Practical Guide - Certificate Attesting to the Condition of the Immovable Held in Co-ownership (CACI by Direction RGCQ

PRACTICAL GUIDE - CERTIFICATE ATTESTING TO THE CONDITION OF THE IMMOVABLE HELD IN COOWNERSHIP (CACI)

This practical guide provides clear and detailed instructions for completing the Certificate Attesting to the Condition of the Immovable held in co-ownership (CACI) according to the model established by the RGCQ.

The guide is for the use of RGCQ members only and is not to be distributed or otherwise used in any way.

1. Identification

1.1. Identification of the syndicate

Name of the syndicate: Enter the exact name of the syndicate

Full address of the domicile: Enter the full address of the syndicate (building number, unit number, lane name, city, province and postal code). This address must be the same as the one listed at the Registraire des entreprises du Québec.

Québec Enterprise Number (NEQ): Enter the 10-digit NEQ. If the syndicate is not registered with the Registraire des entreprises du Québec (REQ), check the "Unregistered syndicate" box.

1.2. Identification of the co-owner

Name of applicant for the certificate: Enter the full name of the person who made the request to receive the certificate. This can be the co-owner or his or her agent (e.g., a real estate broker).

Date of request for the certificate: Enter the date (day, month and year) of receipt of the application by the applicant co-owner by the syndicate.

Name of unit owner: Provide the full name of the unit owner(s) (primary and accessory). If the ownership of the accessory portions differs from that of the main portion, this particularity must be specified in the "Additional Information" section (for example: Mr. X. and Mrs. T. are co-owners of the main private portion, while Mrs. T. is the sole owner of the accessory portions).

1.3. Identification of the main unit

Full unit address: Enter the full address of the main unit (building number, unit number, traffic lane name, city, province and postal code).

1.4. Identification of accessory units

Parking space number: Indicate the number(s) of the parking spaces when they are units.

If the requesting co-owner does not have a parking space in a private portion, please check the "Not applicable" box.

If the parking space is not numbered, enter the lot number.

Storage number: Indicate the storage space number(s) when they are units.

If the requesting co-owner does not have storage space in the private portion, please check the "Not applicable" box.

If the storage space is not numbered, enter the lot number.

Other: If the applicant co-owner owns another type of accessory unit, please specify the type and the corresponding number(s).

1.5. Identification of restricted common portions

Parking space number: Indicate the number(s) of the parking spaces when they are restricted common portions and are used exclusively by the applicant co-owner.

Indicate if the syndicate has a parking allocation plan by checking the appropriate box.

If the requesting co-owner does not have a restricted parking space in the common area, please check the "Not applicable" box.

Storage space number: Indicate the number(s) of the storage spaces when they are common areas for restricted use and of which the applicant co-owner has exclusive use.

Indicate if the syndicate has a storage allocation plan by checking the appropriate box.

If the requesting co-owner does not have storage space in the common area for restricted use, please check the "Not applicable" box.

Other: If the applicant co-owner has exclusive use of another type of common portion for restricted use, specify the type and the corresponding number(s). Restricted common portions that are attached to a unit (e.g., balcony or windows) do not need to be mentioned.

2. Financial Information

2.1. Maintenance logbook

Indicate whether the syndicate has had a maintenance logbook prepared by a member of the Ordre des ingénieurs du Québec, the Ordre des évaluateurs agréés du Québec, the Ordre des architectes du Québec or the Ordre des technologues professionnels du Québec and, if so, specify the date on which the maintenance logbook was produced.

2.2.

Contingency fund study

Indicate whether the syndicate has had a contingency fund study carried out by a member of the Ordre des ingénieurs du Québec, the Ordre des évaluateurs agréés du Québec, the Ordre des architectes du Québec, the Ordre des technologues professionnels du Québec or the Ordre des comptables professionnels agréés du Québec and, if so, specify the date on which the study was produced.

2.3.

