I get asked frequently about the declaration of co-ownership. Notaries and lawyers could easily develop on this matter for hours. I’ll limit myself to the important aspects of this legally binding document is essential to co-ownership since it governsthe relations between co-owners and the board of directors concerning all matters related to the property. A declaration co-ownership is divided in three distinctive parts:
- The constituting act : this part contains the most important elements such as the definition of private and common portions, the share of every stakeholder, thus the share of the common expenses and the number of the votes at the general meeting, and identification of the rights and responsibilities of the board of directors and the association of co-owners.
- The building bylaws: this part contains the rules regulating the administration and operation of the building, the rules defining the enjoyment, use and maintenance of private and common portions, and the procedures for the payment of the condo fees and contribution to the contingency fund, i.e. money set aside to provide financing for major repairs.
- The description of the fractions: this part contains the cadastral designation of the private and common portions of the building and a description of the real rights affecting the building.
These are only the basic notions to understand the declaration of co-ownership. When buying off plan, Annex A (information notice) contains all the important information used in the writing of this document. The declaration is only effectivet when the co-ownership begins; i.e. when the first co-owner moves into the building.
Here are some useful links to better understand the declaration of co-ownership