In Quebec, there are two types of co-owned properties: divided and undivided.
In this article, we cover:
- What is a divided co-ownership?
- What is an undivided co-ownership?
- The differences between divided vs undivided co-ownerships
- The pros and cons of divided vs undivided co-ownerships
- Which is best, a divided or undivided condo?
To start with, what is a divided co-ownership?
What is a divided co-ownership?
A divided co-ownership (or divided condo) is the most common type of condo ownership in Quebec. In this setup each owner holds exclusive ownership of their individual unit (for example, apartment #203) and shared ownership of the building’s common areas, such as the lobby, roof or parking lot.
Owners of units in a divided condos will:
- Have their own land registry number (or lot number) for their unit or units.
- Pay their own property taxes (municipal and school taxes)
- Can go to any bank for their mortgage
- Can put as little as 5% down on the property
- Can go with any insurance policy
The graphic below gives you a visual illustration of what a divided condo looks like.
What is an undivided co-ownership?
Undivided co-ownership are like companies in that owners of the undivided condo will own a share of the building. For example, you might buy into 3% of the ownership of the building. In this case you would be responsible for 3% of the building. For example, you are responsible for 3% of the tax account for the entire building. This type of co-ownership is much more like being in partnership with the other owners than in the divided condo.
The differences between divided vs undivided co-ownerships
There are several major differences between divided and undivided condos. These are included in the summary table below.
| Divided co-ownership | Undivided co-ownership | |
| Best for | Buyers seeking independence and resale flexibility | Families, friends or investors buying together to share costs |
| Co-ownership type is like | Owning an individual condo unit in a managed building | Sharing ownership of an entire property with private usage agreements |
| Size of down payment (minimum) | ~5% | ~20–30% (usually 20% for owner-occupied, 30% for rental) |
| Banks that finance | Most major banks and lenders | Only two – Desjardins and National Bank |
| Key documents | Declaration of co-ownership (sets out condo rules, shares, and maintenance) | Indivision agreement (defines rights, shares and usage) |
| Unit cadastral numbers | Yes – each unit has its own title | No – one title for the entire property |
| Management | Managed by a syndicate of co-ownership (condo association) | Managed collectively by co-owners |
| Contingency fund | Mandatory reserve fund (for major repairs) | No formal requirement, relies on co-owners’ savings |
| Insurance fund | Building insured by syndicate; owners insure their own unit | Shared insurance arranged by co-owners |
| Owner expenses | Each owner pays own expenses and taxes | Collective account for shared bills and mortgage |
| Ability to sell | Easy – can sell or mortgage your unit independently | Harder – other co-owners often have first right of refusal |
| Options to rent | Usually allowed, subject to condo rules | Usually allowed, but must follow indivision agreement |
| Ability to renovate | You can renovate your unit freely (within condo bylaws) | Only minor interior work; major changes need co-owner approval |
| Repossession of dwelling | Yes – lender can repossess your specific unit | No – because the whole property is shared |
| Condo fees | Normally monthly condo fees paid to syndicate | Usually higher or more irregular – depends on agreements |
We group the above differences between divided and undivided condos into seven categories. These are:
- Owner finances
- Contracts
- Building management
- Building finances
- Renting divided vs undivided condos
- Repossession
Let’s dive into the differences in these condo types now.
Owner finances
When it comes to owner finances, one of the main differences between divided and undivided condos is the size of downpayment required for purchase. Divided condos typically require as little as a 5% downpayment, whereas undivided condos often require a 20% downpayment. Furthermore, whilst almost any bank in Quebec will give you a a mortgage for a divided condo, there are only two banks in Quebec that finance undivided condos. These are Desjardins and National Bank.
The way this works is that either Desjardins or National Bank will have the mortgage contract for the entire building. Buyers must then take out their individual mortgage through the same bank, for their percentage share of ownership in the property. This means that the banks will own one master mortgage contract with all the individual owners of the property.
In practice, because the bank owns on master mortgage agreement with the owners of an undivided co-ownership, this means that the bank puts some additional restrictions or mortgage contracts, compared to mortgages used to buy divided condos. These include:
- All co-owners must borrow from the same institution. The bank won’t allow one owner to refinance or sell their share freely, since the whole property is the collateral.
- Before financing, the lender must approve the indivision agreement to make sure it limits risk. For example, by requiring that the co-owners give the bank notice rights before resale.
- The bank also has veto rights over certain things. For example, major modifications to the building, refinancing or structural changes to units often require the bank’s written consent. This protects its investment in the property as a whole.
