Merging or Dividing Condo Units in Quebec

In a divided co-ownership, merging two adjacent condos or dividing a large unit into two independent fractions can address practical needs such as family reconfiguration, value optimization or adaptation to a specific use. These projects nevertheless affect sensitive elements such as the declaration of co-ownership, relative values, common expenses and even the building’s destination. They therefore require careful preparation and alignment with the Civil Code of Quebec (C.C.Q.).

This article outlines the key steps, approvals to obtain, and financial and administrative impacts for the board of directors (board) and the syndicate. If you are considering merging condo units in Quebec or, conversely, dividing a unit, here is a practical guide adapted to the Montreal context.

Merging vs. dividing: what does it actually involve?

• Merging units: two adjoining fractions are combined to create one larger unit, with a new lot/fraction number and recalculated relative values. Access points, partitions, mechanical systems and fire separations must be reviewed by professionals.
• Dividing a unit: one fraction is split into two distinct new fractions. This involves architectural and mechanical plans, updated civic addresses or unit numbers, and a review of the private portions and, where necessary, internal servitudes or rights of way.

Depending on the declaration of co-ownership and municipal regulations, these projects may affect:

• The private portions (plans and area);
• The common portions (for example, openings in load-bearing or fire-rated walls, and emergency exits);
• The relative values of the fractions and, consequently, the allocation of common expenses and contributions to the contingency fund.

Architectural feasibility and building compliance must be confirmed before any vote. A study by an architect and, where necessary, a structural or building mechanical engineer remains essential.

Legal framework, approvals and required votes

The C.C.Q. governs changes to fractions, updates to the declaration of co-ownership and decision-making by the meeting of co-owners. Depending on the scope of the project (for example, if the relative values of the fractions, the description of the private portions or the building’s destination are affected), a resolution passed by a simple majority, a qualified majority or, more rarely, unanimity may be required. Refer to the “Divided co-ownership” section of the Civil Code of Quebec for the specific rules on majorities and amendments to the declaration (see C.C.Q., divided co-ownership):

• LégisQuébec – Civil Code of Quebec, divided co-ownership

In practice:

• The board prepares a technical file (preliminary design) and a legal file (analysis of the declaration of co-ownership and the by-laws of the immovable) to determine the applicable majority and the clauses that must be amended.
• A meeting (annual general meeting or special meeting) is called with a detailed notice of meeting, including plans and the impacts on relative values, common expenses and the contingency fund. Quorum, voting rights and proxies must be respected. The minutes must accurately reflect the resolutions and voting results.
• Amendments to the declaration of co-ownership and the description of the fractions are signed before a notary and published in the land register to make them enforceable against third parties.

On the municipal side, dividing or merging units generally requires a permit and sealed plans. The work must be carried out by contractors holding the appropriate licences. Consult the RBQ for requirements relating to licences and contractor compliance:

• RBQ – Contractor licence

The syndicate must also verify compliance with the borough’s zoning by-law (exits, parking, soundproofing and density). If fire-rated or structural elements are modified, additional requirements (engineer’s plans, testing and inspections) may apply.

Practical steps and documents to prepare

1. Feasibility study
   Site survey and verification of load-bearing walls, fire separations and systems (HVAC, plumbing and electrical).
   Reports from an architect and, where necessary, engineers, specifying the work and the impacts on the common portions and private portions.

2. File for the board and preliminary consultation
   Analysis of the declaration of co-ownership and the by-laws of the immovable by a legal professional.
   Estimate of the impacts: relative values, common expenses, access, sound, safety, parking and storage.
   Communication plan for co-owners (visualizations, impact summary, projected schedule and measures to reduce nuisances).

3. Calling and holding the meeting
   Compliant notice of meeting, technical documents made available in advance, and a clearly worded resolution (with scenarios for recalculating relative values and contributions to the contingency fund).
   Presentation at the meeting; question period; vote held according to the applicable majority.
   Preparation and signing of detailed minutes.

4. Notarial work and publication
   Preparation of deeds amending the declaration of co-ownership and the description of the fractions (new lot numbers, where applicable).
   Publication in the land register to make them enforceable against third parties.