Syndicate tax returns

Indicate whether the syndicate's tax returns have been filed and are up to date.

2.4.

Contingency Fund

Total amount of contingency fund as of the date of certification: Indicate the amount of the net surplus or deficit of the contingency fund as of the date of the certificate. This information can be found in the financial statements (internal or audited) in the statement of the syndicate's financial position (balance sheet). The amount can also be calculated by subtracting the liabilities from the assets.

If the date of the financial statements differs from the date of the certificate, indicate this in the "Comments" section.

(Art. 10 para. 1. of the Rules of Procedure)

Cash available in the contingency fund: Indicate the amount of cash that is actually available in the contingency fund.

Cash includes cash, short-term and long-term investments, and interest receivable on these investments (when material). Bank loans must be subtracted from this calculation. Ignoring interfunds.

Interfunds receivable or payable should be noted in the "Comments" section.

Recommended amount based on the contingency fund study at the beginning of the current year: Enter, based on the contingency fund study, the recommended amount to be in the

contingency fund at the beginning of the current fiscal year. If the contingency fund study includes several scenarios, indicate in the comments the scenario chosen by the board of directors.

(Art. 10 para. 1. of the Rules of Procedure)

2.5. Contingency fund financial results

Results for the last 3 fiscal years: Enter, for the last 3 fiscal years, the end date of the fiscal year (day, month, year) as well as the revenues, expenses and result (surplus or deficit) of the contingency fund. This information is included in the syndicate's financial statements.

Current year contingency fund estimate: Record revenues, expenses, and surplus/deficit according to the current year's contingency fund budget. If, at the time of completing this certificate, the budget for the current year has not yet been adopted by the board of directors, indicate the amounts for the budget of the previous fiscal year and specify in the comments that these are the amounts of the previous year.

If a special budget has been adopted by the board of directors, please indicate this in the "Comments" section with the amount of the budget.

2.6.

Operating fund

Total amount of cash available to pay current expenses as of the date of the certificate: Indicate the total amount of cash available to pay the current operating expenses of the condominium as of the date of the certificate.

Cash includes cash, including deposits and cheques outstanding, as well as short-term liquid investments. Bank loans must be subtracted from this calculation. Accounts receivable, regardless of their nature, must be excluded from liquidity.

In order to provide a complete and accurate picture of the syndicate's financial position, the existence of large or abnormally large accounts payable, inter-funds, as well as significant amounts of common expenses receivable, should be indicated in the "Comments" section.

(Art. 10 para. 3. of the Rules of Procedure)

2.7.

Operating fund financial results

Results for the last 3 fiscal years: Enter, for the last 3 fiscal years, the end date of the fiscal year (day, month, year) as well as the revenues, expenses and result (surplus or deficit) of the operating fund. This information is included in the syndicate's financial statements.

Current year forecast budget for the operating fund: Enter revenues, expenses, and surplus/deficit according to the current year's estimated budget for the Operating Fund. If, at the time of completing this certificate, the budget for the current year has not yet been adopted by the board of directors, indicate the amounts for the budget of the previous fiscal year and specify in the comments that these are the amounts of the previous year.

If a special budget has been adopted by the board of directors, please indicate this in the "Comments" section with the amount of the budget.

2.8. Common expenses of the co-ownership

Total amounts of contributions to common expenses for the last 3 fiscal years: Enter, for the last 3 fiscal years, the following information:

• Fiscal year end date: Enter the end date of the fiscal year (day, month, year).

• Required: Enter the total amount of contributions to common expenses required by the board of directors for each of these years, including special contributions.

• Paid: Enter the total amount of expenses actually paid during the fiscal year, including payments made in settlement of balances relating to previous years.

• Difference: Enter the discrepancy between the amounts required and the amounts actually collected.

