and its review is mandatory at a specified frequency. These requirements ensure greater transparency, more rigorous planning, and increased protection of condominium real estate assets.
A minimum contribution that is still too low
Initially, the contribution to the reserve fund was to represent a minimum of 5% of the annual contributions to common expenses, as provided for in Article 1072 of the Civil Code of Québec. However, this threshold proved to be insufficient in the vast majority of cases, particularly for older buildings or those with components that would be costly to replace in the future (roof replacement, door and window replacement, etc.).
It is in this context that the new regulatory framework adopted in 2025 strengthens financial planning requirements. From now on, syndicates must obtain a reserve fund study every five years, based on the maintenance log, to ensure adequate financing for major repairs to be expected over a minimum period of 25 years. This approach aims to prevent deficits, avoid unexpected special assessments, and protect the value of the co-owners' real estate assets.
A three-year compliance period
The official entry into force of the regulations related to Bill 16, scheduled for August 14, 2025, triggers a transitional period of three years during which condominium associations will have to comply with the new legal requirements. This period is intended to give administrators and managers the time necessary to:
have a maintenance log established in accordance with the standards now in force, including a detailed inventory of common components and their condition;
have a reserve fund study conducted or updated, based on a minimum planning horizon of 25 years;
and ensure rigorous maintenance of the certification required for unit sales.
This transition period is essential to allow for a gradual adaptation of management practices without compromising the rigor of the obligations set out in the new regulatory framework.
How can you prepare now?
Read the declaration of co-ownershipThe first step is to carefully reread your declaration of co-ownership and any relevant documents (minutes, service contracts, previous reports, etc.). This will give you a clear understanding of the history of the condominium, the extent of the rights and obligations of the co-owners and the syndicate, and allow you to quickly identify any potential breaches of the new standards.
Explore the new Bill 16It is strongly recommended that you review the text of the draft regulation to clearly identify the points that apply to your building. If certain provisions seem complex (for example, the obligations surrounding the maintenance log or the specific nature of reserve fund studies), don't hesitate to call on a specialized professional for clarification.
Share the information. Then share your findings with the other administrators at the board meeting. Transparency is essential for fruitful collaboration and for reaching a consensus on the actions to be taken: implementing or updating the maintenance log, creating an inspection schedule, choosing an expert to study the reserve fund, etc.
Carry out technical studies nowAlthough the regulation comes into force on August 14, 2025, it is strongly recommended that you take immediate steps to set up a maintenance log and study the reserve fund. Anticipating these obligations not only allows you to spread the costs more evenly over time, but also reduces the risk of premature deterioration of the building.
Important information about Quebec condominium regulations
Condominiums in Quebec are a constantly evolving field. To ensure sound and harmonious management, legislators periodically adjust the rules and obligations, taking into account the practical challenges faced by condominium associations.
A necessary change
The rapid growth in the number of condominiums in the province has highlighted several issues: premature aging of buildings, lack of reserve funds, conflicts between co-owners and administrations, etc. The aging of the housing stock, whose average age is around 30 years according to the Société d'habitation du Québec (SHQ), makes the situation even more critical: many buildings require upgrading or repair work that can sometimes be very costly.
The main objectives of the reforms
Recent reforms, including Law 16, pursue several key objectives:
Improving transparency: Co-owners must be able to quickly and easily consult financial, technical, and administrative information relating to the building.
Ensure preventive maintenance: Without proper monitoring, certain components (roof, structure, mechanical systems, etc.) can deteriorate to the point of requiring very costly emergency repairs.
Protect against sudden increases in charges: By maintaining a sufficiently funded reserve fund, co-owners avoid financial surprises, such as unexpected special assessments.
Ensure fair cost allocation: Intergenerational issues come into play here, as one generation should not have to pay for shortcomings or underfunding accumulated in the past.
Given that most condominium buildings in Quebec are over 30 years old, these objectives are crucial to avoiding major renovations or internal conflicts.
New obligations for condominium associations
To ensure rigorous and sustainable management of condominiums, Bill 16, now supported by its implementing regulations, introduces or reinforces several key obligations:
Maintenance log: This is a comprehensive record of previous work (invoices, contracts, warranties, etc.), upcoming work, and its schedule. Keeping an up-to-date maintenance log is essential for planning regular maintenance, identifying repairs that need to be done quickly, and promoting transparency.
Reserve fund studies: Associations must have a qualified expert assess their financial needs for at least the next 25 years. This allows them to adjust their contributions to ensure sufficient reserves for major work.
Appointment of a competent professional: Assessments must be carried out by recognized professionals (engineers, architects, certified appraisers, or technologists), thus ensuring the reliability and objectivity of the reports. This requirement prevents inaccurate or overly optimistic estimates that could prove disastrous in the long term.
Financial and technical certification during a transaction: Before the sale of a unit, the prospective buyer is entitled to a clear picture of the financial situation (state of the reserve fund, common expenses, etc.) and the condition of the building (planned work, maintenance log, etc.). This certification builds trust and transparency in the market.
