Undivided Co-Ownership

 

The jurists affiliated with PSP Légal can help you when you are experiencing difficulties related to undivided co-ownership.

Also : Divided Co-Ownership

Expertise / Construction and Real Estate Undivided Co-Ownership

Whether you’re a future buyer of undivided co-ownership or a current owner of an undivided property, we’re here to help!

While many questions can be answered with the help of the guides, sample letters and forms in our legal toolkit, an independent jurist affiliated with PSP Legal will always be happy to help you by answering any questions you may have.

Of course, if you prefer to have an experienced practitioner take charge of your situation and intervene directly and quickly on your behalf, you can also request that one of the independent jurists affiliated with PSP Legal represent you by clicking here.

 

What is undivided co-ownership?

According to article 1010 al. 2 of the Civil Code of Québec, undivided co-ownership implies that the right of ownership in a property is not accompanied by a material division of that property.

Indivision may arise from a contract, a judgment or by operation of law. Legal or testamentary succession often leads to a state of undivided co-ownership between the heirs. This co-ownership lasts until the property is divided. The property in undivided co-ownership may be of different kinds: it may be movable or immovable, tangible or intangible.

Undivided co-ownership is therefore a property right that is shared between several people who own the same immovable property, without it being physically divided. The undivided co-owners, or indivisaires, own a share in the entire immovable.

In undivided co-ownership, there is no syndicate of co-owners as in divided co-ownership. An undivided co-ownership agreement administers the rights of all owners and establishes the exclusive use rights attributed to each of them. However, this type of agreement is optional, despite its considerable importance.

The undivided co-ownership agreement may cover such matters as :

  • the duration of the agreement (maximum 30 years) ;
  • the rights and obligations of undivided co-owners with regard to enjoyment of the premises,
  • the sharing of maintenance and renovation obligations ;
  • sharing of expenses;
  • ownership of improvements;
  • restrictions on sale;
  • rules governing administration of the property;
  • rules governing partition in the event of termination of indivision (the undivided co-owners may, in writing, agree to defer partition of the property until the expiry of the term of indivision).

 

Rights and obligations of co-owners.

The undivided co-owners are obliged to manage the property jointly, unless they entrust the management of the property to a manager. The undivided co-owners are also responsible for school and municipal taxes, as well as building charges, in proportion to their respective shares. They also have the opportunity to demand partition in order to end the indivision.

The undivided co-owners have a right of assignment (i.e., the right to transfer their share), of withdrawal (i.e., the right to exclude a third party who would like to be part of the indivision) and of subrogation. They also have the right of use and enjoyment of the common property, i.e. each undivided co-owner has the right to use the common parts of the building, without altering their destination or prejudicing the rights of the other undivided co-owners. Each undivided co-owner is entitled to reimbursement of expenses incurred to maintain the undivided property.

It is also possible to include a penalty clause in the undivided co-ownership agreement to ensure that the obligations of each undivided co-owner are respected. However, this clause may be reduced by the Court if it proves to be abusive.

 

How we can help

Our legal toolkit includes a variety of online resources and links to templates and guides to help you better understand your obligations.

However, should the Legal Toolkit prove insufficient in your situation, you can obtain additional assistance by speaking with one of PSP Legal’s affiliated jurists:

Of course, if you prefer to have an experienced practitioner handle your situation, you can always request that one of the independent jurists affiliated with PSP Legal intervene on your behalf by clicking here. He or she will then be able to intervene directly and rapidly on your behalf by:

  • Preparing, negotiating and drafting applications, procedures or any other legal documents related to your situation;
  • Assisting and advising you on your legal rights and obligations;
  • Representing you before the courts when legal action is taken;
  • Guiding you through the choices available to you, leading to a fair and satisfactory solution.

 

PSP Legal, because you deserve expert advice!

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