Co-ownerships: Which type is right for you?

January 22, 2021 Market

If you’re in the market for a condo, whether as an investment or as your next home, these are some important factors to consider before taking the leap.

1- Co-op

A cooperative, better known as a co-op, is a type of residential housing where residents are shareholders in the company (building) rather than owning their units outright. This non-traditional method of acquiring property can be more affordable on a monthly basis as the taxes are calculated based on the total value of the building rather than by unit.

Factors to consider

  • What you are selling is shares in the company and this is often impossible to finance
  • You should not rent the unit as it does not fall under the rules of the Régie du Logement
  • Common fees may be higher than those paid to a standard condo association


  • Be sure to review the co-op’s financial situation and history prior to getting involved, as you are essentially buying shares of a company
  • Be sure to understand exactly how the co-op works and how it is managed
  • Contact me for more in-depth information!


2 – Divided Co-ownership

A divided co-ownership is a property in which each unit is independent of each other and has its own cadastre number. If you choose to buy a unit in a divided co-ownership, you will own your respective unit as well as a portion of the building’s common areas.
Factors to consider
  • Each owner has their own mortgage and property tax bill
  • You are able to sell your unit without notifying the other building co-owners
  • It is mandatory for a co-ownership syndicate to manage and oversee the admin
  • Be sure to review the reserve fund of the syndicate and the declaration of co-ownership
  • Be sure to review the history of building maintenance and renovations
  • Contact me if you are looking to buy a condo!

3 – Undivided Co-ownership

An undivided co-ownership is a property owned jointly by all owners. When buying a unit in an undivided co-ownership, you are buying a percentage of the building, which has one cadastre number. Owners are responsible for their respective mortgages while taxes are a shared responsibility.

Factors to consider
  • You are responsible for your % of the taxes as well as the other co-owners taxes if they don’t pay
  • Owners are jointly responsible for repairs, maintenance and insurance
  • They require a more substantial downpayment of 20%
  • Many ownership agreements for undivided condos often forbid owners from renting their units
  • Be sure to weigh the pros and cons of divided/undivided based on your needs
  • Contact me to discuss further!


In the market for a condo?

If you are interested in buying or selling a condo in Montreal or have any questions about the above information, it would be my pleasure to assist you.
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