Condo Owners Are Struggling With Their Maintenance Logbooks

Condo owners in duplexes, triplexes, and fiveplexes are discovering that they have new obligations resulting from a recent law. And they are not taking it well.

For the past few weeks, my inbox has been filling up with messages from desperate condo owners. A law that came into effect last summer requires all condo associations to prepare a maintenance logbook for their building, regardless of its size.

The maintenance logbook is prepared by a technologist, architect, or engineer. After inspecting the building, it lists the work that needs to be completed over the next decade to ensure its structural integrity.

A good maintenance logbook also specifies the costs and timelines for each project, as well as the required reserve fund amount that must be available to complete the work at the appropriate time.

If there is not enough money in the reserve fund, the logbook outlines the amount of special assessments required from each condo owner over the coming years.

For many of them, it comes as a shock.

They suddenly have to find hundreds, thousands, or even tens of thousands of dollars. This is because reserve funds in many small condo buildings are extremely limited, and often nonexistent.

Poorly Managed

“A significant number of small condo buildings are poorly managed,” comments Yves Joli-Coeur, a lawyer specializing in condominium law. “They have been run informally for years, with as few repairs as possible and very little money contributed to the reserve fund. Today, the building is in terrible condition.”

I have a reader who complains about having to empty their reserve fund to pay the $2,500 maintenance logbook bill.

Me. Joli-Coeur cites numerous examples of desperate condo owners who contact him: the reserve fund is not sufficient to repair the roof, the insurer withdraws coverage after repeated claims, and lenders refuse to finance potential buyers.

“Some condo owners know very little about real estate,” the lawyer continues. “They do not realize that windows need to be regularly sealed, that water heaters must be replaced every ten years, or that key components such as the roof and foundation need to be inspected. Then they suddenly learn that they are required to create a maintenance logbook. They are shocked and overwhelmed.”

All Types of Condominiums

The new law applies to all types of condominiums, even individual homes built under a condominium structure where the association only manages the lawn, garages, and storage units. Because if one owner neglects the maintenance of their private portion, all the others could risk losing their insurance coverage!

“It’s simple: without a maintenance logbook, you cannot remain in a condominium,” concludes Yves Joli-Coeur.

Preventive Advice

• Plan for between $2,000 and $8,000 and several weeks to complete a maintenance logbook.
• Every dollar invested in maintenance can save $4 in emergency repairs later, according to various sources.
• For advice, visit CondoLegal.com.

Article translated from this Journal de Montréal article.