Definition : Relative value

Any co-owner may have the relative value of their fraction, as well as the allocation of common expenses, revised according to certain conditions and formalities. To do so, it is necessary to proceed with an appeal to revise the relative value of the fractions. Furthermore, a co-owner may wish to modify the relative value of their fraction. Therefore, they will have to request the prior consent of the Board of directors or the general meeting of co-owners, depending on what is required. This revision or modification of the relative value has an impact on the proportionate share of the right of ownership (which the co-owners hold in the common portions), the number of votes they can cast at the meeting of co-owners and the allocation of common expenses. On this question, Article 1064 of the Civil Code of Québec stipulates that: “Each co-owner contributes to the common expenses in proportion to the relative value of his fraction.”

Divided co-ownership is a housing formula that usually has more than one owner.  In order to assess and quantify the interest of each person in the building, the legislator has provided that the right of ownership of each owner in the common portions is proportional to the relative value of his fraction.  To determine the relative  value of a unit, it must be compared with the value of all the other units of the co-ownership.  The relative value is calculated and usually expressed as a percentage or thousandths.  Its distribution is recorded in the declaration of co-ownership, (the  constituting act of the co-ownership). Finally, it should be noted that the relative value determines the voting power in the meeting of co-owners and serves in particular as a basis for calculation in the distribution of the co-owners of the common expenses.

The co-ownership gives rise to expenses relating to the maintenance of the common portions and the day-to-day administration of the syndicate. Administrative, maintenance, replacement, improvement or alteration expenses of the common portions are divided among the co-owners. General common expenses are to be distinguished from particular common expenses, which are allocated under different rules. In the first case, it is the relative value of each fraction that is used to establish the co-owners contribution. As for particular common expenses arising from common portions for restricted use, the co-owners using them are alone responsible of the expenses resulting therefrom.

The first sentence of article 1090 of the Quebec civil Code states that "Each co-owner is entitled to a number of votes at a general meeting proportionate to the relative value of his fraction." The number of votes is related to the share of property rights each co-owner holds in the building. Therefore, the co-owner of a private portion whose relative value is higher will have more voting rights. In return, he or she will have to contribute to a larger portion of the costs related to the preservation of the immoveable and the maintenance and administration of the common portions, since common expenses are also distributed among all the co-owners according to the relative value of each portion.