Undivided co-ownership: A solution to consider carefully for homeownership access

Based on an article from the Journal de Montréal

Undivided Co-ownership: A Solution to Consider Carefully for Access to Homeownership

Undivided co-ownership is sometimes presented as an option for accessing property ownership, but it is not a universal solution. That said, it can represent an interesting opportunity for some first-time buyers, provided they fully understand its particularities.

Unlike divided co-ownership, where each unit has its own cadastral identification and is governed by specific rules in the Civil Code of Québec, undivided co-ownership involves joint ownership of a single building. Co-owners jointly own the entire property, which is taxed by the municipality as a single unit.

As explained by Me Francesca Lasorsa of the firm De Grandpré Jolicœur: “In undivided co-ownership, it’s a single lot, a single building. You own the entire lot along with other people.”

Although the number of co-ownership transactions increased by 15% in the first quarter of 2025 compared to the same period in 2024, according to the Québec Professional Association of Real Estate Brokers, interest in mortgage financing for undivided properties appears to be declining. Both Desjardins and National Bank, two institutions offering loans for this type of purchase, report a decrease in applications over the past few years.

This reduced interest is partly due to stricter financing requirements. Since mortgage loans for undivided properties are not insured by the CMHC or Sagen, a minimum down payment of 20% is required, which can be a significant barrier for many buyers.

For those with the necessary liquidity, however, undivided co-ownership can allow, for example, the purchase of a duplex with friends or family members. It is nevertheless essential to take proper precautions.

Me Yves Joli-Cœur points out that, despite the absence of certain legal requirements (such as the obligation to establish a contingency fund or maintain a maintenance logbook), a well-drafted undivided co-ownership agreement can offset these gaps by effectively governing the management of the property.

Finally, it is important to note that undivided co-ownership is not irreversible. With the consent of all co-owners and the municipality, it is possible to convert an undivided property into divided co-ownership later on.

RGCQ article using information from the Journal de Montréal.