As of August 14th, 2025, Bill 16 will bring substantial changes to condominium governance in Quebec, directly impacting the purchase and sale of condo units. This reform aims to ensure the long-term sustainability of buildings by imposing stricter management standards. Navigating this new regulatory environment requires the support of a qualified real estate broker.

Understanding the Requirements of Bill 16

Bill16 introduces a rigorous legal framework to improve the management of co-ownership properties in Quebec, responding to the need for long-term durability and safety. To better understand these new obligations, here are the main requirements that syndicates of co-ownership must now meet to ensure transparent and effective building management:

• Mandatory building assessments by qualified professionals;
• A required long-term maintenance log ;
• A mandatory contingency fund, based on the maintenance log and re-evaluated every five years, to cover future repair work;
• Strengthened insurance obligations under Bill 141, applicable to both common and private areas;
• A certificate (attestation) from the syndicate required once a promise to purchase has been accepted;
• Deposits must be held in a trust account, managed by a notary, lawyer, or other authorized professional.

Starting August 14th, 2025, all syndicates of co-ownership will be required to provide an attestation to the buyer upon the acceptance of a promise to purchase. This document must include detailed information on the financial and administrative status of the condominium.

Furthermore, all new co-ownerships created on or after this date must comply immediately with the new requirements including maintaining a maintenance log, commissioning a contingency fund study by a qualified professional, and establishing a compliant management structure.

Existing syndicates will benefit from a transition period and have until August 14th, 2028, to become fully compliant with all new obligations.

How Bill 16 Affects Your Real Estate Transactions

Bill 16 may introduce uncertainty into the condo market. For example, low monthly condo fees (e.g., $200/month) may seem attractive but often signal non-compliance with the new standards potentially leading to significant increases down the line. In contrast, higher fees (e.g., $400/month) generally indicate responsible, compliant management and long-term stability.

The mandatory syndicate attestation, delivered once a promise to purchase is accepted, offers a detailed snapshot of a building’s financial and structural health.

For buyers: Low condo fees aren’t always a good deal. They may point to an underfunded contingency reserve or a missing maintenance log. A compliant building, though potentially more expensive monthly, offers greater long-term security. The syndicate’s attestation is a key document in evaluating the building’s condition.

For sellers: Buyers will be more diligent and may request access to documents such as the maintenance log, contingency fund study, and meeting minutes. A building that meets Bill16 requirements will stand out on the market and may sell more quickly and at a better price. In cases of non-compliance, anticipate negotiations that reflect potential risks like future special assessments.

Preparing for a Successful Transaction

Before submitting an offer, your broker can help you obtain essential documents, including the maintenance log, contingency fund study, and recent minutes. These materials provide insights into the quality of property management and help interpret the syndicate’s attestation once the offer is accepted.

Closing with Confidence

While Bill 16 promotes responsible property management, it demands greater vigilance.

Buyers: assess condo fees in context and review the key documents.
Sellers: compliance is now a competitive advantage.

Our team is here to guide you with expertise and help you complete your real estate transactions with clarity and confidence.

Note: This article was prepared before the official entry into force of the regulation, scheduled for August 14th, 2025. For the latest information, consult the Gazette officielle du Québec or a qualified real estate legal professional.

Source: Gazette officielle du Québec