Condo fees, the contingency fund and what they reveal about the building

Buying a condo means buying a share of an entire building. Your unit may be spotless, but if the shared roof needs replacing and the contingency fund is empty, you and your neighbours will foot the bill. The good news: since Bill 16 (Loi 16), syndicates of co-owners must produce documents that finally let you see these expenses coming. You just need to know how to read them.

Condo fees: what they pay for and how they count

Condo fees pay for upkeep of the common areas, the building's insurance and contributions to the syndicate's funds, including the contingency fund set aside for major repairs. They're set by the annual budget voted at the general meeting, and they can go up.

For the lender, half of your condo fees (50%) goes into your gross debt service (GDS) ratio, capped at 39% of your income along with the mortgage, taxes and heating. With fees of $400 a month, the lender only counts $200.

For your budget, 100% of the fees leave your account every month. Run your numbers with the full amount. Borrowing capacity vs comfortable budget →

What Bill 16 requires the syndicate to prepare

The regulation setting out these obligations has been in force since August 14, 2025. Syndicates have 3 years and 1 day to produce two key documents:

• The maintenance log: it plans the building's upkeep. It must be updated every year and reviewed every 5 years (every 10 years for small condominiums).
• The contingency fund study: it estimates the work needed over 25 years and the contribution required to pay for it. It's redone every 5 years. A fund found to be insufficient must be topped up within 10 years at most — often through higher fees. For a new condo, the contribution is 0.5% of the reconstruction value until the study is done.

On top of that comes the self-insurance fund, mandatory since April 15, 2022: it must reach the amount of the highest deductible on the building's insurance (excluding earthquake and flood). Because these deadlines are still running, some buildings may not have finished their documents yet: ask where things stand.

The certificate on the condition of the syndicate

At the seller's request, the syndicate must provide this certificate within 15 days. It's the most useful document for a buyer. Among other things, it shows:

• the state of the contingency fund and the recommended contribution;
• the common expenses for the last 3 years, the financial statements (surpluses or deficits) and the budget;
• the insurance, the self-insurance fund and the highest deductible;
• claims and inspections over the last 5 years;
• work done in the last 5 years and work planned for the next 10;
• ongoing disputes and amendments to the declaration of co-ownership over the last 3 years.

Since this deadline can run longer than your inspection condition, it's best to make the request early — talk to your broker about it when drafting the offer.

Red flags to look for

• A low contingency fund facing major planned work. That's the classic setup for a special assessment: a lump sum charged to each co-owner on top of the monthly fees.
• Unusually low condo fees compared with similar buildings: they may mean the syndicate isn't setting enough aside.
• Repeated deficits in the financial statements: the budget doesn't cover actual spending.
• Ongoing disputes with a contractor, a co-owner or the insurer.
• Recent special assessments: they can be a good sign (work got done) or a symptom of chronic underfunding. Ask why.
• A high deductible, especially if the self-insurance fund doesn't cover it: after a claim, the difference could be charged to the co-owners.
• No maintenance log or contingency fund study, with no clear timeline for producing them.

Documents to request before waiving the inspection condition

• The certificate on the condition of the syndicate.
• The declaration of co-ownership and its recent amendments.
• The financial statements for recent years and the current budget.
• The contingency fund study and the maintenance log, or the status of their preparation.
• The building's insurance certificate, with the deductibles.
• The minutes of recent general meetings, which often reveal planned work and tensions between co-owners.

Go through them with your broker and, if needed, your notary. If a document reveals a problem, the inspection condition gives you time to renegotiate or withdraw under the terms of your promise to purchase. Where this step fits in the process →

Official source: Québec.ca — measures for condominiums (in French).

Frequently asked questions