Do you want to buy a chalet together? It’s understandable: real estate prices make it very difficult for a single person or even a couple to get there.
So the option of a second home in the condominium is attractive, but there is much that needs to be agreed upon, from the distribution of payments to the regulations regarding cleaning or the presence of guests. And even if you’re shopping with family members or close friends, it’s highly recommended that you get everything in writing to avoid any misunderstandings.
“We have to regulate, otherwise the harassment will continue, that’s for sure,” says Me Catherine Chouinard, a notary specializing in real estate law at Sherbrooke law firm Monty Sylvestre, who is noting an increase in this type of purchase.
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The acquisition costs, separated equal or not?
First, it’s not because we all have to wager the same amount because we’re buying from multiple people.
Group purchases of chalets are often made together. The co-ownership agreement specifies who owns the chalet and what share (percentage) he buys.
“Two owners can separate the costs 50%-50% or [une autre combinaison comme] 35%-65%. If there is a mortgage, they have to pay the mortgage payments in the stipulated proportions,” explains Me Chouinard.
Of course, this choice has an impact on the money that will be returned to everyone in the event of a possible resale.
“But we don’t each have our own end, we have access to the whole chalet,” she says.
Notary fees for the co-ownership agreement are also to be provided for.
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Current expenses
Once you’ve bought your vacation home, don’t forget all the costs that come with owning a property.
For example, paying community and school taxes. “We can choose to set up a joint account where everyone has to deposit such an amount for such a date, and we designate a person to be responsible for the payment,” Me Chouinard gives as an example.
The same goes for insurance payments, septic tank maintenance, snow removal, repairs…
“We try to pre-govern whatever we can,” summarizes Me Chouinard.
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The Rules of Life
Once money matters are sorted out, the importance of writing down rules for living in the cabin should not be underestimated. Over the years, everyone’s situations can change and it will be much easier to reach a common agreement if we had previously agreed on the regulations, the notary emphasizes.
Here are some questions that might be relevant:
- Who has access to the chalet and when? Is there an annual meeting where anyone can book time at the chalet?
- Can we receive guests in the chalet? If so, can they be there alone without one of the owners being there?
- What condition do you want the chalet to be left in after a stay? Do you need to have cleaned the house, changed the sheets, stocked up on toilet paper?
- Who is liable for the replacement in the event of damage?
- What happens if someone breaks the rules?
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And then?
It must also be determined what happens if one of the owners wants to resell his part (does he have to offer it to the other owners first?) or if he dies. Because in the course of separations, new marriages and inheritances, you could find yourself in a chalet with quasi strangers in a few decades.
“It can be tiring, but if done well, it avoids a lot of problems. You have to do that when you buy it. If we decide to become owners together, it’s because we get along well, so it’s time to talk about it! closes Me Chouinard.
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