Loi 16 Is Now in Force: What Every Montreal Condo Syndicate Must Do Before August 2028

This article is for informational purposes only and does not constitute legal advice. For guidance specific to your syndicate's situation, consult a qualified legal or real estate professional. 

This affects your building right now

Quebec's Loi 16 implementing regulations came into force on August 14, 2025. All existing condo syndicates have until August 14, 2028 to obtain a compliant contingency fund study. If you haven't started, the clock is running.

Quebec's landmark condo law has been on the books since 2019. Its implementing regulations finally arrived in August 2025 — and with them, a clear set of obligations every syndicate must now meet. Here's what changed, what's required, and what happens if your building falls behind.

For years, Loi 16 (Bill 16) sat in a kind of legal limbo: adopted but not fully enforceable because the implementing regulations hadn't been published. That changed on July 30, 2025, when the Gazette officielle du Québec published Décret 991-2025 — the regulations that give the law its teeth. They came into force two weeks later, on August 14, 2025.

For Montreal's condo boards, this isn't a distant legal abstraction anymore. It's a concrete set of obligations with real deadlines and real consequences if they're ignored.

What Loi 16 actually requires

The law introduces three main obligations for all divided co-ownerships (copropriétés divises) in Quebec. Think of them as three pillars of building accountability:

1. The contingency fund study (étude du fonds de prévoyance)

Every syndicate must commission a contingency fund study from a qualified professional — an engineer, architect, certified appraiser, professional technologist (OTPQ), or CPA. The study must project all major repairs and replacements to common areas over a minimum of 25 years, and calculate the annual contributions needed to cover those costs without a deficit.

This study must be renewed every five years. After the first study, the board has 30 days following the AGM to set contributions at the levels recommended in the study. If the fund is currently underfunded, a catch-up plan must be implemented over a maximum of 10 years.

2. The building maintenance logbook (carnet d'entretien)

The maintenance logbook is a living document that tracks the condition of all common elements, records completed maintenance and repairs, and outlines planned work. It feeds directly into the contingency fund study by providing the baseline data a professional needs to project future needs accurately.

Without a well-maintained logbook, the contingency fund study is essentially built on guesswork — which defeats the purpose of the entire exercise.

3. The syndicate certificate (attestation du syndicat)

When a condo unit is sold, the syndicate must now provide a certificate disclosing the financial health of the building: the current state of the contingency fund, outstanding legal proceedings, known defects in common areas, and other material facts. Notaries are already requesting these documents as a standard part of the transaction process.

A syndicate without an up-to-date contingency fund study will struggle to produce a credible certificate — which can delay or kill a sale.

The timeline at a glance

2019  

Loi 16 adopted by Quebec's National Assembly

The law passes but awaits implementing regulations to become fully enforceable.

July 30, 2025

Décret 991-2025 published in the Gazette officielle

The implementing regulations are officially published, two weeks before they take effect.

August 14, 2025 ← NOW IN EFFECT

Regulations come into force

All obligations are now legally binding. New condos must have a study commissioned by the developer. Existing syndicates begin their compliance window.

August 14, 2028 — DEADLINE

All existing syndicates must have a compliant study

Syndicates that had no compliant study as of August 2025 must obtain one before this date. Studies done within 2 years before August 2025 that meet the new standards remain valid for 5 years.

What this means in practice for your board

Here's what a board needs to actually do — not in legal language, but practically:

• Find out whether your building already has a contingency fund study, and whether it was done after August 14, 2023 (to qualify under the two-year grandfather rule)

• If you don't have a valid study, begin the process of commissioning one from a qualified professional now — don't wait

• Review your maintenance logbook: is it up to date? Does it reflect recent repairs, current equipment ages, and known issues?

• At the next AGM, present the study results and formally adopt the recommended contribution levels

• Verify that your contingency fund is held in a separate, dedicated account — commingling with operating funds is not permitted

• Ensure the board can produce a syndicate certificate on request, particularly ahead of any unit sale

  
  

The real risk: special assessments

The most immediate financial risk for co-owners in syndicates that ignore Loi 16 is the special assessment (cotisation spéciale). This is an extraordinary charge levied on all co-owners when the contingency fund runs out of money to cover a major repair.

We've seen buildings where the contingency fund held $50,000 while projected major work over the next 25 years totalled over $600,000. The gap between those numbers doesn't disappear — it lands on co-owners as a lump sum when the roof needs replacing or the underground parking structure fails.

Special assessments of $5,000, $10,000, or even $25,000 per unit are not hypothetical. They happen — and they happen precisely because syndicates failed to plan properly. Loi 16 exists specifically to prevent this.

What a professional manager does with your contingency fund

At Simpson Groupe, we coordinate the contingency fund study process with qualified professionals, maintain the building logbook as part of our standard service, prepare the syndicate certificate for sales, and ensure contributions are collected and deposited into the correct dedicated account — all tracked transparently through UpperBee for board review at any time.

What good compliance looks like

A syndicate that takes Loi 16 seriously ends up with something genuinely valuable: a clear, honest picture of what their building will need over the next 25 years and a funded plan to pay for it. That translates directly into:

• No surprise special assessments — co-owners contribute gradually, not in emergencies

• Stronger resale value — buyers and their notaries can see the building is well-managed

• Lower insurance risk — well-maintained buildings with documented plans are less likely to face catastrophic failures

• Easier board transitions — institutional knowledge is documented, not locked in one person's head

• Legal protection — the board has demonstrably met its obligations to co-owners

  
  

Frequently asked questions

What is Loi 16 and why does it matter for my condo?

• Loi 16 is a 2019 Quebec law that reformed how condo syndicates manage their finances and maintenance. Its regulations came into full force August 14, 2025. It requires all syndicates to obtain a professional contingency fund study, maintain a building maintenance logbook, and provide buyers with a financial disclosure certificate.

What is the Loi 16 compliance deadline for existing syndicates?

• Existing condo syndicates that did not have a compliant contingency fund study as of August 14, 2025 have until August 14, 2028 to obtain one. Studies completed within the two years before August 14, 2025 remain valid for five years if they meet the new regulatory requirements.

What happens if our syndicate doesn't comply?

• Non-compliant syndicates face legal exposure and practical consequences: buyers' notaries request syndicate certificates that require an up-to-date study, and underfunded reserves eventually lead to large special assessments on all co-owners — sometimes tens of thousands of dollars per unit — to cover deferred repairs.

Who can conduct a contingency fund study in Quebec?

• Under the Loi 16 regulations, the study must be conducted by a qualified professional: an engineer, architect, certified appraiser, professional technologist (OTPQ member), or CPA. The study must project major repairs over at least 25 years and must be renewed every five years.

  
  

Not sure where your syndicate stands?

We assess your building's current compliance position, coordinate contingency fund studies, and handle all ongoing Loi 16 obligations as part of our management service. Contact Us.