Access to information and better supervised managers

Sitting at the forefront of co-ownership and the law that governs it, the real estate brokerage industry wants to see the viability of condos in Quebec continue. In this context, Nadine Lindsay, President and CEO of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), presents her views on a possible legislative reform on co-ownership.

(Article published in Condoliaison magazine , spring 2017)

Ms. Lindsay, what do you think are the priority changes to be made as part of this reform?

In particular, access to relevant information and documents during a transaction should be improved. Real estate brokers, as well as other parties involved, should be able to get their hands on this information without difficulty. However, it is often difficult to obtain valid and representative documentation, whether from the selling co-owner or the syndicate of co-owners. The OACIQ therefore hopes that co-owners, buyers and their real estate brokers can have access to complete, up-to-date information that is available in a timely manner.

During the public consultations on co-ownership, which took place in 2012 in Montreal and Quebec City, the OACIQ formulated its recommendations in preparation for a legislative reform on co-ownership. Could you list some of them for us?

We proposed, among other things, that the builder or developer of a co-ownership provide the initial asset management plan of the building to the syndicate of co-owners. And that the latter be required to update it regularly. We also suggested that the builder or developer provide a copy of the certificate of location to the syndicate of co-owners, and that again, this document be required to be updated periodically.

It also seems essential to us that condominium syndicates have a maintenance logbook. In addition, the information recorded in the register should include, in addition to that provided for in the Civil Code of Québec, an explanatory note about the Mandatory Guarantee Plan for New Residential Buildings , if the condominium is covered by this guarantee, as well as a contingency fund study. This register should be easily accessible to co-owners, buyers and their real estate brokers. We also believe that condominium syndicates should be required to complete the DRCOP form (Request for Information from the Condominium Syndicate) when a selling co-owner or their real estate broker requests it. This DRCOP should, among other things, contain financial information so that a buyer can make an informed decision before purchasing an existing condo.

You are also in favor of better supervision of condominium managers.

Yes, because sound management of a building helps increase public confidence, whether during a transaction involving the purchase of a condo or when the buyer becomes the owner. This aspect is essential to the smooth running of a transaction. The OACIQ believes that condominium managers, who are called upon to take part in real estate transactions, should be supervised, so that a code of ethics and ethical services are imposed, among other things.

Real estate brokers are required to comply with the rules imposed by the Real Estate Brokerage Act and the OACIQ, the organization that oversees their activities. Condominium managers should be governed by a similar framework. The OACIQ ensures that the work of real estate and mortgage brokers is done according to the rules of the art. The measures provided for in the Real Estate Brokerage Act , as well as its regulations, aim to ensure that the public does business with competent, honest professionals who are concerned with protecting the interests of the parties involved in a real estate or mortgage transaction.

Without claiming that it is solely responsible for the problems experienced in co-ownerships, the lack of supervision of co-ownership managers nevertheless contributes to maintaining significant shortcomings that are sometimes noted there, for example insufficient or even non-existent contingency funds. Of course, not all co-ownerships are affected by poor governance, but it remains that it will be necessary to look into it to refocus those that are drifting, in order to ensure a promising future for Quebec co-ownerships.

SOURCE: https://www.oaciq.com/fr/articles/acces-a-linformation-et-gestionnaires-mieux-encadres