Question: Are the co-owners of a vertical co-ownership considered undivided in the horizontal condominium? And if so, what would be the impact on representativeness at the general meeting of the horizontal condominium (AGM)? For example, could a few co-owners of a vertical condominium act for all the co-owners without having previously held proxies as for the undivided co-owners of a condo during the vertical condominium AGM?
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A phased co-ownership allows the developer to spread the design of a real estate project over several years, and to modulate the pace of construction work according to the evolution of unit sales. This formula implies that the developer, rather than establishing once and for all the co-ownership he wants to create, proceeds in stages.
The co-ownership he creates as part of this real estate project evolves, during construction, before reaching its final form. Because of the complex legal structure, only lawyers and notaries who are fully knowledgeable in the applicable rules of the field should act.
A phased co-ownership is also beneficial to consumers. From the time the first buildings are developed, buyers usually know what to expect about the direction of the project, its location and the nature of the buildings to come. This protection is important because if, for example, a developer were to suffer a setback, his successors would be required to honour the original plans and respect what was represented to first-time buyers.
The provisions related to the appointment and replacement of the directors are provided for in the By-laws of the immovable (2nd part of the declaration of co-ownership). In their absence, they are also found in the Civil Code of Quebec (C.C.Q.). The law thus leaves it to the co-owners to establish themselves, in their declaration of co-ownership, the rules that best suit them. However, the appointment of directors generally falls within the competence of the general meeting of co‑owners, although the declaration of co-ownership may provide for other provisions.