Penalties for non-compliance
Unlike certain areas (taxation or health and safety), there is no fixed scale of specific administrative penalties for co-ownership. Nevertheless, non-compliance (no maintenance log, underfunded reserve fund, etc.) may result in:
Civil liability and legal action: Co-owners or any interested party may sue the association if they believe that its management is negligent or incomplete.
Court injunctions and orders: A court may compel the association to fulfill its legal obligations or provide missing documents.
Internal conflicts and loss of trust: A lack of transparency or insufficient reserve funds can cause tensions, sudden increases in expenses, and a negative atmosphere.
Financing and insurance difficulties: Financial institutions may refuse to grant mortgages or renew mortgages if they consider the condominium to be at risk. Insurers, for their part, may increase premiums, impose stricter conditions, or even refuse to insure a building considered “high-risk.”
Indirect financial penalties: Urgent repairs or forced upgrades (requested by a municipality or court) often cost much more than if maintenance had been planned in advance.
In short, ignoring Bill 16 exposes you to serious problems that can compromise the financial stability of the condominium and create discord. It is therefore strongly recommended that you comply with the legal provisions and, if in doubt, consult a professional.
What's the difference between Bill 16 and Bill 141?
Bill 16: Building maintenance
Bill 16 focuses primarily on preserving divided co-ownerships and improving their operation. In particular, it provides for measures to further protect both sellers and buyers. By strengthening financial planning and preventive maintenance, Bill 16 helps maintain the value of buildings and ensures better collaboration between all parties involved in the condominium.
Bill 141: Insurance
Bill 141, on the other hand, specifically addresses the issue of insurance in condominiums. It introduces new obligations and clarifications regarding:
Liability insurance coverage for condominium administrators to protect them in the event of a lawsuit related to their management.
Mandatory appraisal of the building every five years by a certified appraiser to accurately determine the required amount of insurance.
The creation of a self-insurance fund by the syndicate to cover insurance deductibles and deal with unexpected expenses related to a loss.
The obligation for the syndicate to make available to co-owners a description of the private portions that is sufficiently precise to clearly identify the improvements made by the co-owners.
Complementarity of the two laws
The two laws complement each other to ensure better protection for condominiums. While Bill 16 focuses on preventive management and planning, Bill 141 strengthens financial protection in the event of a disaster.
Together, these two laws establish a comprehensive system designed to prevent both building deterioration and gaps in insurance coverage. This integrated approach thus offers a better balance between protecting real estate assets, equitable distribution of costs, and peace of mind for co-owners.
Better understanding Bill 16: Why is it in place?
In summary, Law 16 aims to respond to current challenges, extend the life of buildings, and promote responsible management.
A response to current challenges
The current model of condominium management has shown certain shortcomings, the most obvious of which is the lack of preventive planning. Too often, insufficient funds are set aside to ensure regular maintenance and replace essential building components when they reach the end of their useful life. This has multiple consequences:
Significant deficits in reserve funds, making it inevitable that special assessments, which can sometimes be very heavy, will have to be levied.
Buildings in advanced states of disrepair, which may require extensive work.
Conflicts within co-owners' meetings over spending priorities and the extent of charges.
Loss of value of units when the building is not properly maintained, which can complicate resale.
Bill 16 addresses these challenges by imposing a long-term vision. It aims to prevent future co-owners from having to pay for shortcomings that have accumulated over many years and from repeating the mistakes of the past.
Extending the life of buildings
Preventive maintenance is at the heart of Bill 16. By identifying long-term needs and ensuring sufficient funding, condominiums can avoid costly repairs and extend the life of their components.
Promoting responsible management
Finally, Bill 16 empowers administrators, who must justify their decisions, rely on expert analysis, and ensure a higher level of transparency toward co-owners. This has led to the professionalization of condominium management, which benefits everyone: greater clarity, better collaboration, and, ultimately, healthier and more sustainable governance.
Need assistance?
The Borée team can help you get your condominium up and running, whether it's drafting or updating the maintenance log or conducting your reserve fund study. By acting early, you protect the value of the building and ensure management that complies with legal obligations.
What you need to know about the new condominium regulations in Quebec
Here is an overview of the proposed new rules and their implications for condominium management.
Professions authorized to carry out maintenance logs and reserve fund studies
The regulations require that the maintenance log and the reserve fund study be entrusted to qualified professionals. Therefore, only members of the following professional orders are authorized to perform these tasks.
Ordre des ingénieurs du Québec (Quebec Order of Engineers);
Ordre des évaluateurs agréés du Québec (Quebec Order of Chartered Appraisers);
Ordre des architectes du Québec (Quebec Order of Architects);
Ordre des technologues professionnels du Québec (Quebec Order of Professional Technologists).
For the reserve fund study, in addition to the members of the above-mentioned professional associations, certified professional accountants (CPAs) are also authorized to carry it out, provided they meet the specific conditions required by law.
Required expertise in management, construction, renovation, and real estate inspection
Qualified professionals must also have expertise in the fields of management, construction, renovation, or real estate inspection.
This additional expertise ensures that those responsible for the maintenance log and reserve fund study have the technical skills necessary to assess the maintenance needs of condominiums in a rigorous and accurate manner.
