Undivided, "a co-op", means that the owners share the same mortgages, rights and obligations.

These are some important tips to know:

You need 25% down

You can only bank with the Caisse Desjardins or La Banque Nationale

You own shares, which may not be split 50%/50%

Sometimes you may have to share the same furnace (heat source)

You don't have to pay welcome tax

There is a transfer tax on the sale

Cheaper taxes because they are divided in half

There is a co-op agreement in place (make sure you see it before you buy). It is a good idea to go through it together with the other owner (s)

Usually one person receives the common bills and collects payment from the other person. Both parties are liable if the taxes do not get paid

There is no tax assessed if the property is held in undivided co-ownership by a corporation, where the transaction is a sale of shares You cannot turn a plex into an undivided if you have a mortgage and a renter.

Because you will be part owners with someone, ta

ke the time to get to know them.

If you are interested in turning your plex into a co-op, you will have to make sure that the apartments are not being rented. They have to be vacant for the deed to take place. It is a process that a specialized notary can do for you. It will take about 2-3 weeks, $900 for the notary fees and about $1000 for the land surveyor.

To turn your plex into a condo, from my experience, it can take well up to nine months. There is a lot more red tape involved, but the outcome is a lot more appealing to most buyers.

One very important note that I found out, you will not be able to evict a tenant. So be very, very cautious. Get in touch with the Régie du Logement to find out exact details.

www.montreal-realestate.ca

Tell Your Friend