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Real estate law

Divided co-ownership (condominium)

The law provides for two types of co-ownership.

Those acquiring the co-ownership of a property must be properly informed of their rights and obligations. The first step is to define the different types of co-ownership.

Divided co-ownership, as the name implies, permits the division of a building into fractions. A fraction may belong to one or more persons. Each owner of a fraction has the exclusive ownership of a private portion of the immovable and has an undivided right of ownership, that is, a share proportionate to the relative value of his fraction, in the common portions of the immovable. The common portions belong to all the co-owners. The declaration of co-ownership may restrict some common portions to exclusive use by a co-owner (e.g. a private balcony adjacent to a private portion may be a common portion for restricted use).

Say, for example, that you buy the second floor in a three-storey condominium. You are the sole owner of the second floor (the exclusive portion). You and your two neighbours on the first and third floors also own shares of the common portions, such as the outside walls, the land, the roof, and so forth.

In the illustration, the grey areas belong to you alone; the white areas belong to all the co-owners.

Each owner of a fraction may hypothecate it (give it as security) to guarantee the repayment of the sums borrowed to purchase it. Each hypothec is separate. Condominium owners are not affected by a neighbour’s hypothecary difficulties.