Co-ownership Agreement (Quebec)

A Quebec Co-ownership Agreement (Convention d’indivision) is a legal document that establishes the rules governing undivided co-ownership (indivision) of immovable property under articles 1012 to 1037 of the Code civil du Québec (CCQ). Undivided co-ownership differs fundamentally from divided co-ownership (copropriété divisée or condominium ownership) in which each owner receives a distinct lot registered separately at the Registre foncier du Québec. In undivided co-ownership, all owners collectively share the entire immovable in specified proportions — no physical division of the land or building occurs.

Under art. 1013 CCQ, each co-owner holds a share (part indivise) that is presumed to be equal unless the convention stipulates otherwise. These shares may be expressed as percentages or fractions and must be clearly defined because they govern voting rights in administrative decisions, the proportion of common expenses each co-owner bears, and the distribution of any revenues generated by the property, such as rental income. The right of each co-owner to use and enjoy the property is protected by art. 1015 CCQ, which provides that each may use the property provided they respect its intended purpose and do not infringe on the rights of the other co-owners.

The convention d’indivision is the foundational governance document for the undivided co-ownership relationship. Without it, the parties are left relying solely on the supplementary rules of the CCQ, which may be inadequate for managing disputes about administration, expenses, renovations, or the admission of new co-owners. The duty of good faith under art. 1375 CCQ requires every co-owner to act honestly and with loyalty throughout the duration of the co-ownership. For the convention to be enforceable against third parties — such as future purchasers — it must be published at the Registre foncier du Québec, ideally through a notarial act.

You need a Convention d'indivision whenever two or more persons jointly own immovable property in Quebec without subdividing it into distinct registered lots. This situation arises in a wide range of practical contexts.

Family members who inherit a house, cottage, or investment property together through a succession are the most common users of this agreement. Without a convention, heirs are bound only by the minimal default rules of the CCQ and any one heir may demand immediate partition at any time under art. 1030, potentially forcing a sale at an unfavourable time. A convention that defers partition for up to 30 years — the maximum allowed under art. 1013 — gives the family time to grieve, plan, and eventually decide the property's fate collectively.

Couples who are not married and not in a civil union who purchase property together must document their respective shares and rights in a convention, because unlike spouses they do not benefit from the family patrimony provisions (arts. 414-426 CCQ) that automatically protect equal division of the family home upon separation. For such couples, the convention d'indivision is their primary legal protection.

Friends or business partners who co-invest in real estate — whether a rental duplex, a recreational property, or a commercial building — need this document to govern revenue-sharing, decision-making for major repairs, and the procedure if one investor wants to exit. Parents who add an adult child to title to facilitate estate planning, or siblings who together purchase a property to assist an aging parent, also need the formality this convention provides.

The document should ideally be executed before or at the time of acquisition. A notarized convention published at the Registre foncier creates a public record enforceable against all future purchasers and creditors, giving all co-owners maximum legal protection.

A comprehensive Quebec co-ownership agreement addresses the following key elements. First, the identification of all co-owners with their full legal names, addresses, and respective share percentages or fractions as required by art. 1013 CCQ; these shares determine voting power, expense obligations, and profit distribution and should reflect the actual financial contribution of each co-owner to the acquisition.

Second, the legal description of the immovable including its cadastral lot number, municipal address, and registration details at the Registre foncier du Québec. Third, detailed administration rules specifying which decisions require unanimous agreement of all co-owners — such as selling the property, mortgaging it, or making major structural changes — and which decisions may be made by a simple or qualified majority of shares. If an administrator (gérant) is appointed under art. 1027 CCQ, their powers, remuneration, and removal procedure should be stated.

Fourth, expense-sharing formulas covering municipal and school taxes, insurance premiums, mortgage payments if jointly financed, routine maintenance costs, and extraordinary capital expenditures. Fifth, the right of use provisions per art. 1015 CCQ, addressing how the property is used — whether all co-owners occupy it, whether it is rented out, and how rental revenue is distributed. Sixth, right of first refusal (droit de préemption) clauses giving existing co-owners priority to buy the departing co-owner's share at the offered price before any sale to a third party can occur.

Seventh, partition rights and restrictions per art. 1030 CCQ: while any co-owner may demand partition at any time by default, the convention may defer this right for a defined period up to 30 years. Eighth, insurance requirements ensuring adequate coverage is maintained. Ninth, dispute resolution mechanisms — negotiation, mediation, and arbitration — before costly litigation. A good faith clause per art. 1375 CCQ and the applicable Quebec law clause complete the document.