Undivided, "a co-op", means that the owners share the same mortgages, rights and obligations.

These are some important tips to know:

• You need 25% down

• You can only bank with the Caisse Desjardins or La Banque Nationale

• You own shares, which may not be split 50%/50%

• Sometimes you may have to share the same furnace (heat source)

• You dont have to pay welcome tax

• There is a transfer tax on the sale

• Cheaper taxes because they are divided in half

• There is a co-op agreement in place (make sure you see it before you buy). It is a good idea to go through it together with the other owner (s)

• Usually one person receives the common bills and collects payment from the other person. Both parties are liable if the taxes do not get paid

• There is no tax assessed if the property is held in undivided co-ownership by a corporation, where the transaction is a sale of shares
• You cannot turn a plex into an undivided if you have a mortgage and a renter.

Because you will be part owners with someone, take the time to get to know them.

If you are interested in turning your plex into a co-op, you will have to make sure that the apartments are not being rented. They have to be vacant for the deed to take place. It is a process that a specialized notary can do for you. It will take about 2-3 weeks, $900 for the notary fees and about $1000 for the land surveyor.

To turn your plex into a condo, from my experience, it can take well up to nine months. There is a lot more red tape involved, but the outcome is a lot more appealing to most buyers.

One very important note that I found out, you will not be able to evict a tenant. So be very, very cautious. Get in touch with the Rgie du Logement to find out exact details.

www.montreal-realestate.ca