Real Estate

The Rationale Behind Condo Deconversion in Chicago

Direct conversion of rental units such as chicago condo deconversion for example to condominium ownership is prohibited in some cities, with some exceptions, and that is why landlords convert them to undivided co-ownership first. You should know that a building with units occupied by undivided owners can be converted into divided co-ownership, subject to certain conditions. But carrying out this conversion requires several steps involving all the co-owners concerned.

Administrative Housing Tribunal: Ensure to get approval

Be aware that some conversions require permission from the Tribunal administrates of dislodgement, which acts as a specialized court. Under the Administrative Housing Tribunal Act, a conversion (or not) will be permitted following a decision. This decision is necessary if a building has, or had at least one dwelling during the 10 years preceding the application for authorization (within the meaning of Article 1 of the Act respecting the Administrative Housing Tribunal ).

As this process could lead to waiting times, starting it as soon as possible is better. At this stage of the process, it is also recommended to seek a lawyer’s services or property manager like 33rd property management for example. The latter will take care of the many procedures inherent therein. He will also ensure representations before the Administrative Housing Tribunal.

Preparation Of The Cadastral Plan And The Declaration Of Co-Ownership

In parallel with the steps taken at the Administrative Housing Tribunal, it is necessary to plan for the hiring of a land surveyor and a notary to set up the co-ownership. The first will produce the cadastral plan before the declaration of co-ownership, while the second will draft it and see to its publication.

The chosen notary must master the concept specific to converting an immovable into a divided co-ownership because he must include particular clauses in the declaration of co-ownership to complete the immovable division between the co-owners adequately. For example, it will have to include provisions regarding the partition that ends joint ownership and others regarding the reassignment of existing mortgages. Remember that the declaration of co-ownership cannot be published until the new cadastral plan is duly formalized in the Quebec land register. Once this is done, the building held in divided co-ownership will be able to benefit from the various advantages associated with it.

Formalism

If a conversion requires obtaining a decision from the Administrative Housing Tribunal, this authorization must be appended to the declaration of co-ownership. Failing to publish the declaration of co-ownership in the land register within one year following the decision, the latter will become without effect. However, the Tribunal may extend this time limit for reasonable cause, provided that the request is sent to it before the expiry of this time limit.

 The Limits Of A Conversion

The conversion of an immovable into a divided co-ownership is prohibited if it:

It belongs to a housing cooperative, a non-profit organization, or a municipal housing corporation, and if it was built, acquired, restored, or renovated under a housing assistance program of the government, the federal government, or one of their departments or agencies.

It is located on the territory of the Montréal agglomeration unless all the dwellings in the building are occupied by undivided owners or even if the council of a borough has granted an exemption.

Montreal And Its Particularities

If the conversion project takes place in the Montreal agglomeration and all the dwellings are not occupied by undivided owners (e.g., a dwelling is occupied by a tenant or is vacant), it will also be necessary to contact the office of the borough concerned, to obtain an exemption from the ban on converting.

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