Over the past few days, the Montreal area has experienced rapid and significant snow melt, a typical phenomenon at the end of winter when spring sets in.
This situation is even more critical this year given the significant amount of snow received—no less than 111 inches in Montreal—and the rain expected in the very short term, particularly on March 10, 11, and 12. The volume of new precipitation, combined with the accelerated melting of the snow cover, is putting considerable pressure on the natural drainage of the land.
For condominium administrators, this period is a key time for observation and intervention in order to limit risks to the building, infrastructure, and finances of the syndicate.
The slope of the land around a building is not just an aesthetic detail: it is the first line of defense against water infiltration.
An inadequate or slumped slope can:
With the repeated freeze-thaw cycles observed in the Quebec spring, these problems quickly worsen.
Administrators can make some simple visual observations during periods of snowmelt and rain:
Around the building
Inside
These signs are often interpreted as isolated problems, when in fact they frequently indicate a slope that is deficient or has deteriorated over time.
In the short and medium term
An often-underestimated risk concerns water accumulations that are not drained and freeze during cold spells in the spring:
These repeated freeze/thaw cycles are particularly damaging in Quebec and contribute to major long-term maintenance costs.
Leveling or correcting the slope of the land:
In many cases, simply correcting the slope around the first few meters of the building is enough to significantly reduce the risk of infiltration.
Spring is the ideal time to:
Acting now means protecting the building, the association’s finances, and the peace of mind of the co-owners.
Samanta Pilon-Langlois
Director of Operations
Picture this: you are buying a condo. According to the certificate you received from the condominium syndicate, the syndicate’s financial statements show a contingency fund that is in line with what is provided for in the contingency fund study. Everything seems fine.
But some major work has been delayed by the syndicate, and the costs have never been reintegrated into the minimum balance required for the contingency fund, even though the current study balance considers that this planned work has been completed. Which is completely false!
The result? You could underestimate your future contributions or special assessments.
In the province of Quebec, the syndicate must complete an annual certification for the contingency fund, indicating:
In practice, some management firms simply report the figures from the study without adjusting the recommended balance to consider delayed or uncompleted work.
Their reasoning: “it’s not our responsibility” since the question asked by the Regulation does not require us to do so. On paper, everything is correct. But in reality, and for the potential buyer, the information is incomplete.
In Quebec, the annual financial statements of a condominium syndicate must provide co-owners and potential buyers with a true and fair view of the building’s financial situation. Among the key information, the contingency fund plays a central role, as it reflects the syndicate’s ability to finance major maintenance and repair work on the building.
Since July 2025, with the coming into force of «Regulation PL-16 implementing sections of the Civil Code of Québec resulting from the condominium reform brought about by Bill 16 (PL-16), we can expect to see a particularly important note to this effect in the financial statements. Unfortunately, this practice is currently slow to emerge.
This is where the auditor or external accountant becomes indispensable. Even if the contingency fund deficit does not constitute a liability to a third party, it remains relevant financial information, since the syndicate will have to finance this work in the foreseeable future. Failure to report this could lead to an underestimation of future cash requirements and potentially mislead a buyer.
By adding an explanatory note on the contingency fund adjusted for work not performed, the auditor can, in particular:
As an independent third party, the auditor is responsible for ensuring that the financial statements present complete and relevant information for users. Adding such a note therefore helps to enhance the transparency and credibility of the financial statements.
Without this information, neither the syndicate nor the potential buyer has a complete picture of the building’s financial situation, which can lead to decisions based on incomplete information.
In this case, it becomes even more important to act with caution and include this information directly in the syndicate’s certification. This is why we do it this way for our clients at SolutionCondo. Here is an example of the wording we use for our certifications.
2.2. Amount available in the contingency fund at the beginning of the current year recommended by the contingency fund study
According to the most recent contingency fund study, attached as an appendix, and based on the various financing scenarios proposed by the professional who conducted the study, the minimum amount that must be available in the contingency fund is $XXX at 2026-01-01.
It should be noted that the prospective buyer and their broker must carefully assess the potential impact on condo fees of the syndicate’s decision to contribute to its contingency fund according to the scenario proposed on page 48.
However, several projects have had to be delayed, and therefore costs of Σ $YYY will have to be added to the minimum balance of the contingency fund for the following projects:
We therefore consider that the contingency fund should be at least $ZZZ* (i.e., XXX + Σ $YYY) as of January 1, 2026.
* Considering inflation and other factors that could affect the costs of completing these delayed works, please note that the future costs incurred may differ from those indicated in the contingency fund study and used above to adjust the minimum balance.
Regardless of how this information is presented, one thing is essential: the prospective buyer must be informed of the shortfall in the contingency fund.
A prudent syndicate will add the required information to its certificate on its own initiative to avoid criticism.
However, we believe that the auditor should also do so as an independent professional, failing which the issue of professional liability could potentially arise.
In a context where major work on a building can cost hundreds of thousands or even millions of dollars, transparency about the actual state of the contingency fund is not an accounting detail: it is essential information for any informed purchase decision.
Elise Beauchesne, CPA, Adm.A
President and Founding partner
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