Co-ownership · Contingency fund
It is the most important figure in a condo file, and the one most often glanced at.
The text
Article 1071: "The syndicate establishes, according to the estimated cost of major repairs and the cost of replacement of common portions, a contingency fund to be used exclusively for such repairs and replacement. The fund must be partly liquid and be available at short notice, and its capital must be guaranteed. The syndicate is the owner of the fund."
Three requirements people forget
- Used exclusively. It is not there to cover an operating shortfall or routine upkeep.
- Partly liquid, available at short notice. A fully locked-in fund does not meet the requirement.
- Guaranteed capital. It is not a growth portfolio.
How it is funded
Article 1072: "Each year, the board of directors, after consultation with the general meeting of the co-owners, fixes their contribution for common expenses, which include the sums required to meet the expenses arising from the co-ownership and the operation of the immovable, and the amounts to be paid into the contingency fund and the self-insurance fund."
Your condo fees therefore hold three distinct things: operations, the contingency fund, and the self-insurance fund.
The question a buyer should ask
Not "how much is in the fund" but "how much should be in it". The Code ties the fund to the estimated cost of major repairs and replacement of common portions. A $200,000 fund is excellent for a new eight-unit building and dangerously short for a thirty-year-old tower facing roof, elevators and garage.
The answer sits in the contingency fund study, which the syndicate must keep in its register.
Where this surfaces: the syndicate register
Almost every question above is answered by one source, and it is not the listing. It is the register the syndicate must keep: the declaration of co-ownership, contracts, the cadastral plan, plans and specifications, location certificates, the maintenance log and the contingency fund study.
That is why we request those documents as soon as interest is serious, not after an accepted offer. A problem found before the promise to purchase is negotiated. Found after, it is absorbed.
Three habits before buying a condo
- Read the declaration before the showing sways you. It sets your share of expenses, your votes, and what is allowed.
- Compare the fund study with the fund balance. The gap is your special assessment risk, and it is a number.
- Read the last three sets of minutes. Work deferred year after year always ends up funded by someone. Often the new owner.
Related
Frequently asked
What is the contingency fund for?
Article 1071 reserves it exclusively for major repairs and the replacement of common portions.
Can it cover routine maintenance?
No. The Code says used exclusively for major repairs and replacement.
How do I know if it is sufficient?
Compare it with the contingency fund study kept in the register, rather than reading the balance in isolation.
Articles quoted from the official English version of the Civil Code of Quebec (legisquebec.gouv.qc.ca), consulted 11 September 2026. This page informs; it is not legal advice. For a specific situation, consult a notary or a lawyer.
Published by the Loaa & Manseur team, number one team at RE/MAX Platine in 2024 and 2025. Tell us about your project.