Foreword

To ensure that a transaction involving a co-ownership property is carried out in compliance with the requirements of the Real Estate Brokerage Act and its regulations, it is important to understand every aspect of this type of transaction. This guide is intended as a toolkit to answer questions that may arise in your day-to-day dealings involving co-ownership transactions.

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The evolution of co-ownership

In Québec, co-ownership began on November 28, 1969 when the legislator sanctioned the first legislative draft framing this concept of collective housing. The content of this legislation was strongly inspired by the Loi du 10 juillet 1965 in France. In the beginning, co-ownership properties were most often undivided. The market for divided co-ownership offering turnkey projects developed in the 1980’s. In 1994, the Civil Code of Québec established certain standards of practice to ensure the proper operation of this type of housing. From 2006 to 2016, divided co-ownership properties increased by 77%. Today, they are the housing option of choice of many homeowners.

On December 5, 2019, the Act mainly to regulate building inspections and divided co-ownership, to replace the name and improve the rules of operation of the Régie du logement and to amend the Act respecting the Société d’habitation du Québec and various legislative provisions concerning municipal affairs (Bill 16) was passed in the National Assembly, then given assent on December 11. One of the purposes of this act is to reform the Administrative Housing Tribunal, improve the rules governing divided co-ownership, and establish a certification process recognizing the competence of home inspectors. The measures will be implemented over a period of one to three years, i.e. from 2021 to 2024 assuming the regulation is adopted in 2021.

The provisions of Bill 16 are presented in the various sections of this guide.

Certain commercial immovables are also held in divided co-ownership, including office buildings, retail establishments, hotels and others.

In addition, there are mixed co-ownership properties that combine residential and commercial units.

Co-ownership offers many attractive advantages, including lower costs and reduced maintenance, but it is also a mode of ownership that carries specific constraints.