Information on common expenses required and paid can be found in the syndicate's financial statements. For a phased co-ownership, it is important to differentiate between the common charges required by the initial syndicate and the charges required by the concomitant syndicates. (Art. 10 para. 2. of the Rules of Procedure)

2.9. Self-insurance fund financial results

Results for the last 3 fiscal years: Enter, for the last 3 fiscal years, the end date of the fiscal year (day, month, year) as well as the revenues, expenses and result (surplus or deficit) of the self-insurance fund. This information is included in the syndicate's financial statements.

Current year forecast budget for the self-insurance fund: Enter the revenues, expenses and surplus/deficit according to the current year's self-insurance fund budget. If, at the time of completing this certificate, the budget for the current year has not yet been adopted by the board of directors, indicate the amounts for the budget of the previous fiscal year and specify in the comments that these are the amounts of the previous year.

If a special budget has been adopted by the board of directors, please indicate this in the "Comments" section with the amount of the budget.

2.10. Financial results for all funds

Annual results for the last 3 fiscal years: Enter, for the last 3 fiscal years, the end date of the fiscal year (day, month, year) as well as the revenues, expenses and result (surplus or deficit) of all the syndicate's funds. This information is included in the syndicate's financial statements. (Art. 10 para. 4. of the Rules of Procedure)

Current year budget: Record revenues, expenditures, and surplus/deficit according to the current year's budget estimate for all funds. If, at the time of completing this certificate, the budget for the current year has not yet been adopted by the board of directors, indicate the amounts for the budget of the previous fiscal year and specify in the comments that these are the amounts of the previous year.

If a special budget has been adopted by the board of directors, please indicate this in the "Comments" section with the amount of the budget.

(Art. 10 para. 5. of the Rules of Procedure)

2.11. Additional comments

Include in this section any additional comments deemed relevant to the financial situation of the syndicate.

3. Syndicate Insurance

3.1. Insurance coverage held by the syndicate

For each of the insurance policies listed, indicate whether the syndicate has in fact taken out such coverage. If applicable, enter the amount of coverage.

(Art. 10 para. 6. of the Rules of Procedure) (1073 C.C.Q.)

3.2. Valuation of the reconstruction value of the building

Specify whether the syndicate had the reconstruction value of the building established by a member of the Ordre des évaluateurs agréés du Québec. If applicable, indicate the date of the report and the reconstruction value established in this report.

3.3. Reconstruction value of the building

Enter the reconstruction value of the building indicated in the current insurance contract. This information is included in the insurance policy.

3.4. Amount of the highest deductible provided by the syndicate's insurance

Indicate the amount of the highest deductible provided for by the insurance taken out by the syndicate. This information is included in the insurance policy.

(Art. 10 para. 7. of the Rules of Procedure)

3.5. Amount of the highest deductible provided by the syndicate's insurance excluding earthquakes and floods

Indicate the amount of the highest deductible provided for by the insurance company taken out by the syndicate, excluding the one for earthquakes and floods. This information is included in the insurance policy.

(s. 2 of the Regulation Establishing Various Measures in Respect of Matters of insurance for divided co-ownerships)

3.6. Total amount of the self-insurance fund as of the date of the certificate

Indicate the amount of the net surplus or deficit of the self-insurance fund as of the date of the certificate. This information can be found in the financial statements (internal or audited) in the statement of the syndicate's financial position (balance sheet). The amount can also be calculated by subtracting the liabilities from the assets.

If the date of the financial statements differs from the date of the certificate, indicate this in the "Comments" section.

(Art. 10 para. 7. of the Rules of Procedure)

3.7. Cash in the self-insurance fund as of the date of the certificate

Record, as of the date of the certificate, the cash actually available, i.e., cash, short- and longterm investments, and interest receivable on these investments (if material). However, exclude inter-fund owings as well as amounts receivable from an insurer whose payment has not been confirmed.

Inter-fund amounts and amounts receivable from an insurer whose payment is not confirmed should be mentioned in the "Comments" section.

