This indivision agreement template is the legal instrument that confirms the undivided co-ownership of a building between different co-owners, each of whom owns a percentage "share" thereof, without the building being physically divided. An undivided co-ownership may arise in different situations that require the partitioning of ownership between two or more persons, such as with regard to the joint acquisition of an immovable, succession to property by will or law, identifying ownership interests under a matrimonial regime, etc.

We have drafted this indivision agreement to ensure the orderly functioning of the co-ownership and that it continues to benefit the co-owners. Our template can be used to govern the relationship between the undivided co-owners of a commercial or residential building and it is based on the applicable provisions of the Civil Code of Quebec. Clearly organized and easy to use, our template postpones the partition of the undivided co-ownership until the expiry of the agreed term.

We recommend using this template to organize, customize and provide a framework for an undivided co-ownership agreement because many of the recommended provisions under the Civil Code of Quebec are not considered of public order. As such, our template enables you to maximize the benefits of a typical undivided co-ownership arrangement.

It is important to note that an undivided co-ownership arrangement may arise as a result of an agreement, a succession, a legal decision or the law and that to be enforceable against any third party it must be published (registered).

RECITALS
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Building
0.01.05 Claim
0.01.06 CO-OWNER
0.01.07 Co-ownership
0.01.08 Dispute
0.01.09 Encumber / Encumbrance
0.01.10 Financial Year
0.01.11 Force Majeure
0.01.12 Law
0.01.13 Legal Representatives
0.01.14 Loss
0.01.15 Net Income
0.01.16 Ordinary Resolution
0.01.17 Person
0.01.18 Prime Rate
0.01.19 Share
0.01.20 Special Resolution
0.01.21 Systems and Equipment
0.01.22 Title
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Approval
0.05.09 Accounting Standards
1.00 GOVERNING CO-OWNERSHIP
1.01 Creation
1.02 Shares
1.03 Banking Matters
1.03.01 Bank Accounts
1.03.02 Authorized Signatories
1.03.03 Intermingling of Accounts
1.03.04 Loans
1.04 Books and Records
1.04.01 Description
1.04.02 Share Register
1.04.03 Other Documents
1.04.04 Access
1.05 Financial Statements
1.05.01 Appointment
1.05.02 Accounting Standards
1.05.03 Filing
1.06 By-laws
1.07 Signatories for Contracts
2.00 MANAGEMENT OF BUILDING
2.01 Administration
2.02 Appointment
2.03 Compensation
2.04 Resignation
2.05 Removal
2.06 Powers and Duties*
2.07 General Powers
2.08 Rental Activities
2.08.01 Offers to Lease and Leases
2.08.02 Collecting Rent
2.08.03 Recovery of Overdue Amounts
2.08.04 Notices and Reports
2.08.05 Relations
2.09 Banking Matters
2.09.01 Co-ownership Accounts
2.09.02 Signature
2.09.03 Deposits
2.09.04 Expenditures
2.09.05 Reserve Fund
2.10 Preventive Maintenance of Building
2.11 Repairs, Renovations and Alterations
2.11.01 Approval
2.11.02 Service Agreements
2.11.03 Work Register
2.11.04 Repairs by Tenants
2.12 Accounting and Bookkeeping
2.13 Continuous Disclosure
2.13.01 General Account
2.13.02 Requests for Information
2.14 Indemnification
3.00 RULES GOVERNING CO-OWNERS
3.01 CO-OWNER Meetings
3.01.01 Annual Meeting
3.01.02 Special Meeting
3.01.03 Place of Meetings
3.01.04 Access
3.02 Proxies
3.02.01 General
3.02.02 Models
3.03 Calling of Meetings
3.03.01 Notice of Meeting
3.03.02 Waiver of Right to Notice
3.03.03 Incomplete Notice
3.03.04 Failure to Give Notice