- Technically, the bank can claim against the entire property because it’s a single legal unit. In practice, the bank usually negotiates with the other co-owners or forces a collective sale if things get serious.
So in short, the bank is acting almost like a “financial guardian.” It doesn’t manage the property day-to-day, but it does control the financing, approve the ownership agreement and enforces rules to ensure the property stays stable and all owners remain financially aligned.
Contracts
The main contracts that you need to understand when buying a divided vs undivided condo are shown in the table below. As you can see there are major difference in terms of which documents govern how the co-ownership organizes itself to make decisions and what owners rights are to do things like rent or renovate individual their condo units.
| Contract Type | Divided Condo (Copropriété divisée) | Undivided Condo (Copropriété indivise) |
| Main governing document | Declaration of Co-Ownership (Déclaration de copropriété) – Defines each private unit, the common areas and ownership shares. | Indivision Agreement (Convention d’indivision) – Defines each owner’s share, rights, exclusive use areas, and cost-sharing rules. |
| Daily rules | Bylaws (Règlement de l’immeuble) – Covers building rules (noise, pets, renovations, etc.). | Often included within the indivision agreement itself; sets out similar lifestyle and usage rules. |
| Purchase contract | Promise to Purchase (Promesse d’achat) – Adapted for divided co-ownership. | Promise to Purchase (Promesse d’achat) – Adapted for undivided co-ownership. |
| Financial / Management documents | Minutes & Financial Statements of the Syndicate – Show building finances, reserve fund, and major repairs. | Co-Ownership Loan Agreement – Shared mortgage contract with the bank for the entire property. |
| Optional supporting documents | Insurance and Contingency Fund Statements – Verify coverage and building health. | Occupancy Agreement – May specify which co-owner occupies which unit, if not detailed in the indivision agreement. |
Building management
Owning a divided co-ownership is like owning a single unit inside of a building. Whist you are responsible to pay your own property taxes (municipal and school) and the interior of your own unit, the overall building is managed by a syndicate of co-ownership (also known as a condo association). In this case, the syndicate of co-ownership must legally be managed by a board of directors (conseil d’administration) elected by the co-owners.
The condo’s board of directors is legally responsible for the property and is usually made up of volunteers, often co-owners themselves. The board or directors does normally appoint a property management company who acts under their authority of the board to handle day-to-day operations but, does not hold a seat on the board or have voting rights.
Individual unit owners then pay a monthly fee that is used to cover shared expenses such as building management fees, building insurance, maintenance of common areas, snow removal and contributions to the contingency fund for future repairs.
By contrast, an undivided co-ownership is more like a partnership where each “partner” owns a share of the entire property rather than a separate unit. The co-owners sign an indivision agreement that spells out who occupies which apartment, how expenses are shared and how big decisions are made.
In an undivided co-ownership, there is no condo syndicate or property manager. Instead the co-owners themselves handle everything, from maintenance and insurance to approving renovations and collecting contributions for shared costs. As with divided condos, co-owners will typically appoint a property manager, who will present key decisions about building maintenance to them. However, unlike a divided co-ownership, this company would be appointed by vote rather than by and a smaller group of directors.
Building finances
There are major differences in the way building finances are managed in a divided vs undivided co-ownership.
In a divided co-ownership, the building is treated like a small organization, with its own legal structure and finances. Day to day management is the responsibility of the syndicate of co-ownership (condo association), led by a board of directors. Any condo fees paid by the co-owners are the put into the syndicate’s bank account, separate from individual owners. This money is then used to pay for day-to-day operating expenses (cleaning, electricity, snow removal, etc.), building insurance and professional services and a mandatory contingency fund for major repairs.
In regards to reporting, the syndicate must keep detailed financial statements and share them with owners annually. As we have already seen, tax wise, each owner pays their own municipal and school taxes directly.
In contrast, undivided co-ownerships do not have a syndicate or a board of directors and there is no legal entity managing the money. Instead, everything is handled jointly between the co-owners. Therefore, the co-owners manage themselves according to the indivision agreement. Each of the co-owners then makes a payment towards for their share of the building’s common expenses(insurance, taxes, maintenance).
The payment is paid into a shared bank account that is managed by an appointed representative. Decisions on large expenses usually require a majority or unanimous vote, depending on the indivision agreement. Lastly, the property gets one single municipal tax bill, which the co-owners split according to their ownership shares.