3.8. Description of the private portions

Indicate whether the syndicate has a description of the units that is sufficiently precise for the improvements made by the co-owners to be identifiable, in accordance with article 1070 of the Civil Code of Québec.

(1070 C.C.Q.)

3.9. Losses that have affected the common areas in the last 5 years

Briefly describe each of the losses that have affected the common elements in the last 5 years, whether or not they have been the subject of an insurance claim with the syndicate's insurer.

(Art. 10 (8) (b)). of the regulations)

3.10. Losses that have affected the unit(s) in the last 5 years

Briefly describe each of the losses that have affected the plaintiff co-owner's private portions (main and accessory) over the past 5 years, whether or not they have been the subject of a claim with the syndicate's insurer or the co-owner. If so, specify whether the loss affected the main unit or one of the accessory units.

(Art. 10 (8) (b)). of the regulations)

4. Building Component Information

4.1. Inspection and expertise carried out over the last 5 years

Briefly describe the inspections and expertise carried out at the initiative of the syndicate, over the past 5 years, which have focused on the general condition of the building or one of its main components (common portions and private portions).

(Art. 10 para. 8 a). of the regulations)

4.2. Major repairs and replacements completed in the last 5 years

Briefly describe the major repairs and replacements carried out on the common areas over the past 5 years, indicating for each the date of completion of the work (month and year) as well as their cost.

(Art. 10 para. 8 c). of the regulations)

4.3. Major repairs and replacements planned over the next 10 years

Briefly describe the major repairs and replacements planned on the common elements over the next 10 years, indicating for each the expected start date of the work (year) and the estimated cost.

(Art. 10 (8) (d)). of the regulations)

4.4. Transformation, improvement or expansion of common elements

Indicate whether the meeting of co-owners has adopted a resolution authorizing the execution of future transformation, improvement or expansion of the common elements. If applicable, specify the expected start date of the work (month and year) as well as the estimated cost.

(1097 C.C.Q.)

5. Legal Framework and Aspects

5.1. Changes made to the declaration of co-ownership in the last 3 years

Briefly describe the changes made to the declaration of co-ownership over the past 3 years, whether they concern the deed of incorporation, the regulations of the immovable or the description of the fractions, and indicate for each of them, their effective date.

(Art. 10 (8) (f)). of the regulations)

5.2. Court proceedings, arbitration and mediation

Indicate whether the syndicate is a party to an ongoing dispute that is the subject of legal proceedings, arbitration or mediation. Other disputes do not have to be mentioned (for example, the receipt or sending of a formal notice, or non-judicial disputes with certain co-owners). If so, provide a brief description.

(Art. 10 para. 8 e). of the regulations)

6. Information About the Unit

6.1.

Common expenses for the current fiscal year

For this section, provide information for the current fiscal year. If, at the time of completing this certificate, the budget for the current year has not yet been adopted by the board of directors, indicate the expenses of the previous fiscal year and specify in the comments that they are the amounts of the previous year.

Annual common expenses for the main unit: Indicate the amount of the annual common expenses for the Main Unit for the current fiscal year. If the application is only for an accessory unit, such as a parking space or storage space, leave this section blank.

Do not include maintenance, routine repairs, major repairs and replacement of restricted common elements, which will be detailed below.

Annual common expenses amount for accessory units: Indicate the amount of annual common expenses for all accessory units (e.g., parking space, storage space) for the current fiscal year. If there is more than one accessory private portion, detail the charges individually.

Amount of annual common expenses for the maintenance and ongoing repairs of the restricted common elements: Indicate the amount of the annual common expenses for the maintenance and routine repairs of the restricted common elements of which the applicant coowner has exclusive use (e.g., snow removal costs for parking lots in the restricted common elements) for the current fiscal year.

