Definition : Immovable hypothec (conventional) - Cross hypothec

If you are shopping for an apartment, ask yourself if it is located in a divided or undivided co-ownership. Although these two concepts are similar, as they ultimately aim to share the same building by several people called co-owners, the legal and financial implications are not the same. These two types of co-ownership thus have very different terms of ownership, ownership and liability between the co-owners of a building. A look at the main distinctions between divided co-ownership and undivided co-ownership.  

The conversion of a immovable to divided co-ownership (condos) is subject to strict formalities and municipal by-laws, which can restrict the conversion or make it subject to certain conditions.. 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.