When purchasing a condominium unit, many buyers question the fairness of the relative value assigned to their share.
When purchasing a condominium unit, many buyers question the accuracy of the relative value assigned to their fraction. It should be noted that within five years of the registration of a declaration of co-ownership, the Civil Code of Quebec allows a co-owner to apply to a court to review the value of their private portion and the distribution of common areas.
Invoking this recourse, two co-owners request a review by the court. The court reminds that the Civil Code of Quebec states that the creator of a co-ownership must establish the relative value of a private portion based on four criteria:
- its nature, meaning the nature and quality of the construction and materials used;
- its purpose, not to be confused with its use, for example, does the fraction have a commercial or residential function;
- its location in the building, such as its orientation or level of sunlight or what floor the fraction is located on;
- its dimensions, for which consideration must be given not only to the area but also to the volume.
Until now, most declarations of co-ownership were limited to stating that the creator had taken into account the four criteria mentioned above. The court rules that this practice does not correspond to what is stipulated in the Civil Code of Quebec and establishes drafting rules regarding condominium fractions and sides with the two co-owners.
From now on, the drafter of a declaration of co-ownership must explain the weighting assigned to each of the criteria, without necessarily having to provide a detailed presentation of the calculations. If a drafter neglects to explain it, the courts will take care of it.
*CA 200-09-008750-140
