What kind of co-ownership?

The kind of housing unit that interests you may also determine the form of ownership. When a building is owned by two or more persons, it is legally referred to as co-ownership. There are two types of co-ownership: divided and undivided.

Divided co-ownership
Divided co-ownership, commonly known as condominiums, allows a building to be divided into fractions, owned by one or more persons. A condominium building includes private portions that are exclusive to their respective owners, and common portions, such as the land, the exterior walls, the roof, etc. The latter belong on a quota basis to all of the coowners. Condominium ownership is ruled by a notarized declaration of coownership that enumerates the rights and obligations of the co-owners; this includes the declaration of co-ownership, the building regulations, and the descriptive state of the “fractions” into which the building is divided.

When a co-ownership is established, a syndicate of co-owners is created to oversee the preservation of the building, its maintenance and its administration. The expenses attributable to the common portions are shared by all the co-owners in proportion to the relative value of the part of the building owned by each, unless there is a stipulation to the contrary in the co-ownership declaration. Some useful advice: make sure that the contingency fund is adequately financed.

Undivided co-ownership
When several people acquire a building and each has a share in the entire property, this is what it known as undivided co-ownership. At the time of purchasing the building, there must be an indivision agreement, which is a document specifying the rules that the co-owners must respect. These involve the rights and obligations of each of the owners as regards to the use of the premises, maintenance, renovation work, sharing of expenses, sale of the property, administration and sharing in the event that the building’s undivided status is terminated.

Divided or undivided co-ownership? In both cases, make sure you closely read the co-ownership contract before committing yourself.

Source : Gouvernement du Québec, Ville de Montréal, Jacques Beaulieu Consultant