- Study of provident funds
How to comply
with Law 16?
Discover the importance of a contingency fund study to protect your finances and preserve the value of your co-ownership in accordance with Law 16.
- Sustainable management
Why is it essential to carry out a provident fund study?
- Law 16 requires a study of the contingency fund every five years by the union.
- The study must be carried out by a qualified professional and includes a maintenance log.
Benefit #1 – Plan to manage better
A well-structured fund allows contributions to be spread over several years and avoids sudden increases.
Benefit #2 – Prevent costly unexpected events
By anticipating major repairs, we avoid special contributions which unbalance the co-owners' budget.
Advantage #3 – Add value to your building
A well-maintained building, with a solid capital base, maintains or increases its resale value on the market.
Benefit #4 – Inspire confidence in buyers
A well-managed fund demonstrates serious management and reassures future buyers about financial stability.
- Situation actuelle
Future pension fund bonds
Currently, the provisions on the obligation to carry out a pension fund study and to keep a maintenance log are not yet in force.
These obligations will become effective with the adoption of Article 1071 of the Civil Code of Quebec. Although Bill 16 was adopted in December 2019, the precise implementation date of these requirements has not yet been determined. Once in effect, all condominium syndicates will be required to comply with these new rules to ensure transparent and proactive financial management. In the meantime, condominium syndicates are strongly recommended to begin preparing by consulting qualified professionals to conduct preliminary studies and implement best financial management practices.
- What is a provident fund?
What you need to know about the study of the provident fund and law 16
01
Legal obligation in Quebec
Since 2019, Law 16 has required condominium syndicates to carry out a mandatory study of the contingency fund, which must be renewed every five years.
02
Assessment of real needs
This study calculates the amounts needed to cover major repairs and replacement of common areas according to their lifespan.
03
Stability and value assured
A well-structured fund ensures the financial security of co-owners, increases transparency and maintains the long-term value of the building.
04
Heading Title will be Here
A well-structured fund ensures the financial security of co-owners, increases transparency and maintains the long-term value of the building.
05
Heading Title will be Here
A well-structured fund ensures the financial security of co-owners, increases transparency and maintains the long-term value of the building.
- Prevention & stability
Protect your co-owners
Conducting a contingency fund study by qualified professionals is essential to protect co-owners from unexpected financial burdens. This study allows them to plan and spread the costs of major repairs and replacements of essential items over an extended period, thus avoiding sudden special contributions that can be financially burdensome.
- Faq
Foire aux questions
Conclusion
Mettre en place un fonds de prévoyance solide est essentiel pour sécuriser la gestion financière, préserver la valeur de l’immeuble et garantir la tranquillité d’esprit des copropriétaires.
Qu’est-ce qu’une étude de fonds de prévoyance ?
C’est une analyse détaillée qui évalue les besoins financiers futurs pour les réparations majeures et le remplacement des éléments essentiels d’un immeuble.
Pourquoi la Loi 16 rend-elle cette étude obligatoire ?
Pour assurer une gestion financière transparente et éviter aux copropriétaires des charges imprévues ou des cotisations spéciales soudaines.
À quelle fréquence doit-on réaliser cette étude ?
L’étude doit être mise à jour tous les cinq ans afin de refléter l’état actuel et les besoins futurs de l’immeuble.
Qui peut réaliser cette étude ?
Elle doit être réalisée par un professionnel qualifié et membre d’un ordre reconnu, garantissant ainsi la fiabilité des évaluations.
Quels sont les avantages pour les copropriétaires ?
Cette étude permet de planifier les dépenses sur le long terme, d’éviter les hausses soudaines de charges, et de protéger la valeur de l’immeuble.