In divided co-ownership, the right of ownership is divided, among the co-owners, by "fractions", each comprising a materially divided private portion (e.g. a residential unit, a parking or storage space, and sometimes even a plot of land) and a share of the common portions. To each fraction is attached an undivided right of ownership in the common portions, and sometimes the right to use the common portions for restricted use.
The fraction is the result of the division of a building to create a co-ownership. In other words, the addition of all the fractions constitutes, by the effect of the publication of a declaration of co-ownership, the co-ownership building.
The characteristic of divided co-ownership is to divide the building into various lots that will be the exclusive property of the co-owners (private portions), and for others that will be the property of all the co-owners (common portions). These lots are identified by an individual number, which was assigned during the cadastral operation. Each of the private lots of the co-ownership thus constituted becomes a unique property. The distinction between the common and private portions is essential, particularly from the point of view of maintenance, which is the responsibility of the syndicate of co-owners for the common portions and of the co-owners for the private portions.
Buying real estate is for most people the most important investment of their lives. Such a decision must necessarily be well planned and thoughtful. But when this purchase concerns a dwelling in divided co-ownership, the operation is even more delicate and requires additional prior checks. Despite all this type of housing is attractive, because it allows easier access to the property, due to a lower cost to buy, if we compare it to that of a single-family home. Young households and tenants benefit. As proof, more and more of them are opting for the"condo"formula, which allows them to finally be owners much faster.
You have taken the decision to purchase an apartment in a co-ownership. It is often an excellent investment and an easy way to have access to home ownership. In many instances, it will be the investment of a lifetime.
This purchase will involve you, from day one, in the community of co-owners for years to come. Be aware: this decision should not be taken lightly to ensure that your purchase will not become a nightmare.
After months of searching, you have found an apartment completely renovated and decorated with great taste. Finally, you will buy the property of your dreams with training room, roof terrace, swimming pool and indoor parking. You certainly know that making the leap can be both an exciting and complex step. Only it is a divided co-ownership apartment. That is why, at the time of submitting the offer to purchase, a doubt intrudes into your heart. All kinds of questions intertwine in your mind:
After reaching an agreement on the conditions of sale with a builder or developer, you will be asked to sign a preliminary contract.It is compulsory only in the case of the sale of a dwelling to be occupied by a natural person, It is not compulsory for a sale to a company. The preliminary contract precedes the purchase of any new or to be built property. Existing condos are generally the object of an offer to purchase. You must use it, irrespective of the fact that a real-estate broker is involved (or not) in the transaction.
You will find, hereunder, directives concerning the undertakings, provisions, and essential terms and conditions to include (or to consider) when preparing a preliminary contract.
Buying an apartment in a co-ownership is a major investment in a lifetime. In order to avoid being caught off guard during the steps prior to this acquisition, you will need to be well accompanied. After finding the apartment, the first thing to do is to appreciate the condition of it, as well as that of the building that houses it. To do things right, you need to seek the services of a building inspector.The latter will examine the unit and building that are of interest to you.
However, some buyers mistakenly believe, when it comes to a purchase in a tower, that it is not useful. However, buying without an inspection can generate significant and unpredictable costs. The purchaser will also find it difficult to demonstrate that he acted as a prudent buyer during a possible recourse for a hidden defect.
It is indeed a rare occurrence when a buyer pays its condo, in one single payment. Most of them must obtain a mortgage loan to finance their purchase. What are the criteria and conditions to get a mortgage loan? Whom should you get it from? Banks, credit unions or other sources? What are the policies of the major financial institutions in this market? What are the limitations when planning the financing of your new property?
The final step in the purchase of your apartment is the signing of the deed of sale. As soon as all the prior conditions of the sale are satisfied, the vendor must transfer the property upon the payment of the price.