The Divided Co-ownership Reform: What Do Bills 141 and 16 Mean

Do you own a condo? Here’s what you need to know about laws 16 and 141 and how they impact your condo life and your wallet. Don’t panic: they’re designed to protect you!

Condo buildings are numerous and growing rapidly in different regions. It is a smarter and greener way to use the land and allows people to become homeowners at a much more affordable price than that of a house. But in recent years, there have been flaws in the management of these co-owner buildings. New laws have therefore been put in place.


Bill 16

Bill 16 is used to ensure better maintenance of the condo building. Concretely, it aims to ensure that co-ownership unions set aside funds in the event that expensive renovation work has to be carried out.

A contingency fund study must be conducted every five years to determine the work to be done over the next 25 years in the common areas of the building (windows, balcony, siding, roof, etc.). It is thus possible to determine which sums should be set aside in the contingency fund to avoid unpleasant surprises. Currently, in the event of insufficient funds for urgent repair, all co-owners will have to dip into their pockets immediately, which is not easy for all. It is therefore better to do it in advance, with small amounts set aside each month.

Bill 141

Bill 141 has changed some things for condo owners, specifically in terms of insurance. Co-ownership unions are now required to create a self-insurance fund in addition to the operating fund and contingency fund. This money will be used to pay the deductible in the event of damage. In addition, every five years, a chartered appraiser must be contacted to determine the value in the event of reconstruction so that the insurance premium can be adjusted accordingly.


What does this mean in practice?

What this means is that co-owners will have to expect a direct impact on condo fees. If there has been no money in the contingency fund for a long time and the building is old, a large sum will have to be disbursed sooner or later. But there is no need to worry, the government has planned a period of ten years to put enough money while avoiding excessive condo fee increases.

These two laws are clearly intended to prevent co-owners from being in the red, by anticipating large unforeseen expenses. Therefore, the sums collected each month will make it possible to do renovation work or repair in the event of damage, without throwing off everyone’s budget.