Tenants and franchises: An obstacle course for condominium syndicates

Managing claims in Quebec condominiums presents major challenges, particularly when it comes to recovering insurance deductibles. Two recent rulings by the Court of Quebec highlight the obstacles faced by condominium syndicates, exacerbated by persistent legislative gaps and the absence of strict regulations on tenant liability.

Revealing rulings: Syndicates in difficulty

In the case Syndicat des copropriétaires condominium L’Astral v. Roger Sanders, water damage caused by a tenant resulted in significant losses. Although the tenant admitted fault, the court ruled that the landlord-owner could not be held liable under Article 1074.2 of the Civil Code of Quebec (C.C.Q.).

A similar scenario occurred in Syndicat des copropriétaires du 1200 Ouest v. Michel Bouvet et al., where a defective dishwasher in a rented unit caused damage. Again, the court found that responsibility for the appliance lay with the tenant, thereby exempting the landlord-owners. These decisions highlight the inability of syndicates to recover deductibles from owners when damages are exclusively caused by their tenants.

Identifying tenants: A legal headache

One of the main challenges for syndicates is identifying at-fault tenants, especially in short-term rental cases. Owners do not always provide tenant information as required under Article 1065 C.C.Q. Without these details, it becomes impossible to pursue the responsible party. As a result, syndicates often have to cover deductibles, which can reach astronomical amounts and are unfairly distributed among all co-owners.

Inadequate regulations for current needs

The absence of a legal requirement for tenants to carry liability insurance worsens the situation. Unlike other jurisdictions, such as France, Quebec does not mandate this coverage. This leaves syndicates powerless against insolvent or uninsured tenants, increasing financial risks for condominiums.

Financial impact: Co-owners under pressure

Uncovered or poorly managed claims weaken syndicate finances. With rising deductibles and soaring insurance premiums, co-owners are burdened with heavy and often unjustified financial charges. This leads to budget deficits and special assessments, threatening the economic viability of many condominiums.

Toward legislative reform: Learning from the French model

To address these gaps, several solutions should be considered:

• Mandatory tenant insurance: Legally requiring tenants to have liability insurance, as in France, would reduce financial risks for syndicates.
• Stronger tenant disclosure requirements: Enforcing a rule that owners must promptly provide tenant identities and proof of insurance to the syndicate, with penalties for non-compliance.
• Simplified legal recourse: Amending Article 1074.2 C.C.Q. to facilitate syndicate claims, including shifting the burden of proof.

A Call to Action

Recent rulings demonstrate that the current legal framework does not provide adequate protection for Quebec condominiums. Reform is needed to restore fairness and ensure the financial security of syndicates and co-owners. By adopting international best practices, Quebec can strengthen confidence in condominium living while protecting collective interests.