The maintenance log: accurate monitoring of buildings
The draft regulation requires all condominiums to keep a maintenance log. This document will be used to record and monitor the condition of the building's common areas and the materials, appliances, and equipment that comprise them.
What the maintenance log must contain
the date of installation, if known;
the maintenance work required, except for the work referred to in section 3, as well as the frequency with which it must be performed and the date on which it was performed;
routine repairs and the date on which they were performed;
contracts entered into for the performance of the maintenance work and routine repairs referred to in paragraphs 2 or 3, if applicable;
any warranty contracts in force, if applicable;
reports of any inspections or expert assessments carried out, if applicable;
the manufacturer's maintenance manuals, if applicable.
In addition to the items listed above, the maintenance logbook should also contain additional information that is crucial for the long-term management of buildings.
Additional information
Assessment of the condition of components;
Remaining useful life of materials, appliances, and equipment;
Description of major repairs and replacements to be carried out over the next 25 years at a minimum;
Estimated year of completion and cost of major repairs or replacements to be carried out;
Plans, estimates, and contracts for major repairs and replacements that have taken place.
Update schedule
Mandatory annual update to include new information on work and equipment.
Complete review of the logbook every 5 years for buildings with more than 3 stories or more than 8 private units.
Revision every 10 years for small buildings (fewer than 8 private units and a maximum of 3 stories).
This revision will make it possible to keep the condition of materials up to date and anticipate major replacements or repairs over a period of 25 years.
Study of the reserve fund: anticipating major expenses
The study of the reserve fund must be carried out at least every 5 years for all condominiums. This study is based on information from the maintenance log and allows for the prediction of the costs of major repairs to come.
What the reserve fund study must contain
The total amount of the reserve fund on the date the study is carried out;
An estimate of the cost of each major repair and replacement in the year indicated in the maintenance log;
A recommendation on the minimum amount that should be available in the reserve fund at the beginning of each year and on the amounts to be paid into it annually;
An explanation of the calculations used to establish the amounts referred to in the above points.
Finally, the reserve fund study must be signed and dated by the professional, thereby ensuring that the document complies with legal requirements and is ready to be used by the syndicate for planning major repairs and future replacements.
Certification at the time of sale: mandatory transparency
When a condominium unit is sold, the syndicate is required to provide a certificate detailing the financial and technical condition of the building, in accordance with Article 1068.1 of the Civil Code. This certificate is intended to ensure complete transparency for potential buyers.
What the certificate must contain
Total amount of the reserve fund as of the date of the certificate and the recommendation from the latest study regarding the minimum amount that must be available at the beginning of the current year.
Total amount of contributions to common expenses required from co-owners by the syndicate over the past two years, as well as the total amount of contributions actually paid during this period.
Total amount of cash available to the syndicate to cover the condominium's current expenses.
Amount of the annual surplus or deficit as shown in the condominium's last three financial statements.
Provisional budget for the current year.
Confirmation that the syndicate holds the insurance policies required by Article 1073 of the Civil Code.
Total amount of the self-insurance fund as of the date of the certificate, as well as the amount of the highest deductible provided for by the insurance policies taken out by the syndicate.
Summary description of the following events:
Inspections and appraisals carried out by the syndicate over the last five years concerning the general condition of the building or its main components.
Claims that have occurred in the last five years affecting the private or common areas of the building.
Major repairs and replacements carried out on the common areas during the last five years, as well as those planned for the next ten years or to be carried out as a result of an unforeseen event.
Ongoing disputes involving the syndicate that are the subject of court proceedings.
Changes made to the declaration of co-ownership over the past three years.
This certificate must be dated, signed, and include the name and title of the person authorized to issue it. It provides buyers with a complete and accurate overview of the condition of the co-ownership, ensuring greater transparency during the transaction.
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Down payment management for new construction
The regulation also requires that deposits paid in connection with the construction of new condominiums be held in trust. Only certain professional orders will be authorized to hold these deposits, including:
The Barreau du Québec;
The Chambre des notaires du Québec;
The Ordre des administrateurs agréés du Québec;
The Ordre des comptables professionnels agréés du Québec.
This measure aims to protect buyers by ensuring that deposits are not misappropriated or used for other purposes before the unit is delivered.
Toolkit for condominium associations
Training and support
Condominium administrators, who are often volunteers, can greatly benefit from specialized training to better understand their new responsibilities and strengthen their management skills. Organizations such as the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) and the Association des syndicats de copropriété du Québec (ASCQ) offer workshops, conferences, and educational resources tailored to the realities of condominium associations. Through these training programs, administrators gain a thorough understanding of legal obligations, good governance practices, and financial planning methods, which contributes to more effective and transparent management of their building.
Access to qualified professionals
It is recommended to work with building and finance experts who specialize in condominiums, such as engineers, architects, professional technologists, certified appraisers, certified professional accountants, and actuaries, as well as specialized firms such as Borée services professionnels, to ensure compliance with Bill 16.
Mathieu Marier-Tassé, Eng.
Co-founder
As a construction and financial engineer, I assist condominium associations in ensuring the sustainability of their assets in Quebec.
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