Reserve fund study
EXPERTISE
INSPECTION
Since August 14, 2025, all divided co-ownerships (condominiums) in Quebec must comply with Law 16. The law requires:
- A maintenance logbook prepared by an authorized professional.
- A reserve fund study updated every 5 years, based on this logbook.
- A detailed certificate provided when selling a unit (without it, the notary cannot finalize the transaction).
Condo syndicates have until August 14, 2028, to be fully compliant.
Reserve fund studies conducted between August 14, 2023, and August 14, 2025, by an authorized professional remain valid but must be updated no later than 5 years after their completion.
What is a reserve fund study?
A reserve fund study is an essential document to ensure the long-term sustainability of a condominium. It provides a detailed analysis of the building’s condition, evaluating its components, their remaining lifespan, and the necessary repair or replacement work over a minimum period of 25 years.
Since the implementation of Law 16, only studies carried out by an authorized professional are valid.
The study is based on a valid maintenance logbook, which lists all the building’s components and their required upkeep. It allows the annual contributions to the reserve fund to be calculated according to the professional’s recommendations, ensuring that the syndicate has the necessary funds for future work and remains compliant with the law.
Why is it mandatory?
Law 16 amends Article 1071 of the Civil Code of Quebec. It makes the reserve fund study mandatory to ensure that the fund contains sufficient amounts for major repairs or replacements of the building.
The contribution rate is no longer automatically set at 5% of common expenses: it must now be determined according to the study’s recommendations, based on the building’s actual condition and a 25-year planning horizon.
A syndicate that fails to comply with these requirements faces real risks: unexpected special assessments, disputes among co-owners, delays in unit sales, or even a loss of property value.
Benefits for your condominium
- Fair contributions calculated according to the building’s actual needs
- Cost distribution spread out over several years
- Preservation and increase in property value
- Optimal planning of interventions
- Guaranteed legal compliance if the study is done by an authorized professional
How is the study conducted?
Since August 14, 2025, Law 16 requires that every reserve fund study be based on a valid maintenance logbook.
This means the first step is to establish or update this logbook, prepared by an authorized professional (engineer, architect, professional technologist, chartered appraiser, or qualified CPA).
Once the logbook is complete, the reserve fund study can be carried out in the following steps:
- Detailed analysis of the maintenance logbook to identify all components of the building, their condition, remaining service life, and recommended maintenance cycles.
- Additional visual inspection of the building and common areas to validate and supplement the logbook data.
- Assessment of the components’ lifespan and cost estimates for repairs or replacements over at least 25 years.
- Calculation of the annual contributions required to maintain the reserve fund at the necessary level.
- Financial recommendations and tailored planning scenarios for the condominium.
This process ensures that the study complies with Law 16 regulations and accurately reflects the building’s real needs.
Benefits for your condominium
- Fair contributions calculated according to the building’s actual needs
- Cost distribution spread out over several years
- Preservation and increase in property value
- Optimal planning of interventions
- Guaranteed legal compliance if the study is done by an authorized professional
Deadlines and compliance
- Effective date: August 14, 2025
- Compliance deadline: August 14, 2028
- Valid studies: those carried out between August 14, 2023, and August 14, 2025, by an authorized professional (but they must be renewed no later than 5 years after completion)
If the reserve fund shows a deficit, the recovery plan must follow the study’s recommendations. There is no longer a universal 10-year deadline; each plan must be adapted to the specific situation of the condominium.
What’s included in our reserve fund study?
Our study covers all the elements required by Law 16 regulations to ensure legal compliance and the sustainability of the fund. It includes:
- Complete visual inspection of the common areas
- Assessment of the condition of components and cost estimates for repairs or replacements over 25 years
- Analysis of mechanical, electrical, and other building systems, with cost estimates and expected lifespan
- Financial analysis of the existing reserve fund and projection of future needs
- Recommendations for a tailored and multi-year maintenance program
- Contribution scenarios to ensure the fund remains sufficient, including a recovery plan if needed
This approach provides the condo syndicate with a clear, legally compliant roadmap to anticipate future work and fairly distribute costs while protecting the building’s value.
How much does a reserve fund study cost?
The price depends on the building’s size, complexity, age, type of co-ownership, and requested timeline.
It’s impossible to provide a standard rate without reviewing the building, which is why Genispec offers a free, no-obligation quote. Contact us today to get a personalized estimate and ensure your condo meets the legal deadlines.
Why choose Genispec for your reserve fund study?
Unlike other firms, Genispec is composed of building engineers, all members of the Ordre des ingénieurs du Québec (OIQ). Our engineers are qualified to answer your questions and assist with building inspections, whether for a reserve fund study or a façade inspection.
We specialize in the inspection of commercial and industrial buildings. Our services are available in:
- Greater Montreal area (Hampstead, Saint-Laurent, Mont-Royal, Laval, Longueuil, Brossard, West Island, Kirkland)
- Quebec City region
- Gatineau / Outaouais region
- Everywhere else in Quebec
Contact us today for any questions, to learn more about our inspection services, or to request a free quote and ensure your condominium’s compliance with Law 16.