Everything condominium owners need to know about the new legal requirements under Bill 16

When it comes to the financial management of condominiums, the reserve fund study often raises many questions.

With the implementation of Bill 16 in August 2025, the obligations are now clear — and apply to all condominiums across Quebec.

To help you better understand these new requirements, we answer below the five most common questions that condominium syndicates and co-owners have about the reserve fund and its mandatory study.

 

1. Is a reserve fund mandatory?

Yes. Every condominium syndicate must create and maintain a reserve fund to cover major repairs and replacement of common area components.

Under the Bill 16 regulation, which came into effect on August 14, 2025, all condominiums are now required to have a reserve fund based on a compliant study conducted by a qualified professional (engineer, architect, professional technologist, CPA, or chartered appraiser).

 

2. Is the reserve fund study already mandatory?

Yes. Since August 14, 2025, the obligation is official.
All condominiums must complete a compliant reserve fund study and update it according to the standards established by Bill 16.
Syndicates have a three-year grace period — until August 14, 2028 — to comply with this requirement, and must also maintain an up-to-date maintenance booklet.

 

3. Why shouldn’t you wait until the last minute?

Delaying your reserve fund study can have serious financial and practical consequences. Here’s why it’s crucial to act early:

  1. Insurance issues and higher premiums
    Insurers are increasingly requesting proof of financial health. Without an adequate fund, insurance becomes expensive — or may even be denied.
  2. No funds for major repairs
    Without proper planning, condominiums may face large special assessments when major work is required.
  3. Lost opportunity to grow your reserve
    A well-managed fund generates interest over time. Waiting means losing this financial advantage.
  4. Generational unfairness between co-owners
    Without proactive management, some owners benefit from the property without contributing fairly to future repairs.
  5. Lack of preventive maintenance
    An insufficient fund often leads to delayed maintenance, increasing repair costs and reducing the building’s value.
  6. Difficulty selling units
    Buyers and lenders now require proof of compliance. A condominium without a valid study loses value and becomes harder to sell.

 

4. If I complete the study before the regulation takes effect, will it be valid?

Yes — as long as it was completed between August 14, 2023, and August 14, 2025, and signed by an authorized professional (engineer, architect, technologist, CPA, or chartered appraiser) following the required standards.
However, studies completed before August 14, 2023 are not valid and must be redone to meet the new requirements.

 

5. My reserve fund study was done by another firm — is it still valid?

If the reserve fund study was done before October 1, 2022, then no.
If the reserve fund study was done after October 1, 2022, it will depend on two criteria:

  1. The date of adoption of the regulation — only studies completed within two years prior to the regulation coming into force will be accepted.
  2. The professional who conducted the study — only professionals who are members of one of the professional orders recognized by the regulation are accepted.

In summary:

  • If it was completed before August 14, 2023 → No, it will not be recognized and will need to be redone.
  • If it was completed between August 14, 2023, and August 14, 2025 → Yes, if it is signed by a professional who is a member of one of the recognized orders and complies with the regulation.
  • If it was completed after August 14, 2025 → It must comply with Bill 16 and be completed by a professional who is a member of one of the recognized professional orders.

 

The reserve fund study is not only a legal obligation but also a financial planning tool that protects the long-term sustainability of your condominium. Acting early helps avoid costly repairs, insurance issues, and financial strain — ensuring a fair and stable future for all co-owners.

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