Did you know that the average number of condominium units built annually went from around 500 in the 1970s to over 1,200 per year between 2010 and 2020? And did you know that the first regulations governing condominiums date back to 1969? It’s no surprise, then, that new laws better adapted to modern life have been introduced in recent years — such as Bill 141. But what exactly is Bill 141 for condos? Let’s take a look with Sébastien Jean from CAP Immobilier.

What is Bill 141 for condos?
Adopted on June 13, 2018, and coming into effect on April 15, 2021, Bill 141 requires condominium syndicates to carry insurance that covers the cost of rebuilding the building in the event of a major disaster. Its main goal is to ensure that co-owners are not personally liable for damages in the event that the contingency fund is insufficient to cover serious damage. But what does this mean for a condo syndicate?

Aimed at modernizing the regulatory framework for the financial sector and enhancing consumer protection, this legislation brings several changes. For example, condominium syndicates are now required to have the building’s reconstruction value appraised every five years by a member of the Ordre des évaluateurs agréés du Québec (OEAQ). This ensures the building is adequately insured based on its current value.

New requirements for insurance funds and liability

Since April 15, 2022, condo syndicates are also required to establish a self-insurance fund. This fund is intended to cover the deductible in the event of an insurance claim. It is separate from the contingency fund, which covers the estimated cost of major repairs and replacement of common areas. The amount of the self-insurance fund must equal the highest deductible among all the syndicate’s insurance coverages.

In terms of civil liability, individual condo owners are now required to hold civil liability insurance in the amount of at least $1 million for buildings with 12 units or fewer, and $2 million for buildings with 13 or more units. In addition, the syndicate must hold liability insurance that covers directors and officers.

Clarifying the description of private portions

Another change introduced by Bill 141 concerns the description of private portions of the property. The syndicate must now provide a detailed description of the private portions of the building, including the original condition of each unit. This helps distinguish between owner improvements and original features in the event of a claim.

These measures aim to strengthen condo management and provide better protection for co-owners and their investments.

As of September 2023, statistics showed that nearly one in eight homes in Canada is a condo. So, if you are a co-owner or property manager and need assistance with your building, its condition, or its management, contact us. Our condo specialists and partners are here to make your life easier and help you get the most out of every dollar you invest in your condominium.