All About Divided and Undivided Co-ownerships

You want to live in a co-ownership but the vocabulary used in this field is confusing? This field has its own vocabulary, which can be difficult to understand, especially when you are new to this environment.

In this article, you will discover the types of co-ownership. Are you interested in a home located in a divided or undivided co-ownership? What are the differences between these types, and what should you know before starting the acquiring process?

The Divided Co-ownership

In a divided co-ownership, every private portion is independent from the rest and has its own lot number in the cadastre.

The cadastre (French only) is a public registry in the form of a map; it displays the property on which the owners’ land rights are based. To identify them, every property in the cadastre gets assigned a lot number. The cadastre also includes the dimensions and the size of the unit, and its position in relation to other properties.

When you acquire a divided co-ownership, you are buying a private portion (your unit, your parking space) and a percentage of the common portions of the property. In this co-ownership, you can sell your unit without notifying the other co-owners beforehand. Moreover, a syndicate of co-ownership is mandatory to properly manage the property.

In short, when you acquire a divided co-ownership, you are buying:

  • A private portion: your unit and your private parking space;
  • A percentage of the common portions: the hallways, the staircases and elevators, the pool, etc.

The Undivided Co-ownership

In an undivided co-ownership, many people (co-owners) own the land rights of the entire property. Thus, when you acquire this type of co-ownership, you are buying a percentage of the entire building.

Unlike the divided co-ownership, this co-ownership does not have a syndicate. Rather, an undivided co-ownership agreement determines each co-owner’s rights and their shares. This agreement is not mandatory, but it is highly recommended.

Finally, in this co-ownership, the entire property has its own lot number in the cadastre. According to their respective shares of the property, each co-owner pays their part of the school and municipal taxes, and of the building expenses.

In short, when you acquire an undivided co-ownership, you are buying:

  • A percentage of the property.

An indivision agreement is used to administer the rights of all owners and establish the rights of exclusive use assigned to each of them. The agreement can grant you the rights of exclusive use to a part of the property like your unit or your parking space.