Amount of annual common expenses for major repairs and replacement of restricted common elements: Indicate the amount of annual common expenses for major repairs and replacement of restricted common elements of which the applicant co-owner has exclusive use for the current fiscal year. It should be noted that the declaration of co-ownership must provide for a specific provision to this effect in order to be able to charge such charges to the co-owners.

6.2.

Arrears

Indicate whether any common expenses are owed by the requesting co-owner and, if so, indicate the amount (for the main unit, accessory units and restricted common elements). Do not include

other amounts owed by the requesting co-owner that are not common expenses, such as penalties, telecommunications service subscription fees, etc. If applicable, indicate the amount of the arrears.

(1069 C.C.Q.)

6.3. Contributions adopted but not yet due

Indicate whether special assessments have been adopted by the board of directors but are not yet due. If applicable, specify the amount of the portion of this contribution attributable to the applicant co-owner, both for his main private portion and for his accessory private portions and the restricted common portions of which he has exclusive use.

6.4. Notice of contravention of the declaration of co-ownership

Indicate whether the syndicate has sent the applicant co-owner notices of contravention of the declaration of co-ownership that may have an impact on a potential buyer. If applicable, briefly describe the purpose of these notices and specify their date of issue. Notices of contravention that are irrelevant to a potential buyer do not have to be mentioned.

6.5. Unauthorized work by the co-owner

Indicate whether the applicant co-owner has carried out work in his or her private portions or on the common elements without having obtained the prior authorization of the board of directors or the meeting of co-owners, when this approval was required. If applicable, briefly describe the work involved.

Also indicate the unauthorized work carried out by the authors of the requesting co-owner.

7. Additional Information

You may use this section to provide any additional information that could not be entered in the space provided. To facilitate identification, please indicate the number of the question to which the additional information relates. You can also use this section to enter additional information to provide certain clarifications or to draw a more complete picture of the co-ownership.

8. Confidentiality Clause

The certificate on the state of the co-ownership is an official and sensitive document, essential during a transaction in divided co-ownership. It brings together, in a certified manner, financial, legal and administrative information of the syndicate (contingency funds, expenses, litigation, major work, etc.), which gives it a much greater scope than simple internal communications. Its distribution is strictly reserved for those involved in the transaction (buyer, notary, brokers). In order to protect the confidential data of the co-owners and the co-ownership, the CACI prepared by the RGCQ contains a confidentiality clause that binds both the seller and the buyer, thus ensuring a balance between the right to information and the protection of collective interests.

8.1. Signing the certificate

The person signing the CACI must be an authorized person. The declaration of co-ownership should specify who is authorized to sign. Failing this, a resolution of the board of directors may appoint a director, a co-owner or a manager.

The signature can be affixed either by hand to a paper document or electronically. In both cases, the signature is deemed valid and produces the same legal effects.

The person signing the CACI must indicate their title (e.g., administrator, manager, etc.)

The CACI must be dated, moreover the regulations provide that several pieces of information must be completed on the date of the certificate.

Good to know!

The rigorous keeping of the co-ownership registers facilitates and accelerates the preparation of the CACI

When information is missing, it is recommended to add an explanatory note rather than leaving a field blank.

In accordance with article 1068.1 of the Civil Code of Québec, the syndicate must give the CACI to the co-owner who requests it within fifteen (15) days.

For traceability and accountability purposes, the syndicate must record in a register each certificate issued, specifying the date of delivery. A signed and dated copy of the certificate must be kept in the register, as well as a copy of the application for a certificate submitted by the coowner or his representative, accompanied, if applicable, by a copy of the mandate.

Finally, if the space provided in the CACI is insufficient, an annex should be used to include the additional information.

In the case of a phased co-ownership, the co-owners will have to submit an CACI application to both the initial syndicate and the concomitant syndicate in order to obtain a complete picture of the situation.

The board of directors may require an administrative fee from the applicant co-owner to complete the CACI.

Practical Guide - Certificate Attesting to the Condition of the Immovable Held in Co-ownership (CACI