Condominiums: What are the types of co-ownership in Quebec?

The term Condominium is used in Quebec to describe shared co-ownership. There are 2 categories set out by the Quebec government with very distinct differences.

Divided co-ownership is the right of ownership held by many people ("co-owners"). Each co-owner owns a fraction (%) of the property that is physically divided into a private portion and a share of the common portions. The private portion is typically determined from the gyprock walls inward. A condo association ("syndicat" in French) is established to govern the building's common areas and to set rules of conduct and process. The government has fairly strict rules on how divided condo associations must manage the building and owner relationships.

Undivided co-ownership is ownership of the same property, jointly and at the same time by several persons or companies called "undivided co-owners", each of whom privately owns a share (percentage) of the right of ownership and not a physical division of the property. The governance of this category can be less rigidly structured depending on the owners viewpoints on how to manage theier shared property.

One most notable difference between the two are the property taxes you can expect to pay. A divided co-ownership property can expect to pay almost double that of an undivided property.

When it comes to mortgage such properties, the government has more restrictions placed on undivided properties to protect its citizens. The mortgage must be held within one financial institution who has a set of rules to follow. Clients are never thrilled about this, even if however, it is to their benefit.

Some undivided property owners will want to convert their property to divided status so that it will sell eaiser and / or to sell for more. The property must then be converted. This process is done with the government, and can take a number of months and cost $7,000 - $10,000 to complete.

As here in Quebec we follow the French originating Civil Code and not British-based Common law, property and ownership have different perspectives from a law point of view. There are subtle differences in many jurisdictions and so it is important to consult with local real estate agents to learn more about the sector you want to live in.

For an interesting real-life variation and use of these 2 co-ownership categories, please read my blog titled: "Divided and Undivided Condominiums Together in One Complex in Montreal".