5. Permits and execution of the work
   Submission of plans, obtaining the municipal permit and coordinating inspections.
   Hire licensed contractors; post permits and comply with the work hours set out in the by-laws of the immovable.
   Quality controls and permit closures at the end of the project.

6. Administrative and insurance updates
   Update of the co-ownership register, unit records and list of co-owners.
   Adjustment of relative values, billing records and the annual budget.
   Notice to the syndicate’s insurer and the co-owners’ insurers; update of insured amounts and deductibles.
   Update of the maintenance logbook / EUC and the contingency fund study if the building’s physical parameters change.

To structure these steps, support with administrative management and operations management can speed up the project and reduce risks:

• multiRent services – administrative management
• multiRent services – operations management

RGCQ publishes useful references on planning and holding co-ownership meetings:

• RGCQ – Resources and best practices

Financial, tax and insurance impacts

• Relative values and condo fees: merging or dividing changes the relative value of the fractions, which may lead to a new allocation of common expenses. Expect adjustments to the budget, calls for funds and contributions to the contingency fund. An accounting review at the beginning of the following financial year is recommended.
• Contingency fund: if the total area of the private portions changes, the allocation method may need to be recalibrated. The contingency fund study may need to be updated to reflect the new configuration and projected wear.
• Mortgages and creditors: merging or dividing may require the consent of mortgage creditors and the discharge or registration of new hypothecs on the modified fractions. Anticipate notarial fees and delays.
• Taxes and duties: a division creates new taxable units; a merger may change the property assessment. Also inquire about whether real transfer duties apply (depending on the nature of the deeds and transfers). Refer to Revenu Quebec:
  • Revenu Quebec – Real transfer duties
• Insurance: promptly notify the syndicate’s insurer and validate the impacts on the policy covering the common portions and on the co-owners’ insurance obligations. Updated certificates of insurance may be requested before and after the work.

To update relative values, the budget and financial statements, structured financial management will help you avoid variances during the year:

• multiRent services – financial management

Governance: transparency, safety and quality execution

• Transparency: share plans and impacts early, including temporary nuisances (noise, dust and traffic through the common portions). Document everything in the minutes and the syndicate’s records.
• Safety and compliance: require licensed contractors, proof of liability insurance, methods for protecting the common portions and a waste management plan. Verify RBQ compliance where necessary.
• By-laws of the immovable: remind everyone of work hours, elevator use, loading dock reservations and internal penalties for non-compliance.
• Delivery and closeout: require certificates of compliance, as-built plans, warranties, and update the maintenance logbook / EUC.
• Ongoing communication: plan progress emails, lobby notices and a contact line for complaints. This reduces tensions and makes the project easier to accept.

FAQ – Frequently asked questions

Q1. Do all co-owners have to agree to merge or divide a unit?
Not always. It depends on the elements affected (relative values, description of the private portions and the building’s destination). The C.C.Q. provides for different majorities depending on the nature of the amendments. Confirm the applicable majority before calling the meeting (see the C.C.Q., divided co-ownership, on LégisQuébec).

Q2. How long does the process take?
Depending on the complexity, generally allow a few months between the preliminary design, the meeting, notarial processing, permits and the work. Municipal timelines and the bidding period affect the schedule. Plan a realistic timeline and communicate it.

Q3. Can a unit be divided without an architect?
Rarely. As soon as there is a redistribution of space, openings, fire separations, exits, mechanical systems or acoustic impacts, an architect and possibly engineers are required. The municipality will require sealed plans, and the insurer will value technical documentation.

Q4. What should we do if the declaration of co-ownership appears to prohibit merging or dividing?
An amendment to the declaration of co-ownership may be considered; however, this requires the majorities set out in the C.C.Q. Consult a notary or lawyer to assess the safest approach and realistic voting thresholds.

For more articles and useful templates on condo management, visit the multiRent blog: https://www.multirent.ca/blogue/

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

This article provides general information and does not replace advice from a tax professional or accountant. Refer to Revenu Quebec and the CRA for exact details.

Do you manage a co-ownership in Quebec? Explore our plans or contact us to assess your needs.