Establish Your Co-Ownership Agreement

Outline the Ownership Structure

When purchasing a property, it is crucial to formalize the terms you and your partners previously set into a legal agreement. This co-ownership agreement will outline the ownership structure and detail the legal relationship between the co-buyers.

Generally, there are two types of ownership structures between co-owners:

1. Joint Tenants

Joint tenants have equal rights to the property, regardless of each person's contribution to the purchase. They must obtain equal shares with the same deed at the same time. Joint tenants also have rights of survivorship, meaning if one tenant dies, their share automatically passes to the surviving tenants. For example, if Tenant A dies, Tenant B and Tenant C each inherit half of Tenant A’s share.

2. Tenants in Common

In a tenants in common arrangement, each owner's share in the property can vary, such as Tenant A owning 40%, Tenant B owning 30%, and Tenant C owning 30%. In Ontario, there are no rights of survivorship for tenants in common; if one tenant dies, their share is distributed according to their will or estate plan, rather than automatically to the surviving owners.

The co-ownership agreement should also include other essential details, such as:

• A plan for how the property will be used
• Expected contributions to repairs and maintenance
• An agreed-upon decision-making process, including how to handle unexpected circumstances
• A requirement that partners maintain appropriate levels of personal and life insurance
• Exit strategies

Including an indemnity clause is also advisable, allowing partners to seek compensation for losses caused by the negligence, misrepresentation, or misconduct of others.

Take the Next Step with Husmates

When you choose Husmates' founders, Lesli and Parimal, as your real estate guides, you receive free agreement templates and tools to help you establish a solid foundation for your co-ownership.

Explore more about co-ownership and start your journey with personalized support by booking a 1-on-1 video chat with our founders today.

With your co-ownership agreement in place, setting up for long-term success is crucial. Keeping all documents organized and maintaining clear communication will help ensure a harmonious partnershi

Excited about the possibilities of co-ownership? Explore further in the Beginner's Guide:

1. What is Co-Ownership?
2. Get Started with Co-Ownership
3. Find Co-Ownership Partners
4. Establishing Your Terms
5. Secure Financing
6. Finding Co-Ownership Property
7. Establish Your Co-Ownership Agreement
8. Setting Yourself Up for Success