What rules have been introduced with the new Civil Code in 1994 and which were previously non-existent?

The new Civil Code of Québec, which entered into force on January 1^st,1994, introduced several important concepts and rules for the drafting of declarations of co-ownership which were missing or incomplete under the old Code. Among those new concepts and rules, we may identify the following ones:

• The co-owners as a body constitute a legal person called the "syndicate of co-owners" of which powers and duties are shared between the board of directors and the general meeting of the co-owners;

• The co-owners may benefit from the use of common portions for restricted use, such as a terrace or parking space, and they are then responsible for paying themselves the costs and expenses relating to these common portions for restricted use through an additional contribution;

• The syndicate of co-owners is required to establish a contingency fund to finance future work on common portions of the building;

• The syndicate of co-owners must take out a group insurance for the replacement value of the building in case of loss, and the insurance proceeds must be paid to a trustee who is responsible for ensuring the reconstruction of the building, if any;

• As mentioned above, the new Civil Code now provides for various types of majority vote required at a general meeting of co-owners depending, for example, on whether the co-owners wish to change the by-laws of the immovable, amend the act constituting the co-ownership, or change the intended use of the building.

Given these reforms, there is reason to believe that declarations of co-ownership drafted before 1994 had some significant flaws and gaps in light of the law currently in force and they are likely to generate a lot of interpretation disputes between co-owners.