John B. Joseph

Your first barometer on market is buyer interest or number of visits, second, buyer offers and last an accepted offer.

As the market is always changing, and given the factors at play, the best agents will provide you a likely selling range and timeframe given conditions when you go to market. While some properties just need that one buyer to find them, an overpriced listing sits and grows stale. This seller must wait for the market to elevate itself, to reach their price. If a property is priced too low, some buyers will wonder what is wrong with the property, speculators and renovators will jump at the opportunity.

Make sure you are not seduced by the agent offering the highest price for your property and rather choose an attentive agent who backs up their case with facts and who you trust will be there to support and communicate well with you from start to finish as you move through the sales process. A good agent protects you, removes barriers and keeps transactions safe.

Becoming more common are children inviting their parents to move into their home providing as much independence as possible. These properties have of recent been identified within the real estate community as Intergenerational Properties.

An Intergenerational Property includes an additional dwelling that allows for home-sharing between parents and children and does not usually generate revenue. A revenue property is a single-family residence that has a rental unit that brings in additional revenue for the owner.

On the Montreal Island, I have seen converted basements added kitchens, patio doors and elaborate bathrooms mostly. Off island or on occasion in town the garage is converted or another dwelling on the property is used.

If you seek to create or purchase an intergenerational space or property, remember that this status must be recognized by your municipality.

Most recently, I was involved in 2 condominium sales of a different nature. The "Villeneuve" project is a renovation/restoration project of some 47 units on 3 Streets in Montreal. The buildings are triplexes (3 units per building). On Villeneuve Street they extend from Jeanne Mance eastward to the next Street which is Esplanade. Bordering this row of buildings on both Jeanne Mance and Esplanade are 2 semi-detached buildings on each Street.

A unique feature of this complex: a boiler heating building at the back with a studio condo unit newly added within. This is the central water boiler heater for all units within the complex. I understand this was the first and now only remaining exterior central heating unit left in Montreal and therefore quite unique, adding to the historical value of the complex.

The interesting part for the real estate community is how the complex was re-structured by the renovator to allow current renters to remain while the complex was slowly renovated for resale.

Consideration had to be given to the city's requirement to maintain the boiler room building within the complex and to respecting the province’s laws. To accomplish this, a Horizontal condominium association was formed to account for the common areas within the complex including the boiler building. As the renovator's intention was to sell off all the units, they then created an undivided structure for each triplex (building with 3 floors, 3 units). This was called the Vertical condominium association and there is one for each building.

A little segue here for explanation: The law in Quebec does not allow a building to be a divided condo unless there is a resident owner for each unit within a building. Should a condo association agree to allow its owners to rent out their condos then it is okay as it is within the rules of the government’s definition. This undivided status allowed the renovator to sell off one unit at a time within a building.

The way this was done was for the renovator to own unsold units, rented out or unoccupied, and for new condo owners of units to own the building together within the undivided category. Once all 3 units in a building are sold, they can then apply to be converted to divided condo status with the government. For more information on the difference between Undivided and Divided condominium status in Quebec, please read my blog titled: “Condominiums: What are the Types of Co-Ownership in Quebec”.

Photo below:
The photo at left shows the old storage sheds restricting views out the back. The photo at right is the most recent. The balconies were opened up and smaller storage sheds installed. A new fence, balconies, stairs and courtyard and other improvements have rejuvenated the outside space and complex. Above the old boiler room, black framed door and window at bottom, has been converted and sold as a condo unit.

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".