- Private portion : Deed of sale
Definition : Private portion - Deed of sale
Contract by which a natural or legal person (seller) transfers the ownership of a private portion and the share (%) of the common portions attached thereto to another natural or legal person (purchaser) in return for financial compensation. This type of transaction is usually prepared and received before a notary and is subject to the rules of publicity of rights in the Québec Land Register.
WHAT YOU SHOULD KNOW! Any transfer of ownership of a fraction or part of a fraction must be notified in writing to the syndicate within fifteen (15) days of the publication of the deed. This legal obligation was introduced into article 1065 of the Civil Code of Quebec by Bill 16. In particular, it allows the syndicate to keep the register of co-owners up to date.
December 27, 2021- The Meeting of co-owners is a major event in the life of a co-ownership. A meeting at least once a year, it is decisive since it allows the making of major decisions that impact the lives and finances of the co-owners. The board of directors' mission is to take care of the convening and holding of the meeting of co-owners but also of the execution of the decisions it votes. Decisions taken have to appear clear and careful planning is required. It is also important to understand the rules that apply to it.
A recent judgment of the Court of Québec, Small Claims Division, sanctioned a company and one of its directors, who also acted as real estate broker, for not allowing buyers to adequately understand an important aspect of the property sold.
The building, built in 1938, had undergone major renovations for a four-unit co-ownership conversion. According to the company's administrator, the flat roof of the building still had a useful lifetime of nearly 7 years. However, no studies were carried out on its condition and the characteristics of the building prevented buyers from verifying it. In addition, the vendors had no documentation regarding the last roof repairs.
Most often than not declarations of co-ownership (Constituting Act of co-ownership) designate the legal status of exterior parking spaces as common portions for restricted use. This is also true for indoor parkings, when the developer (declarant) decides that it is not necessary to create a specific lot number for each space. These are therefore an integral part of the lot constituting the common portions of the immovable.
Parking spaces qualified as private portions are commonplace in divided co-ownership. This special legal status is attributed to them by the declaration of co-ownership, which designates them as fractions in the section devoted to the description of the fractions. Like an apartment held in co-ownership, all these spaces have a unique lot number, along with a relative value, and a share. Their owners may, at a general meeting of co-owners, prevail themselves of the votes attached thereto. These votes are added, as the case may be, to those they have for their apartment
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. an apartment, 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 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.
Section 1719 of the Civil code of Québec states that the seller must provide the buyer with a copy of the deed of purchase, as well as with a copy of the owner history and of the certificate of location he has on hand. Prepared by a land surveyor, the certificate of location is part of the property titles the seller must supply.
In the interest of the buyer, the certificate of location should clearly describe the current condition of all private portions (for instance, an apartment, a parking or storage space, or even land). Should the seller not have a certificate of location on hand (and unless the promise to purchase states otherwise), they will need to have one prepared, at their own expense.
An offer to purchase, also known as a promise to purchase, precedes any transaction relating to an existing property, as opposed to new or to be build condos, which are accompanied by a preliminary contract. The initiative of an offer to purchase is taken by a potential buyer, who will establish the conditions for the acquisition of a property. Although this document is not mandatory, legally speaking, it represents a mandatory passage for most buyers. Generally recorded in writing, the offer to purchase shows the willingness of the future purchaser to engage in the transaction. It is also a first step that leads to the deed of sale.
Once the apartment of your dreams in your price range found, the next step is to make an offer to purchase, either verbally or in writing. Although the verbal option is legally valid, it is better to formalize it in writing. L’Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) (the Quebec Organization for the Self-Regulation of Real Estate Brokerage) imposes a rule of ethics, namely that all acting real estate brokers must record in writing the intention of the parties to enter into real estate transaction.
The transfer of ownership will take place at the signing of the deed of sale, as well as the taking of possession which usually takes place on the same day. In return for the payment of the sum agreed to the seller, the buyer will have the full enjoyment of the property sold. In addition, during the transfer of ownership, the seller transfers all the risks associated with the building. In this regard, the deed of sale usually includes a risk transfer clause which stipulates that once you have signed the deed of sale, you become responsible for the risks and losses related to your newly acquired property. It is therefore important to take out the necessary insurance (such as home insurance) from day one.
I just bought an apartment in a co-ownership.
Question: Should the syndicate be provided with a copy of the deed of sale in order to file it in the registers of the co-ownership? Can it require the new co-owner to provide the said deed of sale? And if so, who must pay for it?
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Question: Est-ce que je suis obligé d'utiliser les services du notaire désigné par le promoteur alors que c’est moi qui le paie? Quelles sont les règles qui s'appliquent en la matière : qui choisit le notaire instrumentant la vente? Est-ce le vendeur? Est-ce l'acheteur? Doit-on s'entendre tous les deux sur un nom?
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