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Real estate law

Indivision agreement

The Civil Code of Québec provides that each undivided co-owner may hypothecate his or her share of the property alone. The other co-owners are thus in no way liable should the hypothecary debtor default. The law even gives them special rights.

Each co-owner is free to sell or transfer his or her undivided share in the property, unless otherwise stipulated in the indivision agreement. However, the law provides, with some exceptions, that the other undivided co-owners may, within certain time limits, exclude the new purchaser by refunding the sale or transfer price and expenses. The undivided co-owners must exercise this right of redemption within one year from the sale or transfer of the share.

The indivision agreement may stipulate a maximum term of 30 years. However, the agreement may be renewed.

The agreement may cover the following:

• the term of the agreement

• rights and obligations of the co-owners with respect to the enjoyment of the premises

• the sharing of maintenance and renovation

• the sharing of expenses

• the ownership of improvements

• restrictions on selling

• rules for administering the property

• rules governing division on termination of the indivision agreement.