Divided vs Undivided Co-ownership

This week I discuss the difference between divided and undivided co-ownership.

I receive a lot of questions on the subject and decided it was time to break down the differences.

Divided co-ownership is very straight forward. You can finance the purchase with as little as 5% down and work with any bank. The unit has its own cadastre (lot number), which means it has its own tax accounts. You can usually rent divided condos with little restrictions, other than a minimum rental period noted in the building regulations.

Undivided co-ownership is a bit different. Think of it as buying shares of a company, with the company being the building. You are purchasing the exclusive right of use of a percentage of the building, but you don't actually own your condo unit. In undivided co-ownerships, there is one tax account for the entire building and you are responsible for your share. You are required to put 20% down as a minimum and the entire building can only be financed by 1 bank. Note that the only 2 banks that finance undivided condos are Desjardins and the National Bank of Canada. Lastly, undivided condos generally have rental restrictions as there are regulations on repossessing should you wish to move in.

Both models come with their pros and cons. I’d be happy to discuss which model would make more sense for you!

LJ Aguinaga
CERTIFIED REAL ESTATE BROKER | LJ REALTIES