Documents nécessaires pour la vente d’une copropriété

La déclaration de copropriété : Si vous avez un condominium, il est important d’avoir une copie de la déclaration de copropriété et des règlements de l’immeuble. Dans la plupart des cas les promesses d’achat seront conditionnelles à la consultation de ces documents par l’acheteur.

Les états financiers, le procès verbal de la dernière assemblée et la preuve du montant du fond de prévoyance. Ces documents seront importants pour la vente d’un immeuble détenu en copropriété. Vous pouvez obtenir ces documents auprès du conseil d’administration. Ils ont l’obligation de vous remettre ces documents.

Les baux dans le cas d’un multiplex. Une copie des baux et des lettres d’augmentation avec les informations concernant les locataires. Les nouveaux propriétaires sont contraints de respecter les termes indiqués sur ces documents. Read more

Undivided Co-ownership: Mortgage and Financing

If you are looking to buying into a Co-propriété with a 15% down payment, start looking else where. The minimum down payment is 20%, and depending on the bank financing it, could be even higher than that: 30 – 35%. These types of properties are NOT covered by the CMHC (Canadian Mortgage and Housing Corporation).

While talking about financing, it’s important to mention that many major lending institutions do not offer mortgages for undivided Co-ownership types of buildings. The reason for this? We don’t have the foggiest idea. But, we can safely assume that since this is still a fairly new way of ownership, not every bank is ready to just jump into the “undivided co-owership wagon”. The two banks we’ve noticed the most offering financing for undivisions are: TD Canada Trust and Caisse Popular Desjardins.

Shared common costs:
Unlike condo owners, the co-proprietors share the tax bills: property and school. Renovation and maintenance fees are also part of the shared costs, much like the condo fees. The most appealing part about buying into an undivided property, according to recent buyers, is that you get to split the costly annual property tax bill. But is that good enough reason to own shares into a property as opposed to buying your own? The decision is yours, dear buyer.

If you have questions regarding condo purchasing, or require assistance, contact us

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What Undivided Co-ownership means

In your search for condos, you might have come across the term Co-propriété Indivise, or Undivided Co-ownership. In other provinces are referred to Co-op, but not here in Quebec. In this province, co-op means Housing Cooperatives; used for regulating housing fees and expenses, mostly rental properties. Since we are talking about purchasing real estate here, let’s stick with the two terminologies: Undivided co-ownership or Co-propriété Indivise.

What is Undivided Co-ownership?

According to La chambre de Notaires du Quebec:

A property of this type belongs to several individuals, called undivided co-owners. No one owner owns an exclusive portion of the property; rather, they each own a fraction.
For example, you buy a triplex with two of your friends and you all contribute equally to the sale price. After the sale, you decide to move into the second-floor apartment. The apartment does not belong to you exclusively; your two friends share its ownership with you, just as you share the ownership of their dwellings on the first and third floors. You and your friends are undivided co-owners of the whole triplex. In the example above, your shares in the immovable are one third each.

In a nutshell: When you buy into an undivided co-ownership you are acquiring shares into the ownership of the building, as an undivided co-owner.

Condominiums are divided by cadastral numbers, each unit has their own, sort of like a serial number for properties. When buying into a condominium, you are buying real estate property. While with undivided, the building has only one cadastral number (wheather it has 40 units or 2), and the undivided owners share the title of ownership to the whole building, with the exclusive rights to the units dictated on the indivision agreement.

In terms of property prices, we cannot say that condos are more expensive than undivided co-ownerships. The search results of condos sold in Plateau (2 bedrooms, 1 bath, 800-1000 sq ft) in the last six months gives us a median of $250,500. While with the same criteria, the undivided shows a median price of $244,000.

Undivided units are in buildings of different styles, sizes and in every type of neighborhood. We’ve noticed a great number of these properties popping up in Plateau, Downtown, NDG and Côte-des-Neiges. Also Westmount, Villeray and Rosemont are following up in listing numbers.

In a future article, we’ll write about Financing and shared costs of these types of properties. Stay tuned!

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