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Vote reductions at the assembly of co-owners (part 2)

Vote reductions at the assembly of co-owners (part 2)

In the case of a developer /co- owner of a co-ownership of five fractions and more


To prevent that a co-owner who has acted as a developer of a project in co-ownership with five fractions and more can control the assembly of co-owners to his advantage, article 1092 CCQ provides that this developer / co-owner is not entitled, in addition to the voting rights attached to the fraction that serves as his residence, to more than 60% of the total votes of the co-owners at the end of the second and third year of the date of registration of the declaration of co-ownership. Thereafter this number is reduced to 25%.
Under the terms of Article 1093 CCQ : is considered as a "promoter" him/her, who at the time of registration of the declaration of co-ownership, owns at least half of all fractions or his successors, except he/she who acquires in good faith and with the intention of living in it a fraction for a price equal to its market value.
Here is an illustration of this principle:

Image

So, in the example above the promoter having become co-owner can cast the following number of votes:

Until the second anniversary of the publication of the declaration: 80 votes out of 100
From the day after the 2nd anniversary until the 3rd Anniversary: 70 votes out of 100
From the day after the third anniversary and all subsequent years: 35 out of 100

The case of non-payment of common expenses

Under Article 1094 CCQ, any co-owner who, for more than three months has not paid his/her share of the common expenses or his contribution to the emergency fund, is deprived of his right to vote.

The effect of vote reductions

When the votes of a co-owner or former developer are reduced by the application of Articles 1091 or 1092 CCQ, there is a definite effect on the ordinary decisions of the assembly of co-owners which require a simple majority of the votes of the co-owners present or represented at the assembly.

However, when the same reductions apply and when the assembly must vote on a matter requiring the majority in number and in votes, or the topics listed in Articles 1097, 1098 and 1108 CCQ, the total number of votes of the co-owners must be reduced accordingly by applying Article 1099 CCQ, which has the effect of reducing its impact.

In case of doubt in your particular situation, do not hesitate to contact our team of lawyers specializing in property law.

About the author

Me Kevin J. Lebeau, avocat

Diplômé de l'Université McGill (B.A.) et l'Université de Montréal (LL.B.), Me Lebeau est membre du Barreau du Québec depuis 2000.

Depuis 2001, il a exercé en droit immobilier avec concentration en droit de la copropriété dans plusieurs contextes, dont en milieu d'association, en société et en contentieux d'entreprise au sein d'une firme de gestion se spécialisant dans la gestion des copropriétés divise, Gestion Immobilière Ges-Mar Inc. Me Lebeau est également conseiller juridique aux membres d'Avantages Condo.

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