Notice of Address: What It Is and Why It Matters

Why a Notice of Address Can Protect You

Québec law provides an important protection for owners in undivided co-ownership.

If one co-owner fails to pay a debt, a creditor may seek to seize or take ownership of that co-owner’s share of the property. By publishing a notice of address at the land registry, you ensure that you are notified if a creditor intends to take action against your co-owner’s share.

This notification gives you the opportunity to protect your interest in the property.

What Is Undivided Co-Ownership?

When two or more people purchase or own a property together, they are owners in undivided co-ownership. This means that each person owns a percentage of the entire property, not a specific physical portion of it.

In an undivided co-ownership, the property is not divided into separate parts between the owners. Each co-owner’s share applies to the whole property.

Common Examples of Undivided Co-Ownership

• Spouses or partners who buy a house together, each owning 50%.

• A father and a son who purchase a duplex together, each owning a share of the entire building.

• Two siblings who inherit or buy a family property together.

• Business partners or friends who jointly acquire a rental property.

• Co-owners of a condo or multiplex where ownership is undivided rather than divided into separate units.

  
  

In all these situations, each co-owner owns a percentage of the whole property, not specific rooms, units, or sections.

How This Works in Practice

Many people assume that credit cards or personal debts cannot affect real estate, but in certain situations, they can.

A person may incur a personal debt, such as a credit card balance, personal loan, or line of credit. If the debt remains unpaid, the creditor may take legal action and obtain a court judgment confirming the amount owed. Once that judgment is obtained, the creditor can register it at the land registry against any real estate owned by the debtor. Although the debt started as a personal obligation, this registration creates a lien on the debtor’s property, meaning the property becomes affected by the debt and the judgment will appear in title searches.

After registration, the creditor may require payment upon sale or refinancing of the property or, in certain cases, seek to seize and sell the debtor’s share of the property to recover the debt.

If the property is owned with another person in undivided co-ownership, the creditor’s rights generally apply only to the debtor’s share, but this can still have significant consequences for the other co-owners.

Example 1: Siblings

Two siblings own a property together. One sibling runs into financial difficulty and stops paying a creditor. Because a notice of address was published, the creditor must notify the other sibling before taking the defaulting sibling’s share as payment. The non-defaulting sibling may then pay the debt to prevent the creditor from becoming a co-owner.

Example 2: Parent and Child

A father and his adult son own a rental property together. The son defaults on a personal loan. The creditor notifies the father of its intention to seize the son’s share. The father can pay the creditor and, in doing so, take over the creditor’s rights against his son until the amount is reimbursed.

Example 3: Spouses or Partners

A couple owns a home together. One partner fails to meet financial obligations. The notice of address allows the other partner to intervene before a third party becomes a co-owner of the property.

In all cases, if you pay the creditor, you legally replace the creditor and your co-owner will owe the debt to you instead.

What Happens If No Notice of Address Is Registered?

If no notice of address has been published:

• The creditor does not have to inform you.

• A creditor or third party may become your new co-owner.

• Your only option may be to buy out that third party, without benefiting from the creditor’s legal rights or protections.

  
  

How to Protect Yourself 

Publishing a notice of address is not mandatory and involves additional fees, but it is a valuable preventive measure.

Ask your notary to publish a notice of address at the land registry when you complete your real estate transaction.

This simple step helps ensure that you are informed of any legal action affecting your co-owner’s share and allows you to act before your ownership is impacted.