The declaration of co-ownership is an agreement that organizes and regulates the collective life of the co-owners and occupants of the building. This convention defines in particular their rights and obligations. As it is an authentic act, it must be received by a notary. The declaration of co-ownership is often signed by the developer who acts as sole proprietor, or sometimes, by co-owners who wish to subject their immovable (held in joint ownership) to the regime of divided co-ownership, as well as by hypothecary creditors. This document must subsequently be published in the land register. Its publication gave rise to co-ownership and the syndicate. Any new co-owner is obliged to adhere to it. A look at the different aspects of the declaration of co-ownership.
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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.
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The notary is a jurist with the task of public officer, who ascertains the free and informed consent of the parties. The notary also has the role of legal adviser. It therefore protects consent. The intervention of the notary is very important when purchasing an apartment in a divided co-ownership. A professional, he is a member of the “Chambre des notaires du Québec” (Québec Chamber of Notaries). In this capacity, the notary's mission is to receive, on behalf of his clients, the acts to which the parties must or want to have given the character of authenticity (such as a declaration of co-ownership). Even though it is preferable that he should get involved at the outset of a transaction, this legal adviser usually gets involved after the signing of the offer to purchase or of the preliminary contract.
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When you buy in a newly built divided co-ownership, a portion of the fractions of the building (apartment, parking or storage space, etc.), or even all, can be the subject of a notice of legal hypothec of construction. The Civil Code of Quebec introduced this hypothec in order to protect the persons who participated in its construction or renovation (architect, engineer, supplier of materials, workman, contractor or subcontractor) so that they can be reimbursed for work and services carried out on an immovable.
As a buyer, will you be required to pay the developer's debts if it defaults on its construction creditors? If so, will the amounts claimed be distributed among all co-owners? And what will happen if they refuse to pay?
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Whatever the type of building they have chosen, all co-owners, without exception, are called upon to participate in meetings of co-owners. Thus they can vote on the questions on the agenda, and take various decisions necessary for the sound operation of the co-ownership. The co-owners are called upon to meet periodically for questions dealing with current administration, maintenance and operation of the syndicate, and sometimes exceptionally for specific questions required by the circumstances. This factsheet is an overview of the various types of Meetings that may be held in a co-ownership.
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