3.04 Procedure at Meetings
3.04.01 Quorum
3.04.02 Adjournment
3.04.03 Second Adjournment
3.04.04 Voting
3.04.05 Exercising Right to Vote
3.04.06 Submitting a Proxy
3.04.07 Written Resolution
3.04.08 Conflict of Interest
3.05 Encumbrance on Building
3.06 Encumbering Share
3.07 Use
3.08 Expenses
3.08.01 Administrative Expenses
3.08.02 Reimbursement
a) Necessary Expenses
b) Other Expenses
3.09 Sharing of Net Income
3.09.01 Distribution
3.09.02 Reserve Fund
4.00 DUTIES AND OBLIGATIONS OF CO-OWNERS
4.01 Insurance
4.01.01 Insured Risks
4.01.02 Amount of Coverage
4.01.03 Insurer
4.01.04 Prior Notice
4.01.05 Additional Named Insured
4.01.06 Certificates of Insurance
4.01.07 Notice of Modification or Cancellation
4.02 Indemnification
4.02.01 Definition
4.02.02 Scope
4.02.03 Procedure
5.00 WITHDRAWAL OF A CO-OWNER
5.01 Voluntary Withdrawal
5.01.01 Right to Withdraw
5.01.02 Offer
5.01.03 Notice
5.01.04 Refusal
5.02 Forced Withdrawal
5.02.01 Option to Purchase
5.02.02 Triggering Events
5.02.03 Notice
5.02.04 Refusal
5.03 Terms of Payment
5.04 Dispute ("Shotgun" Clause)
5.04.01 Notice
5.04.02 Time Limit to Accept
5.04.03 Deemed Acceptance
5.04.04 Formal Acceptance
5.04.05 Rejection of Offer
a) Deemed Purchase
b) Price and Terms
c) Proportion
5.05 Release and Discharge
6.00 DISABILITY OF A CO-OWNER
6.01 Definition
6.02 Application
6.03 Notice
6.04 Refusal
7.00 DEATH OF A CO-OWNER
7.01 Effect
7.02 Deemed Sale
7.03 Terms of Payment
7.03.01 General
7.03.02 Insurance Proceeds
a) Sufficient
b) Insufficient
7.03.03 Balance
7.03.04 Promissory Note
7.03.05 Collection Costs
7.03.06 Expiry of Term
7.03.07 Prepayment
7.03.08 Solidary Liability
7.04 Two Deaths
7.05 Protection of the Estate
7.05.01 Indemnification
7.05.02 Release
7.06 Precedence
8.00 VALUATION OF SHARES
8.01 Initial Value
8.02 Current Value
8.02.01 Reassessment by CO-OWNERS
8.02.02 Dissent
8.03 Alternative Valuation
8.04 Reassessment by Tax Authorities
8.04.01 Liability
8.04.02 Options
9.00 FINANCING
9.01 Life Insurance Policies
9.01.01 Initial Policy
9.01.02 Additional Policies
9.01.03 End of Agreement
9.02 Duties of CO-OWNERS
9.02.01 Payment of Premiums
9.02.02 Prohibition
9.02.03 Additional Protection
9.02.04 Changes to Insurance Coverage
9.02.05 Sale upon Death
a) No Insurance Proceeds
b) Ownership of Excess Amounts
9.03 Transfer of Insurance
10.00 DEPOSITARY
10.01 Appointment
10.02 Remuneration
10.03 Duties
10.03.01 Custody
10.03.02 Compliance
10.03.03 Liability
10.04 End of Agreement
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right of Other CO-OWNERS
12.00 GENERAL PROVISIONS
12.01 Notices
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.02 Mediation
a) Process
b) Settlement
c) Arbitration [OR Legal Proceeding]
12.02.03 Arbitration Procedure (if V1 of 12.02.02 c) applies)
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontracts
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
12.03 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Without Notice
13.02 Terminating Co-ownership
13.02.01 Options
13.02.02 Divided Co-ownership
13.02.03 Sale of Building
a) Sale
b) Proceeds of Sale
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Initial Term
15.02 Renewal
15.02.01 First Renewal
15.02.02 Subsequent Renewals
15.03 Non-Renewal
15.04 Survival
16.00 SCOPE

SCHEDULE A [OR B OR C] – EXCERPT OF A RESOLUTION OF CO-OWNER A [OR B OR C]
SCHEDULE 0.01.22 – UNDIVIDED CO-OWNERSHIP TITLE
SCHEDULE 2.06 – PROPERTY MANAGEMENT AGREEMENT
SCHEDULE 2.08.01 – RENTAL POLICY
SCHEDULE 8.01 – INTIAL VALUE
SCHEDULE 8.02.01 – REASSESSMENT OF VALUE
SCHEDULE 9.01.01 – LIFE INSURANCE POLICIES
SCHEDULE 10.01 – DECLARATION OF DEPOSITARY