Legally Speaking - Undivided Interest

Buying an Undivided Interest

Buyers considering investing in residential properties that have not been stratified under the Condominium Act should get all the facts before they buy. 


Buyers should be aware that:

  • Purchasers of undivided interests do not actually own a suite. Instead they own a share of the property as a whole.
  • Owners of undivided interests in property may not have the same rights and remedies available to condominium purchasers and owners through the Real Estate Act and the Condominium Act.
  • Owners of undivided interests who have less than 50 per cent ownership may not be considered landlords under the Residential Tenancy Act and may not be legally entitled to evict the occupant in order to use the unit themselves.
  • Owners of undivided interests may be liable should other owners default on the mortgage.
  • Co-owner agreements are contractual in nature therefore disputes may have to be resolved through civil litigation.
  • Consumers need to know how management of the property will take place in the absence of a strata council.
  • Potential purchasers of undivided Interests should assess the maintenance fees, how maintenance will be authorized and what future obligations could develop.
  • Properties sold as undivided Interests may not be required to receive municipal approval and may not meet the same stratified under the Condominium Act.
  • Sales may be on an "as is, where is basis". There may be no possibility of future action against the owner/developer if the building is unsound in any way.
  • If the contract contains a reversionary clause or states that the undivided interest or user agreement can be terminated, it could mean that if the contract is violated, even on a very minor point, the share of property reverts back to the seller.
  • Potential purchasers should always obtain advice from an independent legal counsel and have their own lawyer or notary perform their real estate transfer.

For more information on the following subject you should seek a legal advice from a lawyer.


Jan Ricker on May 29, 2014 5:06 PM posted:
I have a piece of property that is an undivided 1/2 ownership with a deceased man. I have been in contact with the family for over 20 years to get it resolved. Through 3 lawyers all ended in the family NOT responding. We would like to subdivide the property, sell to us, pay their portion of the taxes and maintenance, what ever it takes. The family is doing absolutely nothing. We pay the taxes year after year. Is there anything we can do to either help with paying of the taxes, maintain the property, etc. Thank you Jan
lorene on Jul 6, 2016 9:28 PM posted:
I would be interested in seeing the answer(s) to Jan's question

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