- Lease : Lease for a lifetime
Definition : Lease - Lease for a lifetime
A residential lease signed before the authorization to convert a rental building into divided co-ownership has been granted by the Administrative Housing tribunal. In such cases, the tenant is entitled to remain in the premises andcannot be evicted (by the lessor) from his dwelling by way of repossession, unless he is an assignee of the lease and the assignment took place after the sending of the notice of intention (to convert the building into divided co-ownership) or if he becomes a tenant after the Administrative Housing Tribunal has authorized the owner of the immovable to proceed with the conversion.
Afflicted with a health issue, you want to move to an apartment closer to your daughter, which is fitting, given that a unit in her condo building is for sale. However, this unit is rented. During a visit to the premises, the tenant informs you that he has no intention of leaving, claiming a right to stay there for life. At least, for as long as he wants to.
On the other hand, the seller tells you that the tenant will have to leave the unit upon receiving a notice of repossession. Intrigued by the tenant's statement, you take time to interview several people to verify this "lease for a lifetime" matter. The answers provided reassure you: if it is sent six months before the planned repossession date, the notice of repossession should allow you to take back the apartment.
The conversion of an immovable into divided co-ownership has certain undeniable advantages, including that of being able to obtain a mortgage loan from the financial institution of one's choice, while in joint ownership, all owners must finance themselves with the same institution. In addition, the minimum down payment in undivided co-ownership required is 20% of the purchase price of the apartment, and not 5%, as is the case in divided co-ownership, since mortgage insurers do not provide insurance for such loans. It is in this specific context that many owners wish to convert their building into divided co-ownership.
1er décembre 2020 - La plupart des locataires qui vivent en copropriété ont la bonne attitude. Néanmoins, une minorité d’entre eux ne respecte pas le règlement de l’immeuble. Si tel est le cas, les administrateurs doivent intervenir, afin d’amener ces locataires à en respecter le contenu. Ne pas le faire risque d’engendrer un climat délétère au sein d’une copropriété, ce qui pourrait entraîner des conséquences fâcheuses que personne ne souhaite. En d’autres termes, il ne faut pas laisser les locataires faire n’importe quoi, autrement ils finiront par imposer leur loi.
Comment gérer le locataires d'une copropriété? Quels sont les devoirs d'un copropriétaire bailleur? Est-ce que les administrateurs peuvent intervenir, afin de rappeler à l'ordre des locataires qui ne respectent pas le règlement de l'immeuble? Cette webradio répond à toutes ces questions, et à bien d'autres.
Whether you are a real estate developer (for a new building) or several owners of an existing building who wish to convert it, the rules for subjecting a building to divided co-ownership are the same. The creation of a divided co-ownership is necessary when an immovable must be divided into lots composed of a private portion and a share of the common portions, and which belong to one or more different persons. The community of co-owners acquires the status of legal person from the day a declaration of co-ownership is published at the Land registry office (Land Register). The legal person thus constituted takes the name of “syndicate of co-owners”. Its mission is to ensure the " preservation of the immovable, the maintenance and administration of the common portions, the protection of the rights appurtenant to the immovable or the co-ownership, as well as all business in the common interest ". To form this co-ownership several steps involving many protagonists are necessary.
At the signing of the deed of sale before the notary, an authentic copy of the declaration of co-ownership must be remitted to you.In order to maintain the stability of this contractual framework, every purchaser undertakes, by signing his deed of purchase, to abide to the declaration of co-ownership and the by-laws of the immovable adopted and filed in the register of the co-ownership.
The purchaser is thus bound by the declaration of co-ownership, even though he has not signed it, as well as by its amendments (article 1062 of the Civil Code of Quebec). In this regard, a clause providing that the new co-owner will comply with the rules of the declaration of co-ownership is generally included in the deed of sale.
The purchase of a condo leased to a third party is a frequent occurrence in the resale market. Save for an agreement to the contrary, nothing prohibits a co-owner lessor from selling and a purchaser of purchasing an apartment even though the tenant wishes to continue to reside in it. The lease is attached to the immovable, not to the co-owner/ lessor. The lease will continue to be in force even if the unit is sold and the terms and conditions of the lease shall remain the same.
Be careful, however, there are some pitfalls and if you are not careful your investment could quickly prove unsuccessful. This is the reason why you need to follow a few steps before, especially if you are a real estate owner for the first time.