Understanding the Financial Responsibility Breakdown for HVAC Systems in a Commercial Co-Ownership
In a commercial co-ownership, managing shared equipment such as HVAC (heating, ventilation and air conditioning) systems can quickly become a delicate issue, especially when a major breakdown occurs. Who pays: the co-owner, the condo board, or all co-owners through the reserve fund? At AirGreen, we’ve helped numerous co-ownership properties in Montréal, Laval, Longueuil, as well as on the North Shore and South Shore, navigate these complex situations. Drawing from our real-world experience, we offer here a concrete, expert analysis of the topic, enriched with real case studies and practical advice.
Components of the HVAC System in a Commercial Co-Ownership
HVAC systems in co-owned commercial buildings can be:
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Centralized (one unit serves multiple spaces)
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Individual (each unit has its own system)
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Hybrid (some components are shared, others are private)
Each setup implies a different logic of responsibility.
What the Law Says: Private or Shared?
In most co-ownership by-laws, responsibilities are defined based on the classification of the components:
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Private portions: typically, equipment located inside the unit (like a thermostat or individual wall-mounted heat pump) falls under the co-owner’s responsibility.
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Common areas: ductwork, rooftop central units, interconnected ventilation systems are usually the responsibility of the condo board.
⚠️ Important: The reality can vary from one building to another. A careful reading of the declaration of co-ownership and by-laws is essential.
Case Study – Commercial Complex in Laval
In 2024, we were called for a complete failure of a central heating system in an office complex in Laval. The central heat pump (Goodman 5-ton model) served 8 commercial units through a network of interconnected ducts. The 18-year-old unit had broken down in the middle of January.
The issue:
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Two co-owners refused to contribute, claiming the unit only served certain offices.
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The condo board hesitated to dip into the reserve fund.
Our approach:
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Full diagnostic of the failure.
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Production of a detailed expert report to support the claim with the board.
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Assistance in legal clarification in collaboration with a co-ownership law specialist.
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Rapid replacement with a Bosch BOVA 60H unit, SEER 18 efficiency, eligible under the LogisVert program.
Outcome: The board covered 100% of the costs, based on our report’s conclusions and the by-laws.
The Crucial Role of the Co-Ownership By-Laws
Here are the key elements to verify in the by-laws:
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Definition of common areas with restricted use.
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Clauses on mechanical equipment.
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Sections on cost sharing for replacement or repair.
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Specific rules for equipment on flat rooftops (e.g., heat pumps, central air conditioners).
Financial Implications: Repair vs. Replacement
When a major failure occurs:
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If the system is shared: the condo board covers repair/replacement (often through the reserve fund).
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If the system is private: the affected co-owner bears the costs.
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If the system is hybrid: costs can be shared based on use, provided the by-laws allow it.
AirGreen Tip: Anticipate these costs with an annual HVAC assessment of your building. We offer tailored service packages for commercial co-ownerships.
Preventive Maintenance: A Shared Responsibility
A well-maintained system reduces the risk of major breakdowns. Yet, maintenance is often overlooked. At AirGreen, we offer commercial HVAC maintenance contracts including:
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Duct cleaning
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Inspection of indoor and outdoor units
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Thermostat calibration
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Airflow and indoor air quality checks
We regularly operate in Longueuil and on the South Shore for co-owned commercial buildings with multisplit systems or large central units from brands like Lennox, Trane, or Fujitsu.
How to Manage a Major Breakdown Without Conflict
Here’s a proven methodology:
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Quickly identify the exact cause of the failure (AirGreen diagnostics within 24–48h).
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Review the co-ownership by-laws to identify who is responsible.
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Notify the board transparently and document every step.
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Call in a certified HVAC professional (like AirGreen) for repair or replacement.
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Communicate clearly with co-owners through the board.
Why Choose AirGreen for Your Commercial Co-Ownership?
We’re a trusted provider of HVAC installation, maintenance, and repair for commercial co-ownerships in Montréal, Laval, Longueuil, North Shore and South Shore. Our advantages:
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Expertise with trusted brands: Goodman, Bosch, Trane, Fujitsu, Haxxair
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Fast service with comprehensive technical reports
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Support in legal analysis during disputes
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Assistance with grant applications (e.g., LogisVert program)
Client Testimonial – Sainte-Julie (South Shore):
“Thanks to AirGreen, we were able to quickly replace our central system after it broke down. Their report was crucial in getting the board to cover 100% of the costs.” – Commercial co-ownership property manager
Conclusion: Plan Ahead to Manage Better
A major HVAC system failure in a commercial co-ownership can trigger tension and high expenses. But with a thorough review of by-laws, proper planning, and a reliable technical partner like AirGreen, you can avoid conflicts, speed up repairs, and maximize your investment.
Contact us today for a preventive diagnostic or a full assessment of your commercial HVAC system.