In Quebec, indivision occurs when multiple individuals jointly own a property without having divided their shares. This can happen, for example, after an inheritance or when multiple people purchase a property together. While indivision allows co-owners to share ownership, it can become problematic if the parties have disagreements or if one of the co-owners wants to liquidate their share. Fortunately, Quebec law provides various ways for an individual to exit an indivision.
Ways to get your property share in case of indivision
The most straightforward way to get out of indivision is through a mutual agreement among co-owners. This involves the co-owners deciding to sell the property and dividing the proceeds based on their shares, or one co-owner buying out the others’ shares. In many cases, this can be the least costly and most amicable solution. It avoids the lengthy and often contentious process of going through the courts, while ensuring that all parties receive fair compensation for their portion of the property.
However, when an agreement cannot be reached, a co-owner has the legal right to demand partition of the property. Under the Civil Code of Quebec, no one can be forced to remain in indivision against their will. If one co-owner wishes to exit and the others do not agree to a buyout or sale, the co-owner can request that the property be divided by selling it and splitting the proceeds. This is often done through a court order if the other co-owners oppose the partition. The court will then oversee the process to ensure the division is equitable.
In some cases, indivision can be governed by a formal indivision agreement, which might set specific rules on how co-owners can sell or transfer their shares. These agreements often include clauses that dictate a minimum time for remaining in indivision or require specific processes for selling shares. If such an agreement exists, the co-owners must follow its terms when seeking to exit the arrangement. Legal advice is often recommended to ensure that all actions comply with both the indivision agreement and Quebec law.
Allen Madelin Lawyers provide consultations and representation in real estate cases. In need, please contact us by phone: 1 514 904 4017 or by email: [email protected].
