Buying a Home with Family or Friends in Ontario

With real estate prices in Ontario staying high in 2025, more buyers are looking for creative ways to enter the housing market. One increasingly popular approach is co-ownership—buying property with family members, friends, or investment partners. Whether it’s siblings purchasing a duplex together, parents co-signing on a mortgage for their child, or two friends splitting the cost of a condo, shared homeownership is becoming more common.

But while co-owning property in Ontario can be financially beneficial, it also comes with legal complexities and risks. If you’re considering buying a home with someone else, it’s essential to understand how co-ownership works and why legal planning is key to protecting your investment.

When two or more people buy a property together in Ontario, they become co-owners. There are two main ways this can be structured: joint tenancy or tenants in common. In a joint tenancy, all owners hold equal shares of the property, and if one owner passes away, their share automatically transfers to the surviving owner(s) through the right of survivorship. This structure is common among spouses. In contrast, a tenancy in common allows owners to hold unequal shares (for example, 60/40) and pass on their share through their will. This option may be more suitable for friends, siblings, or business partners.

Although co-ownership can help with affordability, it also brings risks. Common issues include unequal financial contributions, disagreements over property use, disputes about maintenance costs, or situations where one owner wants to sell and the other does not. In the absence of a clear legal agreement, these problems can lead to costly legal disputes or court ordered sales of the property.

To prevent such outcomes, every co-owner should have a Co-Ownership Agreement drafted by a real estate lawyer. This legally binding document outlines each person’s ownership percentage, responsibilities for expenses, decision-making rules, and exit strategies if one party wants out. It can also cover whether one or more of the co-owners will live in the property, or if it’s strictly for investment purposes. Having a clear agreement in place helps protect both the financial investment and the personal relationship of the co-owners.

If you’re co-owning a property with your parents or children, it’s also important to consider tax implications. For example, if a parent goes on title but does not live in the home, they may be subject to capital gains tax when the property is sold since it may not be considered their principal residence. Structuring the title properly and understanding how the Canada Revenue Agency treats different ownership scenarios is essential to avoid unpleasant surprises later.

Additionally, co-ownership is growing in popularity as a real estate investment strategy. Friends, colleagues, or family members often team up to purchase rental properties in high-demand areas like Ottawa and Toronto. These arrangements should include detailed agreements around rental income, expenses, mortgage responsibilities, and what happens if one party wants to exit the investment.

At the end of the day, co-owning a home or investment property in Ontario can absolutely work if the legal structure is sound. We work with buyers across Ontario to help them co-own real estate safely and confidently. Our experienced real estate lawyers can draft personalized Co-Ownership Agreements, structure your title correctly, and ensure that all parties are protected now and in the future.

If you’re thinking about buying a property with someone else, don’t wait until problems arise. Let us help you plan ahead and protect your rights from day one.

The content on this post is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship.