In a real estate transaction (sale of a home, condo or piece of property), the notary works for both the seller and the buyer, even though he or she is chosen by the buyer. As the notary works for both parties, each party must cover the costs associated with the verifications and disbursements made on its behalf.
It is possible to convert a rental building into divided co-ownership (condominium) but the owner of the building must respect certain rules. One of the first steps for the owner is to obtain a document from the municipality where the property is located to determine whether the conversion can take place. The conversion of an immovable to divided co-ownership must also be authorized by the Tribunal administratif du logement (formerly the Régie du logement) if it has or had at least one dwelling in the 10 years preceding the authorization request.
The syndicate of co-owners’ mission is to ensure the property is preserved, maintained and administered.
Dividing the right of ownership of an immovable into fractions is achieved with a notarized declaration of co-ownership. It includes the constituting act of co-ownership, the building by-laws and a description of the fractions.
The private and common portions of a divided co-ownership are governed by a notarized declaration of co-ownership. The buyer must always read and understand it before making a commitment. A notary will help you understand the contents of this very important document.
Property is said to be held in divided co-ownership when it is split into two or more fractions. Each fraction may belong to one or more people. The best known example of divided co-ownership is a condominium building.
Each undivided co-owner is free to sell or transfer their share in the property, unless otherwise stipulated in the agreement. With some exceptions, however, the law allows the other undivided co-owners to turn away the new buyer by refunding the sale or transfer price and expenses. The undivided co-owners must exercise this right within one year of the sale or transfer of that share.
Undivided co-owners, i.e. those who purchase a property together, are considered equal owners unless the act of sale or a co-ownership agreement provides for a different distribution.
Property held in undivided co-ownership has a single cadastre, i.e. a single lot number, but it belongs to several people, the undivided co-owners. None of these undivided co-owners owns a private portion of the property; each owns a fraction of the whole.
Contrary to popular belief, an offer to purchase is indeed a contract. It can be very difficult to change its terms or cancel it. It is therefore essential to ensure that the promise to purchase you are offered contains clauses adapted to your situation. Notaries ensure that the clauses are drafted precisely and clearly to avoid any misunderstandings that neither you nor the seller could have anticipated.
To the extent permitted by law, the parties can agree to expand or reduce the scope of a legal warranty. It is therefore possible to sell without legal warranty if a clause in the contract provides for it. The clause must be properly drafted to avoid any ambiguity. However, sellers can never avoid their personal liability.
Under the law, the seller is bound by legal warranty to the buyer. This warranty includes two elements: