Factsheets - Purchase & condominium condo

If you are shopping for an apartment, ask yourself if it is located in a divided or undivided co-ownership. Although these two concepts are similar, as they ultimately aim to share the same building by several people called co-owners, the legal and financial implications are not the same. These two types of co-ownership thus have very different terms of ownership, ownership and liability between the co-owners of a building. A look at the main distinctions between divided co-ownership and undivided co-ownership.  

Undivided co-ownership (by indivision) has existed since time immemorial, even before the existence of divided co-ownership. Indivision allows two or more people to own a building while sharing acquisition and operating costs. A co-ownership is said to be undivided when the right of ownership is not accompanied by a material division of the property. The building usually has a single lot number. The owners own a share of this lot. The municipal and school tax bills are thus intended for all the co-owners of the building, who must separate the costs. In addition, since 1994, the Civil Code of Quebec has contained several rules governing joint ownership.

In undivided co-ownership, the rights of withdrawal and of first refusal may disrupt the course of a real estate transaction. It is important to know that other co-owners may take precedence over a potential purchaser.  The title of the latter could be precarious for some time: a buyer who acquires rights in an  undivided co-ownership  without first receiving the approval of all the undivided co-owners is therefore liable to have his share redeemed and thus be excluded from the indivision.    

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.

By purchasing a condo (apartment) in a residential tower, you automatically become an owner in a vertical co-ownership. You can also be in a divided co-ownership, if you purchase a house (semi-detached or townhouse), built on the same lot than other individual homes.  It is then called a horizontal co-ownership. If this is the case, you may not be the sole owner of the land surrounding your home.  You will therefore share with others the ownership of the private streets leading to the homes and common areas, and the common equipment such as the swimming pool and collective parking.

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. a residential unit, 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 characteristic of divided co-ownership is to divide the building into various lots that will be the exclusive property of the co-owners (private portions), and for others that will be the property of all the co-owners (common portions). These lots are identified by an individual number, which was assigned during the cadastral operation. Each of the private lots of the co-ownership thus constituted becomes a unique property. The distinction between the common and private portions is essential, particularly from the point of view of maintenance, which is the responsibility of the syndicate of co-owners for the common portions and of the co-owners for the private portions.   

Buying real estate is for most people the most important investment of their lives. Such a decision must necessarily be well planned and thoughtful. But when this purchase concerns a dwelling in divided co-ownership, the operation is even more delicate and requires additional prior checks. Despite all this type of housing is attractive, because it allows easier access to the property, due to a lower cost to buy, if we compare it to that of a single-family home. Young households and tenants benefit. As proof, more and more of them are opting for the"condo"formula, which allows them to finally be owners much faster.

You have decided to buy an apartement in a co-ownership. This type of acquisition represents an efficient way to access property. For most of you, housing is not just an investment, it is also a source of well-being, self-projection and life organization. In co-ownership, it promotes the quality of living together in neighborhood relations. Becoming an owner in a co-ownership is not limited to choosing an apartment. Other criteria must be examined before taking this step. In particular, it is necessary to understand the legal basis of this type of collective ownership and to carry out the necessary checks beforehand. These allow the buyer to make an informed commitment and to ward off any unpleasant surprises after the signing of the deed of sale.

After months of searching, you have found an apartment completely renovated and decorated with great taste. Finally, you will buy the property of your dreams with training room, roof terrace, swimming pool and indoor parking. You certainly know that making the leap can be both an exciting and complex step. Only it is a divided co-ownership apartment. That is  why, at the time of submitting the offer to purchase, a doubt intrudes into your heart. All kinds of questions  intertwine in your mind: