Definition
Undivided co-ownership (indivision) is an ownership arrangement where several people (co-owners) own a building together without their right being attached to a physically determined part of the property.
**Distinction from divided co-ownership**: - **Divided (condominiums)**: each unit is separately cadastred, with its own land registry description → each owner can individually mortgage their unit - **Undivided**: the title describes shares (e.g., 50% each) but not physical units delineated in the cadastre → more complex financing
**Financing an undivided share**: - Major institutional lenders (chartered banks) hesitate to finance undivided shares without a solid co-ownership agreement - Requirements: notarized co-ownership agreement (exclusive use of rooms, sale rules, ROFR among co-owners), insurance covering all shares - Rates often less competitive (perceived higher risk) - Private lenders and some credit unions are more open to undivided co-ownerships
**Common use in Quebec**: - Family cottages held jointly among siblings - Collective purchases of rental buildings among friends or family - Old urban 'plex' properties not converted to condominiums
**Dissolution of indivision**: Any co-owner can force the sale of the property in court (partition action) — unless the co-ownership agreement contains a temporary non-partition clause (max 5 years, renewable).