A condo syndicate is the legal entity that consolidates all the co-owners of an undivided co-ownership. But what formalities need to be carried out to record its incorporation? How do you create a condo syndicate?
The cadastral plan
For the notary to be able to publish the declaration of co-ownership, the surveyor must draw up the cadastral plans for the building. These must then be registered with the Land Register of Quebec of the “Ministère des Ressources naturelles et de la Faune”.
The declaration of co-ownership
In order to place a property in co-ownership, the developer or owner of an already-constructed building draws up or has a notary draw up a declaration of co-ownership. This is the settlement of the rules for living and administration of the condominium which determines, in particular, the purpose of the building (residential, commercial, mixed use, etc.) and establishes the common and private portions, as well as the methods of burden sharing. Once this document is ready, the notary carries out the registration of the declaration of co-ownership at the land register.
Registration at the business register
Furthermore, the condo syndicate must also register with the Quebec enterprise registrar (REQ) within 60 days of publishing the declaration of co-ownership in the land register. This declaration of registration must include the following information:
- The syndicate’s date of incorporation
- The list of administrators, along with their names, addresses, and positions on the board (as well as the date of entry into service and departure from office in the case of the manager)
- The number of employees employed by the syndicate (building employees, caretakers, etc.).
The start of the condominium
The syndicate’s first fiscal year starts at the birth of the condominium, as previous expenses remain the responsibility of the initial owner. Starting from this date, the condo syndicate is also responsible for ensuring the conservation of the building, as well as the maintenance and administration of the common portions, the protection of the rights relating to the building or the condominium, and all the operations of common interest.
Managing a new condominium
Once the declaration of co-ownership has been published in the Quebec land register, the developer or owner of at least half of all the portions, or a representative whom they appoint, temporarily administers the building. But once they no longer possess 50% or the majority of votes, the building’s board of directors must call a special meeting of co-owners (transitional meeting) within 90 days to elect a new board. This board’s mission will be to manage the building on behalf of the syndicate—in other words, the co-owners of the lots as of the date of the meeting. In case of sale, the future buyers, although they did not participate in the election of this board, will also deal with this same board of directors. During the general meeting of co-owners, which will include the election of the members of the board on the agenda, they will be entitled to vote to elect this new board at this time.
It’s necessary to follow several steps to create a condo syndicate. The cadastral plans and the declaration of co-ownership should be drawn up and published, and the syndicate should be registered with the Quebec enterprise register (REQ). The building is temporarily managed by the developer or an administrator whom they have appointed until the meeting responsible for appointing the new board is held.