Why comply immediately with Law 16: not waiting is winning!
Bill 16 represents a revolution in the management of co-ownerships in Quebec. Its objective is to ensure greater transparency, sound financial management and the long-term survival of buildings. While the requirements relating to reserve fund studies and maintenance logbooks may seem restrictive at first, complying with them today has undeniable advantages for your co-ownership. Here's why, as a manager or administrator, it's in your interest to anticipate these changes.
1. Reduce long-term costs by protecting your property assets
The new requirements of Bill 16 will oblige co-ownerships to carry out a reserve fund study and keep a maintenance logbook. By doing this in advance, you can clearly identify any work that needs to be done before it becomes costly and urgent. In particular, regular inspections help to avoid unpleasant surprises that can quickly lead to major and costly damage. For example, a roof that is inspected regularly and maintained on time can last several years longer than one that is neglected, avoiding unforeseen expenses that would far outweigh the cost of a simple inspection and preventive maintenance.
This proactive approach also avoids sudden increases in dues, which are often unwelcome by co-owners.
In the latest issue of Condoliaison magazine (p.28 VOL. 25, No. 3 | WINTER 2024), Jan Towarnicki, a well-known figure in the property management and co-ownership sector, states:
‘‘ Every dollar invested in prevention saves up to seven dollars in repairs. It not only pays off, it's essential to preserving the value of co-owners' assets. ‘‘
Borée services professionnels fully shares this vision: prevention is better than cure, because cure always costs much more.
2. Improve co-owner satisfaction and enhance the value of your building
Transparent, forward-looking management creates a climate of trust. By immediately adopting the recommendations of Bill 16, you demonstrate to co-owners your seriousness and your desire to ensure sound and responsible management. This strengthens the confidence of co-owners in the management of the building, improves the reputation of the co-ownership, and may even increase the value of the units on the real estate market. A well-managed condominium is more attractive on the real estate market.
Borée is increasingly finding that some major banks now require a copy of the reserve fund study and the maintenance logbook before granting a financing authorisation.
3. Avoid disputes through early compliance
Failure to comply with the requirements of Bill 16 can lead to legal disputes that could cost your co-ownership dearly. By taking immediate steps to comply, you protect not only the co-ownership's finances, but also your own reputation as an administrator or manager. Compliance is therefore insurance against legal risks and a means of ensuring peace of mind for all co-owners.
4. Benefit immediately from the resources and expertise available
Many professional orders and organizations (RGCQ, ASCQ, etc.) already offer resources to help syndicates of co-ownership comply with the future requirements of Bill 16. By starting now, you can benefit from training, practical guides and the expertise of professionals to prepare your co-ownership for these changes. Acting early gives you an advantage over other syndicates that could be caught off guard when the compliance deadlines come around.
When all co-ownerships want to comply simultaneously as the deadlines approach, the demand for reserve fund studies and maintenance books will increase sharply. As with any market, a significant increase in demand leads to rate increases and longer waiting times.
We are already seeing an increase in demand. Book your studies today to avoid tomorrow's price increases.
Conclusion
Even though the draft regulations are not yet officially in force, acting now to comply with Bill 16 is a wise decision for any co-ownership administrator or manager. Not only will it reduce costs and improve management, it will also ensure the satisfaction of co-owners and protect the value of the immovable. Don't let legal obligations catch you off guard.
Mathieu Marier-Tassé, ing.
Co-foundeur
As a construction and financial engineer, I work with co-ownerships to ensure the long-term future of their assets in Quebec.
