Co-Ownership Agreements in Quebec: Why (and When) You Should Sign One
Buying a property together — as a couple, with friends, or family?
Someone (your notary, broker, or even your bank) may have suggested something called a co-ownership agreement.
But what exactly is it? Is it required by law? And is it really worth it?
Short answer: YES.
Here’s everything you need to know.
What is co-ownership?
Co-ownership means that two or more people own a property together without dividing it physically. This is what Quebec law calls undivided co-ownership.
Common examples:
- A couple buying a house
- Two friends investing in a duplex
- A parent and child purchasing a condo together
Each person owns a share of the entire property (often 50/50, but not always), rather than a specific unit or room.
What is a co-ownership agreement?
It’s a legally binding document, prepared by a notary, that clearly outlines:
- Who owns what percentage of the property
- Who pays for what (mortgage, taxes, maintenance, etc.)
- How decisions are made
- What happens in the event of a sale, separation, death, etc.
It's not mandatory by law…
…but without one, default legal rules apply — and those may not reflect your personal situation or intentions.
Why it’s risky not to have one
Imagine:
- You break up, but one of you put 80% of the down payment
- One co-owner wants to sell, the other doesn’t
- Someone dies without a will
- A stranger offers to buy out one co-owner’s share — at a discount
Without a written agreement, this can turn into a legal (and emotional) nightmare.
With an agreement, everyone knows the rules before anything goes wrong. You’ll avoid:
- Confusion
- Delays
- Expensive legal battles
- And sometimes… full-blown drama
What’s usually included in a co-ownership agreement
|
Clause |
Why it matters |
|
Share of ownership (e.g. 50/50, 70/30) |
Reflects how much each person contributed financially |
|
Sale rules (right of first refusal, mutual consent) |
Prevents you from being stuck with a stranger as a co-owner |
|
Expenses and responsibilities (taxes, insurance, repairs) |
Avoids surprises and arguments over money |
|
Exit plan if you can’t agree or someone wants out |
Clear roadmap if things don’t go as planned |
|
What happens upon death |
Protects your family, estate, or children |
“But we get along great!”
That’s amazing
But think of a co-ownership agreement like a seatbelt:
You hope you’ll never need it —
but if things take a turn, you’ll be glad it’s there.
The bottom line
A co-ownership agreement isn’t legally required, but it’s often the only true legal safety net for co-owners who aren’t married and don’t fall under a formal legal regime.
It lets you:
- Set the rules in advance
- Avoid unnecessary conflict
- Protect your investment, rights, and peace of mind
And if everything goes smoothly? Great — you may never need to look at it again.
But if things get complicated, you’ll be grateful you signed it.
