Can One Co-Owner Force the Sale of a Property in Ontario?

Owning property with another person can work well until the owners want different things.

One owner may want to sell, while the other wants to remain. Former partners may disagree about their contributions. Family members may inherit a property but be unable to agree on what should happen to it.

In Ontario, a co-owner is generally not required to remain tied to a property forever. The Partition Act provides a court process that may result in the property being divided or, more commonly, sold.

Who Can Ask the Court to Order a Sale?

A person with an ownership interest in land may be able to bring an application for partition or sale.

This can include a joint tenant or tenant in common. The process may be used in disputes between:

• Unmarried or former common-law partners;
• Family members;
• Friends;
• Business partners;
• Real estate investors; and
• Other co-owners.

Different legal considerations may apply when married spouses and a matrimonial home are involved. The ownership documents and relationship between the parties should be reviewed before choosing the appropriate legal procedure.

Will the Court Usually Order the Property Sold?

Ontario courts generally recognize an owner’s right to seek partition or sale.

A co-owner who opposes the sale normally needs more than a personal preference to keep the property. The court may refuse relief where the request is malicious, vexatious or oppressive, but this is a meaningful legal threshold.

Each case depends on its facts.

Financial hardship, disability, the presence of children or a history of conflict may affect how the court manages the case. However, these circumstances do not necessarily give one owner a permanent right to prevent a sale.

What Is the Difference Between Partition and Sale?

Partition physically divides the land between the owners.

That may be possible for a large parcel of land, but it is rarely practical for a single house or condominium.

A sale converts the property into money so the owners’ interests can be separated.

The court may give directions about:

• Selecting a real estate agent;
• Determining the listing price;
• Preparing the property for sale;
• Arranging access for showings;
• Accepting an offer;
• Obtaining vacant possession; and
• Signing documents if an owner refuses to cooperate.

How Are the Sale Proceeds Divided?

The names registered on title are an important starting point, but title may not answer every financial question.

One owner may claim a credit for:

• The original down payment;
• Mortgage principal payments;
• Property taxes;
• Insurance;
• Necessary repairs;
• Renovations; or
• Other property-related expenses.

Another owner may claim occupation rent because one co-owner had exclusive use of the property.

There may also be a written co-ownership agreement, trust claim or other agreement affecting the division.

These accounting issues are highly fact-specific. Not every payment creates a dollar-for-dollar credit. The court may examine the parties’ intentions, their agreement and the entire history of ownership.

Can One Owner Buy Out the Other?

Yes. A negotiated buyout is often the most efficient solution.

The parties can obtain an independent appraisal, agree on the necessary financial adjustments and transfer one owner’s interest to the other.

The buying owner will normally need to qualify for refinancing. The departing owner should also ensure that they are properly released from the existing mortgage.

A negotiated buyout gives the parties more control over the timing and value of the transaction.

However, one owner does not always have an automatic right to force the other owner to accept a private buyout rather than an open-market sale.

What If One Owner Refuses to Sign?

Refusing to sign documents may delay the process, but it does not necessarily prevent a sale.

The court can establish a process and, in an appropriate case, authorize the steps necessary to complete the transaction.

An owner who ignores the proceeding or unreasonably interferes with the sale may also face cost consequences.

Co-owners should avoid self-help measures such as changing locks, removing personal property or interfering with showings without first obtaining legal advice.

What Should Co-Owners Do Before Going to Court?

Before starting a court proceeding, the parties should consider the following:

• Obtain the parcel register, transfer and mortgage documents.
• Collect records of down payments, mortgage payments and major expenses.
• Locate any co-ownership, trust or separation agreement.
• Obtain a reliable appraisal or market opinion.
• Make a clear written proposal for a sale or buyout.
• Consider negotiation or mediation.

An early agreement can reduce legal costs and preserve more of the property’s equity for both owners.

Frequently Asked Questions

Can My Co-Owner Stop Me From Selling Forever?

Usually not. An owner may seek a court-ordered partition or sale, although the circumstances and any available defence must be reviewed.

Does a 50% Owner Always Receive 50% of the Net Proceeds?

Not necessarily. Registered ownership is important, but contribution, trust and accounting claims may affect the final division.

Can I Recover Money Spent on Renovations?

Possibly, but recovery is not automatic. The nature of the work, the parties’ agreement and the effect of the renovation on the property may matter.

Can the Court Make an Uncooperative Owner Leave?

The court may issue directions necessary for an effective sale, including directions involving possession. The appropriate order will depend on the evidence.

How Minhas Lawyers Can Help

Minhas Lawyers Professional Corporation can represent property owners in Mississauga and throughout Ontario in co-ownership disputes, Partition Act applications and related accounting claims.

You can contact Minhas Lawyers at (905) 671-9244 or use the contact form on our website.

Disclaimer: This article provides general legal information only. It is not legal advice and does not create a lawyer-client relationship. Different considerations may apply to spouses, estates and properties subject to other agreements or court orders.