Definition : Immovable hypothec (conventional) - (Conventional) hypothec - Cross hypothec

A clause in some undivided co-ownership agreements, securing the obligations of an undivided co-owner towards the other undivided co-owners and conferring a hypothecary recourse in the event of default.

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In my practice, many clients consult me to convert an immovable comprising several apartments into divided co-ownership. Unfortunately this does not always prove possible, more particularly because of the very high costs such a process implies (such as subdivision taxes known «Parkland taxes»  applicable in certain boroughs of Montreal or other municipalities) and vested rights in favor of tenants.
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  When shopping for an apartment, you must find out if it is in a divided or undivided co-ownership. Even though both concepts are similar in that their ultimate goal is the partition of an immovable between several persons called co-owners, the financial and legal commitments are different.  
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