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Title, Ownership, and Land Registration Across Canada
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A title search conducted 3 weeks before a scheduled closing revealed complications that neither the prospective purchasers nor their lawyer had anticipated. The property in question was a 2-storey commercial building in a mid-sized city in southwestern Ontario, currently operating as a retail storefront on the ground floor with office space above. The building had been listed for sale at $1.2 million, and 2 business partners operating a professional services firm had negotiated a purchase price of $1.15 million with the intention of relocating their practice to the ground floor while leasing the upper level to generate rental income.

The partners had agreed between themselves to take title as joint tenants, believing this arrangement would simplify matters if one of them died and would reflect the equal contributions each was making to the down payment and ongoing mortgage obligations. Their lawyer, however, had raised questions about whether joint tenancy was appropriate given that each partner also had a spouse and children who might have expectations about the disposition of assets upon death, and given that the firm itself was structured as a professional corporation rather than a true partnership.

The title search disclosed several issues requiring attention. The current registered owner was listed as 3 individuals holding title as tenants in common in unequal shares, the result of a partial interest having been transferred to a family member 8 years earlier following the death of one of the original purchasers. One of those registered owners had died 14 months ago, and while the estate was in probate, no transmission of title had yet been registered. A mortgage registered against the property in 2019 showed a principal amount of $640,000, but the discharge statement provided by the vendor showed an outstanding balance of only $312,000, and the commitment from the purchasers' lender required clear title before advancing funds.

Beyond these ownership and encumbrance questions, the survey and title documents revealed a right-of-way easement benefiting an adjacent property owner, permitting vehicular access across the rear parking area to reach a laneway. A restrictive covenant registered in 1987 prohibited the use of the property for manufacturing or industrial purposes, though this appeared unlikely to affect the intended professional services use. A utility easement in favour of the municipality ran along the eastern property line, and there was some question about whether a storage shed constructed near that boundary 6 years ago encroached upon the easement area. The purchasers needed to understand what these various interests meant for their planned use of the property, what steps were required to resolve the outstanding title issues before closing, and whether the form of co-ownership they had chosen was appropriate for their circumstances.

Forms of Co-Ownership: Joint Tenancy, Tenancy in Common, and Condominiums

Owning real estate alongside another person or entity represents one of the most common yet frequently misunderstood arrangements in Canadian property law. Whether two business partners purchase a commercial building together, siblings inherit a family cottage, or a non-profit organization acquires property through a complex structure involving multiple stakeholders, the form of co-ownership selected at the outset determines rights, responsibilities, and the ultimate disposition of that property. For small and medium business owners, sole proprietors, and non-profit operators across Canada, understanding these distinctions is not merely academic but carries profound practical consequences affecting business continuity, estate planning, creditor exposure, and day-to-day operations.

The concept of co-ownership in Canadian law permits two or more persons to hold interests in the same parcel of land simultaneously. This fundamental principle operates across all provinces and territories, though the specific rules and terminology differ between common law jurisdictions and Quebec, which operates under the civil law tradition codified in the Civil Code of Quebec. In common law provinces including British Columbia, Alberta, Saskatchewan, Ontario, and the Atlantic provinces, the primary forms of co-ownership are joint tenancy and tenancy in common. Quebec's civil law framework employs different terminology and conceptual structures, recognizing undivided co-ownership under its Civil Code, though the practical outcomes often parallel those in common law provinces. Understanding which form applies to a particular property interest, and the consequences that flow from that determination, represents essential knowledge for anyone involved in acquiring, holding, or disposing of real property in Canada.

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