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Monday January 6 2025

Syndicate of co-ownership: convenience fees and the Consumer Protection Act

The Consumer Protection Act provides various safeguards for consumers, including a prohibition on merchants charging additional fees to customers paying with debit or credit cards.

The syndicate of co-ownership is not a merchant

The syndicate of co-ownership is a non-profit organization whose main purpose is to preserve the immovable, maintain and administer the common portions and safeguard the rights of the co-owners, strictly for the benefit of the co-owners.

Unlike a merchant, the syndicate of co-ownership does not engage in any commercial activity intended to generate a profit. At most, it collects sums of money from the co-owners to meet the expenses it incurs in fulfilling its obligations to the co-ownership.

Also, since the syndicate of co-ownership is not a merchant, the Consumer Protection Act does not apply to transactions between the syndicate and the co-owner. In fact, the Act specifies the following:

Article 2:

The present law applies to any contract concluded between a consumer and a merchant in the course of the activities of his business and having as its object a good or a service.

Payment methods for common charges and UpperBee Pay

In addition to traditional payment methods, the syndicate can offer other, simpler and more efficient payment solutions, such as payment by direct debit from a current account, bank transfer via online banking or payment by credit card. (See also: https://bit.ly/4ieeUPA)

This is a non-mandatory logistical choice, enabling co-owners to pay common charges more flexibly and efficiently.

Why do co-ownerships charge transaction fees?

These so-called « convenience » fees, collected by the syndicate from the co-owner, represent the costs the syndicate incurs with its service provider during a credit card transaction.

This being said, although it is legal, it is recommended that co-owners be well informed of the costs associated with payment by credit card, to avoid any confusion. Transparency is essential to maintaining a healthy and trusting relationship within the co-ownership.

At SolutionCondo, the use of UpperBee software facilitates this transparency by presenting fees in a clear and comprehensible manner to co-owners.

Conclusion

In conclusion, although credit card transaction fees are prohibited for merchants, this prohibition does not apply to syndicates of co-ownership, which are not considered merchants under the Act.

A syndicate may therefore charge these fees for payments related to condominium fees.

Anne-Claire Pinel de Grandchamp
Head Accountant

and

Me Sylvain Dufresne, Attorney
Director of Legal Affairs