Definition : Co-ownership by phases

A certain co-ownership type characterized by the developer’s choice of staggering the construction of his real estate project over a few years. Two main methods can be used to achieve  this phasing, or even combined : the Landry method on the one hand, and the method known as concomitant declarations, on the other hand.

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The Board of Directors (the Board) is made up of members called directors. Their appointment is subject to certain formalities. In this regard, article 1084 of the Civil Code of Québec provides that the composition of the Board of the syndicate, the method of appointment, replacement or remuneration of the directors, as well as the other terms and conditions of their office, are fixed by the by-laws of an immovable. Each director acts as a mandatary of the syndicate of co-owners. This person must comply with the obligations imposed on him by law and the constituting act of co-ownership and act within the limits of the powers conferred on him. A director sits on the syndicate's board of directors.   
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Large-scale real estate developments in divided co-ownership are often carried out in successive stages, the number of buildings and the duration of the work are a function of the marketing and interim construction financing. Some co-ownerships have more than one building that have in common community spaces such as a parking lot, a swimming pool and traffic lanes. In such a context, it is then a question of "co-ownership in phases". This type of 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. However, it is customary to announce in the preamble of the declaration of co-ownership the legal structure chosen for this type of co-ownership.
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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.
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