Co-ownership is a form of ownership favored by more and more Quebecers, including Sherbrooke citizens, who wish to become owners. Indeed, some people enjoy the condo because it requires less maintenance. For others, it is a way to own that is in many cases more affordable than to purchase a home. In this article, we will explain the differences between the two possible modes of condominium Quebec, condominiums and undivided co-ownership.
Understanding Condominium
Condominiums (or condos) are quite common in Quebec and when people talk about co-ownership of a property, they are most likely talking about a condominium.
This type of co-ownership aims to legally and financially dissociate co-owners from each other and must be made official with a specific notarized document, the condominium statement. This statement is crucial because it establishes relationship benchmarks between co-owners and administrators regarding their building.
The building housing the condominium must be divided into private units and common units to ensure proper operation. Each part will have its own lot number once the cadastral operation has been completed. By definition, private units are unique properties that are the property of their respective owners. Common areas, meanwhile, belong to every co-owners and are managed by the condominium syndicate. The lobby, the pool and elevators are a few examples of common areas.
Finally, it is important to know that co-owners can use their private unit as they see fit. In fact, they can sell or rent it and they can also subscribe to a mortgage for their apartment that does not bind the other co-owners.
Understanding the Nuances of Undivided Co-Ownership
In an undivided property, a building is owned by a group of people without being separated into private and common units, as in the case of a condominium. Every member of the group is a co-owner of the building according to the importance of their share.
This co-ownership format is more complex, because it covers a wider range of situations than condominiums. In fact, it covers a large number of possible scenarios, such as a couple who buys a house or multiple members of the same family who inherit a property.
In an undivided co-ownership, there is no cadastral operation. Thus, the building co-owners have an undivided ownership right on the whole building and a right to occupy their own apartment. In short, they are co-owners of their apartment and co-owners of all the other apartments in the building.
In addition to the items mentioned above, one aspect that distinguishes undivided co-ownership is that it is not necessary to sign a notarized contract between co-owners. However, they will sign an undivided ownership convention to ensure that their rights are respected and that the obligations of everyone are well structured. In addition, this agreement will establish the rules regarding the operation and management of the co-ownership and harmonize relations between co-owners.
This concludes our article on the differences between condominium and undivided co-ownership in Quebec. We hope that reading it has helped you to better understand what distinguishes it and helped you to make your decision regarding purchasing a property in co-ownership. However, if you need further advice before making your purchase decision, do not hesitate to discuss with a real estate broker in Sherbrooke who is very knowledgeable on condominiums and undivided co-ownerships that can explain you their respective pros and cons.