Curious about different types of property ownership in Québec? Let’s shed light on the nuances of divided and undivided co-ownership in Quebec.
Whether you’re a buyer exploring your options or a homeowner looking to better understand the topic and make an informed choice, our condo management company will help you explore the benefits, responsibilities, and specific regulations of each model.
Understanding the condominium association
This legal entity is formed by the owners of units within a condominium building. Its primary function is to manage and maintain the common portions, ensuring they are well-kept and that all owners follow the condominium declaration and by-laws.
Definition of the association
- In a divided co-ownership: each owner holds an individual private unit along with a proportional share of the common areas, granting specific rights and responsibilities regarding the management and maintenance.
- In undivided co-ownership in Quebec: owners share ownership of the entire property. Their undivided rights and obligations are distributed according to their respective shares.
For both divided and undivided co-owners, the association manages the property’s well-being and value, operating within a structured framework with an elected board handling decisions and rule enforcement.
The importance of the condominium declaration
The condominium declaration outlines the legal structure, governance, and rules for the association. In divided co-ownership, it specifies the individual unit boundaries, exclusive rights to private portions, and shared responsibilities for common elements. In undivided co-ownership, the declaration details the indivision agreement, the collective ownership structure, and usage rights for the entire property.
💡 This foundational document ensures that all owners, regardless of their ownership type, abide by the same standards. It is essential for resolving disputes and providing a clear operational framework for the association.
Undivided co-ownership in Québec: why it’s not a common option
Undivided co-ownership is less popular due to financing challenges, as all co-owners often need to be involved in mortgages, limiting individual flexibility. It also lacks clear divisions between private and common spaces, complicating resale and ownership rights. These legal and financial constraints make it a less attractive option for most buyers.
Why people using this form of co-ownership?
People choose undivided co-ownership primarily for its affordability and flexibility in purchasing property. This form allows multiple buyers to acquire a property together, often at a lower cost than traditional ownership. It’s ideal for families, friends, or partners who want to share a residential dwelling while dividing the financial responsibilities and enjoying collective ownership of common spaces.
Structure of a condominium association
The structure of a condominium association is designed to facilitate efficient management and governance, whether for divided or undivided co-ownership properties. It includes roles and responsibilities distributed among owners and elected board members to ensure smooth administration and maintenance.
Roles and responsibilities
For a buyer interested in an undivided or divided co-ownership building, understanding the rules of administration is key to ensuring transparency in governance for the future.
In divided co-ownership, the roles and responsibilities within the condominium association are divided among unit owners, who vote on significant matters, while the board of directors manages day-to-day operations. In undivided co-ownership in Quebec, responsibilities are shared collectively among all owners, with the board overseeing the entire property.
Each owner contributes to the association’s sharing of expenses (such as maintenance, repairs, and common area utilities) through regular assessments to ensure that the property remains well-maintained for all residents.
Composition and governance
The composition of a condominium association typically includes all unit owners, who elect a board of directors to manage the property’s affairs. In divided co-ownership, each owner has a specific interest in their unit and common areas, while in undivided co-ownership in Quebec, owners have a collective interest in the entire property. The board governs the association, enforces rules, and ensures compliance with the condominium declaration and by-laws.
Governance involves regular meetings where owners discuss and vote on important issues. Voting rights vary based on ownership share or unit size in both divided and undivided co-ownership structures. The board’s responsibilities include:
- Budgeting: school taxes, operating costs, condo fees, building expenses, municipal taxes, civil liability, deductible payables, contingency funds, etc.
- Building maintenance and repairs: planning for interior and exterior maintenance or major repairs,
- Community management: addressing concerns or disputes within the community
Common and private areas
Understanding the distinction between common and private areas is crucial for condominium owners. Common portions are shared by all owners and maintained by the association, while private portions are individually owned and managed in divided co-ownership, or collectively managed in undivided co-ownership in Quebec.
Definition of common elements
In both divided and undivided property ownership, the association is responsible for the maintenance and upkeep of common property elements that are collectively owned and enjoyed by all owners:
- Hallways
- Lobbies
- Recreational facilities
- Exterior and parking spaces
- Exterior walls
Proper management of these elements is essential for maintaining the appeal and functionality of the entire building.
Definition of private portions
For divided co-owners, private portions refer to individually owned units or apartments, with exclusive rights and responsibilities for their space. For the undivided co-owners, these portions, such as private parking spaces, are less clearly defined, as all owners collectively share ownership of the entire property.
Legal framework governing the association
The legal framework governing a condominium association ensures proper management, resolves disputes, and protects the rights of all owners, regardless of the type of ownership. It includes:
- Creation of the association
- Handling of legal issues
- Maintaining compliance with relevant laws
How is it established?
A condominium association is established through the filing of a condominium declaration and by-laws with local authorities. In divided co-ownership, this process includes defining physical divisions, such as individual unit boundaries and common areas. In undivided co-ownership in Quebec, the co-ownership agreement details the collective ownership structure and usage rights for the property.
This legal process sets up the framework for the association’s operation, outlining the rights and obligations of all condo owners and specifying the governance model, including the election of a board of directors.
Legal procedures in case of disputes
Effective dispute resolution mechanisms are crucial for maintaining a harmonious living environment and include legal procedures such as mediation, arbitration, or court proceedings. These apply to both divided and undivided co-owners.
Handling of damages
The condominium association is responsible for handling damages to common elements and ensuring repairs are carried out promptly, applicable to both. Owners must report any damages to the board, which will coordinate repairs and manage associated expenses.
The association’s proactive approach, concerning improvement obligations and prompt repair of damages, ensures a safe and pleasant living environment for all residents while preserving the property’s condition and value.
When should the condominium meeting be called?
Condominium meetings are typically called at least once a year to discuss important matters:
- Financial status
- Property management
- Specific issues or concerns (unforeseen events, common costs, sharing of maintenance, etc.)
Also, regular meetings are vital for transparent governance and effective decision-making. They provide a platform for the owners to:
- voice their opinions,
- vote on critical matters,
- stay informed about the association’s activities and plans.
Exploring your co-ownership options in Québec
If you’re looking to acquire an undivided share in a residential dwelling or explore co-ownership in condo buildings, understanding the differences will help you make an informed choice.
For expert guidance on effective condo management, contact us today and discover all our solutions.