![](\"https:\/\/mcusercontent.com\/93cd80b45544fad91b6b44d60\/images\/8b0ee152-9590-9eb4-6087-6eea63570a3a.png\")
<\/p>\n
Divided or undivided co-ownership?<\/h2>\n
First element to consider: are you buying a divided or undivided co-ownership? There are important differences between the two.<\/p>\n
Divided co-ownership is what is generally called a condo. It is a property where each buyer owns his or her own unit and shares the common areas (gym, roof, elevator, etc.) with the other co-owners.<\/p>\n
In the case of undivided co-ownership, several people share the same common property (the building) and own a share of the property. There is only one lot number for the property, unlike divided co-ownership. It is generally referred to as a \u00ab\u00a0plex\u00a0\u00bb (duplex, triplex, etc.).<\/p>\n
In the case of a divided co-ownership<\/h2>\n
Now, what should you consider before taking action?<\/p>\n
\u00ab\u00a0The most important thing is to check the contingency fund,\u00a0\u00bb says Charles Brant, Director of Market Analysis at the Association professionnelle des courtiers immobiliers du Qu\u00e9bec. The contingency fund is what covers the expenses of major repairs and replacement of the common areas of the building.<\/p>\n
The coming into force of Bill 16 has made it possible to better supervise the purchase of a condominium and make it more secure. This law requires, among other things, that a maintenance booklet be kept and that a study of the contingency fund be carried out, explains Prot\u00e9gez Vous. The study will mention the amount that it is recommended to deposit in the fund.<\/p>\n
The Civil Code of Qu\u00e9bec stipulates that \u00ab\u00a0the contribution of co-owners to the contingency fund is at least 5% of their contribution to the common expenses\u00a0\u00bb.<\/p>\n
The common expenses are what are commonly called \u00ab\u00a0condo fees\u00a0\u00bb. If they are modest, verify if they will be sufficient to cover the expenses to come in the next few years. If they are too high, make sure that the monthly payments are managed in a reasonable manner. It is a good practice to check financial statements.<\/p>\n
In fact, \u00ab\u00a0it is possible to make the offer to purchase conditional on the verification of certain documents, for example, the minutes of previous years,\u00a0\u00bb says Pierre Goudreau, president of the Ordre des \u00e9valuateurs agr\u00e9\u00e9s du Qu\u00e9bec. This verification is important because it can indicate whether there have been any disputes in the past, what the dynamics of the syndicate of co-ownership are and whether there are any renovations to come in the next few years.<\/p>\n
Also take the time to pay attention to the condition of the building and its common areas. Indeed, Charles Brant explains, \u00ab\u00a0the common facilities of a condominium can be expensive to repair, especially the pool or the elevator, if applicable. Also, if the condominium is of a certain age, it will require more and more maintenance over the years.\u00a0\u00bb<\/p>\n
Other things to consider include: the declaration of co-ownership – the legal document that binds all co-owners and contains the building’s bylaws, your rights and responsibilities, and resale rules – the presence of a special renovation fee, the syndicate of co-ownership’s insurance coverage and the status of the new home warranty, if applicable.<\/p>\n
In the case of undivided co-ownership<\/h2>\n
Buying undivided co-ownership is a different matter. You have to be even more careful,\u00a0\u00bb warns Charles Brant. \u00ab\u00a0Plexes [the majority of condominiums] are older buildings, most of which were built in the early to mid 1900s. They generally need repairs or renovations, so maintenance costs can escalate very quickly.\u00a0\u00bb That’s why it’s important to make sure there’s a contingency fund.<\/p>\n
In the case of undivided co-ownerships, Bill 16 on contingency funds does not apply. It is therefore important to verify if there is one, and if so, to see how it is managed, as well as if it is sufficient for the upcoming maintenance.<\/p>\n
You should also read the undivided agreement, which contains information such as the rights and obligations of each of the occupying parties, the rules for administering the building and the sharing of expenses, as specified by the Chambre des notaires du Qu\u00e9bec.<\/p>\n
Final tips<\/h2>\n
In both cases, thinking about resale value right away can be relevant: does the condominium you are planning to buy contain elements that are desirable and attractive to future buyers? We are thinking here of an outdoor space (balcony, terrace or courtyard), the location of the building (close to services and public transportation), as well as access to a storage space or a parking space.<\/p>\n
The number of bedrooms is also a consideration, according to Charles Brant: \u00ab\u00a0Three-bedroom condominiums are much more desirable because people want space for an office. That’s something to consider if you want the property to maintain some value.\u00a0\u00bb<\/p>\n
Charles Brant concludes by mentioning that in the presence of certain negative points, despite a certain love affair, one should not hesitate to negotiate the sale price. It is not recommended to start this new adventure without having done a due diligence on the management of the syndicate of co-ownership.<\/p>\n
<\/p>\n
Source :<\/strong>\u00a0Article by Shanna Sarrazin-Laverdure on the 24heures.ca on the 12 November of 2021<\/a><\/p>\n
![](\"https:\/\/mcusercontent.com\/93cd80b45544fad91b6b44d60\/images\/4e6f6591-1108-4326-bdd0-44f74a03ea2b.png\")
<\/p>","protected":false},"excerpt":{"rendered":"