Besides the sole ownership, in Ontario, real estate can be bought by two or more individuals. There are four ways this can be done. It is advised that each of the owners should get his/her independent legal advice explaining the potential liabilities and the ownership details. Here are the four methods explained in detail:
It means that in case one of the initial purchaser/partner becomes deceased, the portion of the deceased’s real estate will be granted to the remaining purchasers. This method is the most common way for spouses to share property.
Tenants in Common
This law mentions that in case one of the purchaser is deceased, the share of the deceased in the property will be transferred as per the deceased’s will. In case no will is there, the Law of Ontario will decide the transfer of the real estate.
It is generally advised that a trust case must be discussed in detail with a lawyer only. This means that the person who has registered on the Ontario land Registry for the real estate purchase may in truth not be the true owner or the real beneficiary of the land. On face of the document, the stated person might just be the caretaker and not the real owner of the real estate.
Many times one person provides the substantial amount needed for the purchase of the real estate and yet many people are made the owners or beneficiaries. In such a case, it is advised that the owners enter into a special agreement. This helps avoid the future distribution of the funds when the situation of resale arises. One of the prominent features of Partnership Agreement is that after the sale each purchaser gets his/her relative due as per the initial contribution made by each one of them. Also, this partnership agreement can be modified to include any additional contributions that any of the members made during the ownership period. For example, renovation costs can be included as per each member’s contribution.