Date published: 06/05/2024

Establishing the Market Value of a Co-ownership Unit

As the seller will want to receive the best possible price for their unit and the buyer will want to pay a fair purchase price, it is in the interest of both to know its fair market value. Establishing the market value of a co-ownership unit, however, is not a simple task and those buying or selling this type of property need to work with a qualified professional like a real estate broker.

One of the key roles of a real estate broker is to fairly establish the market value of the co-ownership unit in order to properly inform and advise their buying or selling client. The market value of the property has to reflect the reality of the market. When a broker establishes the market value of a property, their opinion must be based on and supported by generally accepted practice.[1] The broker has an ethical responsibility to not disseminate information that is false, misleading, or incomplete with regard to the selling price of an immovable (which must be the price set in the real estate brokerage contract).[2] A broker may not, for example, advertise a price that is lower than the price set in the brokerage contract for the sale of the property in order to encourage a bidding war.

Brokers generally determine market value using the direct comparison approach, better known as comparative analysis. They must first gather all information related to the property that could have a positive or negative effect on its market value, such as location (neighbourhood, neighbourhood watch program, etc.), building type (single family, multigenerational, co-ownership, etc.), state of repair and maintenance, dimensions, materials, number of rooms, presence of accessories (pool, garage, etc.), and inclusions and exclusions. This allows them to identify properties with similar characteristics. Brokers and agencies have exclusive access to a database of information listing services that they use to do this. Finally, applying their expertise and knowledge of the market, the broker will carry out the comparative analysis to establish the market value of the condominium unit.

In the case of divided co-ownership, it is also important to take into account whether or not the co-ownership is managed soundly by the syndicate of co-ownership. The rules governing co-ownership management have tightened considerably in recent years, and mismanagement of the co-ownership can quickly affect the market value of a condominium unit. First, there are the new insurance rules. The syndicate of co-ownership is now required to take out insurance against ordinary risks providing for a reasonable deductible and the amount insured must cover the reconstruction of the immovable in accordance with the standards, usage, and generally accepted practices applicable at that time.

Furthermore, the syndicate must establish a self-insurance fund to pay the deductibles provided for by the insurance taken out and to make reparation for injury caused to the property, where the contingency fund or an insurance indemnity cannot provide for such reparation.[3] A buyer, for example, might buy a co-ownership unit and, after the purchase, have to deal with a serious incident such as a fire in the building or major water damage, only to realize that the insurance taken out by the syndicate of co-ownership is not sufficient to cover the repairs. This type of poor management would result in significant costs for the buyer.

There are also new rules around the property’s maintenance log and contingency fund. The new rules stipulate that every five years, the board of directors must obtain a contingency fund study establishing the sums necessary for the fund to be sufficient to cover the estimated cost of major repairs and the replacement of common portions.[4] In the same vein, the syndicate’s board of directors must ensure a maintenance log is established for the immovable which describes maintenance done and maintenance required.[5] A buyer of a co-ownership unit, as another example, could be informed post-sale that due to ineffective management of the contingency fund by the syndicate of co-ownership, they are now required to cover a substantial cost to replace the building's windows. Would they have paid the same purchase price if they had known that they would have to bear the cost of replacing the windows used by all previous owners?

These are just a few examples of the disastrous consequences of poor co-ownership management, but they demonstrate the importance of your broker’s role in determining the fair market value of a co-ownership unit. RE/MAX Coproprié-T affiliate brokers are available to assist you in this process. They have access to an exclusive training program, Coproprié-T, which has been specially designed for co-ownership, allowing them to maintain high quality service standards for transactions involving divided co-ownerships.


Good to know! Looking for the assistance of a qualified professional for buying or selling your co-ownership? Look for a broker affiliated with the Coproprié-T program on the RE/MAX website!


Me Julie Smythe, MBA
Legal Affairs Director
RE/MAX Québec
For the list of our Coproprie-T Affiliated brokers :


[1] Article 76 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising

[2] Article 112 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising

[3] Article 1071.1 C.C.Q.

[4] Article 1071, paragraph 2 C.C.Q., not in force

[5] Article 1070.2 C.C.Q., not in force

Julie Smythe
Julie Smythe