Real Estate Talk:
Buying a condo

Rules and formalities to follow when purchasing a divided or undivided condominium

By Joseph Marovitch

Updated September 11, 2025

I was recently interviewed in Westmount Magazine regarding the current state of condos in Montreal. Some of the issues touched on were:

Are condos a good investment as income property?
What to look for when searching for a condo?
Reasons for purchasing a condo?
Condo fees and why they increase!

The writer who wrote the article, A closer look at Montreal’s condo market, is Irwin Rappaport. I decided to supplement the interview with the following article.

I sold the home of a wonderful older couple who had lived in the same house for many years. Their children grew up in the house and moved out a while back. There were many memories in the house; however, the wife did not want to maintain the property now that the kids were gone. The husband did not want to move and was very rigid in his ways.

Nonetheless, he agreed with his wife, and they requested that I find a condominium with two bedrooms, two bathrooms, two garages, and all the amenities, such as a doorman, 24-hour security, a pool, a gym, and an elevator, in a more modern construction.

We had only a month to find a new location, as the new owners would be taking possession in thirty days, and we paid a premium for the option to acquire the house sooner.

A condo can be described as shared living in the same building. The condo can be a duplex, fourplex, or a twenty-unit plus multi-plex. There are two types of condominiums, divided and undivided.

Shortly thereafter, we found a prestigious property located in a well-maintained building constructed in 1987 with all the services requested. The grounds had a stunning garden with a fountain and places to sit. The condo had beautifully stained hardwood floors, marble countertops, and excellent views. We purchased the property, and my client moved.

A few months later, the husband called to thank me. He told me their new home was beautiful and much easier to maintain. There was no grass to cut, snow to remove and no stairs to navigate. All needs were taken care of by the doorman, security, and administration. The couple were able to leave their home and travel with no worries.

Their reason for purchasing a condo is one of many. For other buyers, a condo is a more affordable option these days than a single home. For others, it can be an investment.

A condo can be described as shared living in the same building. The condo can be a duplex, fourplex, or a twenty-unit plus multi-plex. There are two types of condominiums, divided and undivided.

A divided condo is the preference of most buyers. A divided condo is a building in which the owner owns the unit they are living in. There are shared expenses in the form of condo fees and assessments to cover regular repairs, upgrades, and unexpected issues, such as the maintenance of common areas, insurance for the building, and repairs for damaged garage doors or roof problems, as well as amenities like a doorman, pool, or gym.

The main advantage of a divided condo is that the owner owns the unit they live in, is not required to share a mortgage with the rest of the owners, has more control over their condo issues and can provide a down payment as little as 5%.

If the condo is undivided, each owner owns a percentage share of the building and does not own their own unit; a minimum of 20% down is required for the mortgage. The owners of the units have significantly more influence over the decisions of the building and their individual units. Finally, many undivided condos have a 72-hour rule in their declaration of co-ownership, stating that all the other owners have a right of first refusal when one owner is selling and receives a promise to purchase. This means the other owners have 72 hours to decide if they want to buy the condo at the price, or higher, presented by the current buyer.

The advantages of an undivided condo are that they tend to be less expensive, and if the owners ever do decide to divide the units, the value increases significantly.

‘A divided condo is the preference of most buyers. A divided condo is a building in which the owner owns the unit they are living in.’

Buyers have many options to choose from when purchasing a condo. However, they can narrow their choice with several of their own criteria and three general rules.

After deciding how many bedrooms and bathrooms are required, along with the number of square feet, parking and location needed, the rules to follow are:

Choose a condo that is built by a developer who has been in the business for some time and has a proven track record for using good materials and delivering on time.
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Choose a location that is in demand and easy to sell later. Griffintown, by the canal, by the Atwater market, Westmount, NDG, and the Golden Square Mile are all good locations. Areas that are developing with new daycares, shopping centres, restaurants and boutiques are great.
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Do not overpay for a condo. Purchase at market value or below. Overpaying for a condo, especially a new construction, with taxes on top of the purchase price, will be tough to recoup when you sell, unless you keep the condo for an extended period. As condos are usually part of the “circle of life”, that is, you sell them as soon as you get married or have children, you most likely will not keep the condo long enough to profit if you overpaid.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

State of the Market

According to a recent RBC Economics report published September 8, 2025, sales have increased in Montreal and parts of Canada, yet in many provinces (Quebec is not mentioned as one of them), sales did not match the numbers from a year ago. According to the report, there appear to be indicators that suggest a mild recovery in the real estate market in 2025, accompanied by increasing confidence and stronger demand.

‘Global awareness is crucial when making one of the most significant decisions in life that affects the life savings of most people.’

Further, the report states Montreal has experienced increased supply and transactions, causing an estimated 8% increase in sales, which, according to the RBC report, is an excellent indication that the market is rebounding slowly. It is also stated that buyers in Montreal are motivated to buy; however, increasing prices and a shortage of supply have made the market challenging. Therefore, RBC believes the market will remain volatile for the present. Finally, the report indicates median prices for single homes rose 7.3% and condos 3.7% over the past 12 months.

As stated in past articles, geopolitical factors deeply affect our economy, causing inflation and interest rates to rise or fall. This is not mentioned in the RBC report. Yet, several new issues have arisen and make the market more uncertain, such as Israel’s attack on Qatar, Russia’s incursion into Poland, a NATO member, the U.S. policy to limit vaccines, which can cause another pandemic, and a fundamental lack of diplomacy globally, which can be an indicator of future conflicts. These are issues all should be aware of when entering the real estate market to make adequately informed decisions.

We tend to work and think in a microcosm, as we are immersed in our jobs and family obligations, and do not consider the larger outside factors that can significantly affect us. Global awareness is crucial when making one of the most significant decisions in life that affects the life savings of most people.

For further discussion, leave a comment or call me directly.
Have a great week!

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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 and 16 as the owner and director of Camp Maromac, a sports and arts sleep-away summer camp established in 1968. Using the same strengths that he developed while caring for families, such as reliability, integrity, honesty, and a deep sense of protecting the interests of those he is responsible for, Joseph applies these qualities to his present real estate broker career. Should you have questions, please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com