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Monday November 3 2025

SYNDICATE ATTESTATION: ANSWERING “TRICK QUESTIONS” CORRECTLY

Completing the syndicate attestation requires organization and attention to detail. It is also important to keep in mind that the purpose of the attestation is to provide information to a potential buyer to help them make an informed decision about purchasing a condo in the building.

Therefore, depending on the reality of your syndicate, some questions may be answered incompletely in order to give a true picture of your syndicate’s situation.

Let’s take a look at the questions that are most likely to be problematic:

#1 AMOUNT AVAILABLE IN THE CONTINGENCY FUND AT THE BEGINNING OF THE CURRENT YEAR AS RECOMMENDED BY THE CONTINGENCY FUND STUDY

Two errors can occur with this question:

1- Using the wrong line in the table to determine the opening balance.

A fiscal year ending on June 30, 2026 means that you have to look at line 2026 when looking for the opening balance because, even though we are still in 2025, the fiscal year is named after the year of the last month of its fiscal year, so in this example we are talking about fiscal year 2026.

Some contingency fund studies only show closing balances in their tables. If this is the case, in this example, the closing balance for fiscal year 2025 will also represent the opening balance for fiscal year 2026.

2- Do not adjust the balance of the contingency fund based on work that has not been carried out.

If your contingency fund study dates from 2022 and we are currently in your 2026 financial year ending June 30, 2026, then your balance as of July 1, 2025 must be adjusted for work that was not carried out between 2022 and July 1, 2025 in order to answer the question adequately.

You could therefore add a note such as the following after indicating the contingency fund balance found in the study:

“However, several projects had to be delayed and therefore costs of $XX will have to be added to the contingency fund balance for the projects listed below:  

We therefore consider that the contingency fund should be at least $XX* as of YYYY-MM-DD.

* Considering inflation and other factors that could affect the costs of completing this delayed work, please note that the original estimated costs may differ from those indicated in the contingency fund study and used above to adjust the minimum balance. “

#2 LITIGATION(S) SUBJECT TO COURT PROCEEDINGS

1- Completeness of ongoing litigation

There is no need to include formal notices here, as these are not subject to court proceedings. However, claims that you have had to take to court must be included.

Disputes must include both disputes against the syndicate and those initiated by the syndicate.

2- What about potential disputes?

What is tricky for a syndicate are potential disputes that it is aware of and that could result in legal action on its part, such as cases involving defects in new buildings that are not covered by the Residential Construction Warranty (GCR) and often require the services of a lawyer.

The syndicate does not normally have to declare a potential dispute (e.g., those arising from a formal notice it has received), as it has not yet been filed in court.

However, in the case of the deficiencies, we believe that if you are considering legal action against your developer and have already hired a lawyer to apply pressure, you should seriously consider including a sentence in your statement explaining where you stand in this matter, which could make the reader aware of the risks ahead. Although not mandatory, this could avoid friction with potential buyers and help maintain harmony if you eventually have to take the matter to court.

#3 MAJOR REPAIRS AND REPLACEMENTS PLANNED FOR COMMON AREAS, AND THEIR ESTIMATED COST (FOR THE NEXT TEN (10) YEARS)

On this issue, you can refer to your contingency fund study, which contains this information with a standard sentence such as:

“The board of directors has commissioned a contingency fund study report that will provide you with this information. The document is attached to this attestation. The syndicate relies on this report to guide it in the work to be carried out on the building.”

However, if the syndicate is in possession of bids or information on major work to be carried out that is more significant than what is provided for in the study, or on work that will have to be done in connection with deficiencies, for example (major work, although not subject to the contingency fund), then the syndicate should declare them. A sentence such as the following might be appropriate:

“That said, the syndicate will have to carry out the following repairs or major work in the coming years in connection with deficiencies (explain the source of funding, i.e., special assessment, compensation received from the developer, or costs to be included in a lawsuit against the developer):

If you have any other questions that are giving you headaches when filling out your certificates, feel free to let us know in the comments and we can add to this blog post.

Élise Beauchesne, CPA, Adm.A
President and CEO