Divided co-ownership offers numerous financial and practical advantages that make these properties an attractive option for many buyers, from their lower purchase price in comparison to a single-family home to their well-defined management framework. Are you one of these potential buyers? Would you like to learn more about the process of buying a co-ownership property? Here is some information you may find useful!
Choosing a real estate broker
The first step is to find a real estate broker who is experienced with transactions involving divided co-ownership properties. As the rules surrounding this type of property have become considerably more complex in recent years, it is important to choose a qualified professional who can safely guide you through this particular market. Your real estate broker can also provide useful advice and help you to find properties that meet your specific needs and requirements.
Here are a few things to consider when choosing a broker:
Signing the brokerage contract to purchase
Once you have chosen a broker, you will need to sign a brokerage contract to purchase so that they are authorized to represent you. As of June 10, 2022, a real estate broker is not authorized to represent someone unless this contract has been signed by both parties. This contract allows the broker to advise you based on your particular needs, provide comparables, make an offer on a property and negotiate on your behalf.
This contract establishes the conditions surrounding the association between you and your broker, including the terms of remuneration. In this regard, it is important to be aware that, when the seller of the property is represented by a broker, the latter offers a share of their remuneration to the buyer’s broker. Therefore, if the amount offered by the seller’s broker is equal to or greater than the remuneration stipulated in the brokerage contract to purchase, you will not have any remuneration to pay directly to your own broker(1).
Looking for a co-ownership property
You have now signed the brokerage contract and your broker is on the hunt for a co-ownership property that meets your needs and requirements. Here are a few things to take into consideration during your search.
a) Description sheet
The description sheet of the divided co-ownership property is an essential document that describes the characteristics of the unit and the building’s common areas in detail. Read it carefully to ensure that the unit matches your needs and expectations.
b) Declarations by the seller
The declarations by the seller is a form in which the seller is required to disclose all relevant information concerning the unit and the building, such as works carried out, incidents that have occurred (e.g. water damage or infiltration), any repairs, recent renovations, etc. Study this document carefully in order to have a good idea of the condition of the unit and the building.
c) Declaration of co-ownership
The declaration of co-ownership is a document that establishes the rules and management structure of the co-ownership and the co-owners’ obligations. Be sure to read this carefully to understand your rights and responsibilities as a co-owner.
d) Financial health of the syndicate
It is essential to get a picture of the financial health of the co-ownership before buying. This means consulting insurance policies and finding out about the self-insurance fund. This also means looking at financial statements and getting information about the contingency fund for major works in the future. Finally, it is also important to find out about any unresolved disputes that could entail you having to pay legal or other costs following a future judgement or amicable settlement.
In conclusion, buying a divided co-ownership property may seem simple at first glance, but in reality it is a complex process requiring rigorous checks and expert guidance. RE/MAX is a network of real estate brokers specializing in the sale, purchase and rental of divided co-ownerships throughout Québec. These professionals are able to obtain and review all documentation relevant to the transaction and advise you accordingly. Furthermore, brokers affiliated with RE/MAX’s Coproprié-T program have access to an exclusive training program called Coproprié-T, which has been specially designed for co-ownership. This training allows them to maintain high quality service standards for transactions involving divided co-ownerships.
Good to know! Looking for the assistance of a qualified professional for buying or selling your co-ownership? Look for a broker affiliated with the Coproprié-T program on the RE/MAX website! https://www.remax-quebec.com/en/real-estate-brokers
(1) Remuneration payable by the buyer: Exclusive brokerage contract – Purchase, OACIQ, https://www.oaciq.com/en/articles/remuneration-payable-by-the-buyer-exclusive-brokerage-contract-purchase
Me Julie Smythe, MBA
Legal Affairs Director
RE/MAX Québec
https://www.remax-quebec.com
