Amount required, in the context of the conversion of an immovable into divided co-ownership, by some boroughs of the City of Montreal or other municipalities, at the occasion of a request for a subdivision permit . This tax represents a maximum of 10% of the value of the land on which is or will be built the building. It allows the municipality to create, enlarge or establish parks or play areas and to protect natural sites.
From the first day of existence of the co-ownership, that is to say when its declaration of co-ownership is published in the Land Register of Quebec, the co-owners as one body constitute a “syndicate of co-owners”. This legal person must ensure the "preservation of the immovable and manage the common portions." To form this co-ownership several steps involving many protagonists are necessary.
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.