Renting divided vs undivided condos
In an undivided co-ownership, the whole property is tied to one collective mortgage with the same bank. This means that all co-owners share the same mortgage, the bank wants to limit its risks. The bank therefore thinks that if one co-owner rents out their space to a tenant and something goes wrong (e.g. the tenant damages the property or stops paying), the bank’s collateral i.e. the whole building could be affected.
So as to protect itself, the bank adds a clause in the mortgage contract that says:
- “No part of the property may be rented to third parties while the mortgage is in effect.“
This is why most indivision agreements prohibit rentals by default, so as to align with the bank’s terms. Furthermore, even if all co-owners agree to rent out part of the property, they usually can’t do it legally if there’s still a mortgage, unless the bank gives special written permission (which is rare).
By contrast, in divided condos, each unit owner can generally rent out their condo, unless the declaration of co-ownership or condo bylaws restrict it (for example, requiring minimum lease durations or prohibiting short-term rentals like Airbnb). The board enforces these rules, it doesn’t invent them, but it can interpret and apply them, such as approving or rejecting tenant applications.
Renovating divided vs undivided condos
When it comes to renovations, divided and undivided condos work very differently.
In a divided co-ownership, owners have much more freedom to renovate the inside of their units. For instance, owners can usually make cosmetic or layout changes like painting, flooring or even re-modeling their kitchens, bathrooms, bedrooms etc. all without asking for approval. However, any work that affects the building’s structure, plumbing, electrical systems or common areas (like balconies or exterior walls) must be approved by the condo’s board of directors and done according to the declaration of co-ownership.
In an undivided co-ownership, things are stricter. Since the entire property is legally shared, even small changes to the interior of an apartment can impact the other co-owners. As such, co-owners need to follow the indivision agreement, and major renovations require the consent of all co-owners or, in some cases, the mortgage lender. As a result, renovations can be slower and require more coordination.
Repossession of dwelling
In a divided co-ownership, each condo unit has its own mortgage and property title. This means that if if an owner stops making payments, the bank can repossess that individual unit. In this case, the lender will enforce its hypothec (mortgage) and take ownership of the unit. The lender will then sell the unit to recover the debt. Other condo owners in the building are not directly affected by this.
In an undivided co-ownership however, things are much more complicated. The entire building is considered one single property. As such all co-owners share the same overall mortgage. If one co-owner defaults, the lender technically has a claim over the entire property, not just that person’s portion. That being said, in practice lenders will try to work with the other co-owners to cover the missed payments or buy out the defaulter’s share. If that fails, the bank can seize and sell the entire building, even if the others have paid their share.
Pros and cons of divided co-ownership vs undivided co-ownership
In this section, we cover the pros and cons of divided co-ownership vs undivided co-ownership.
Pros and cons of divided co-ownership
Divided condos offer the independence and flexibility of true homeownership, combined with the convenience of shared building management.
Owners of divided condos own their units outright, can sell or rent their units easily and have more freedom to renovate and personalize the interior of their home. Financing is straightforward and condo associations handle most of the building’s maintenance and insurance. This makes it a hands-off option for busy professionals or investors looking to buy and rent. The trade-off is that divided condo owners pay monthly condo fees and must follow the building’s declaration of co-ownership, which can limit things like short-term rentals or exterior modifications.
Buyer Note
Pros and cons of an undivided co-ownership
Undivided condos are more like partnerships than individual ownership.
All owners share ownership of the entire property with other co-owners, each having exclusive rights to occupy a specific unit. These properties are usually more affordable to buy into but require a larger down payment and come with tighter restrictions on financing, renting and renovations. Since there’s no condo syndicate, all decisions from maintenance to major repairs, are made collectively. This means strong cooperation among co-owners. This setup can work well for families, close friends or long-term co-owners who value shared responsibility and lower entry costs over flexibility and resale ease.
Conclusion: Divided vs undivided co-ownerships, which is better?
Choosing between a divided and an undivided co-ownership really depends on your goals, finances, and lifestyle.
If you want independence, easy financing and long-term resale or rental potential, a divided condo is usually the smarter choice. You’ll have more control over your unit, simpler dealings with lenders, and clearer rules through the declaration of co-ownership.
On the other hand, if you’re looking for a more affordable way to buy into the market, perhaps with family members or close friends, an undivided condo can be appealing. The lower purchase price can make ownership accessible, but it comes with trade-offs: higher down payments, fewer financing options, and the need for strong collaboration among co-owners.
