Buying a home in British Columbia is expensive, and many people are teaming up with family or friends to make it more affordable. It’s a smart idea, but it also comes with legal and financial risks. Before you buy together, here are some important things to consider.
1. Choose the Right Type of Ownership
There are two main ways to co-own a property in BC:
Joint Tenancy – Everyone owns the whole property equally. If one person passes away, their share goes to the others.
Tenancy in Common – You can each own a different percentage. If someone passes away, their share can go to someone else (like a family member).
Tip: If you’re putting in different amounts of money, Tenancy in Common is usually better.
2. Create a Co-Ownership Agreement
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3. Know the Mortgage Rules
Most banks require all co-owners to be on the mortgage. That means:
Everyone’s income and credit score matter
If one person doesn’t pay, the others must cover it
Talk to a mortgage advisor before applying, so you understand the full picture.
4. Think About Taxes
Depending on how the property is used (home vs. rental), you might have to pay:
Property transfer tax
Capital gains tax (if you sell later)
Other taxes
A tax advisor can help you plan ahead.
5. Have an Exit Plan
What if someone wants out?
Your agreement should include:
Who gets the first chance to buy the other’s share
How will the property be valued
What happens if you all want to sell
It’s better to agree on these things now than to deal with surprises later.
Final Thoughts
Buying property with others can be a great way to get into the market, but only if you plan properly.
At Umbrella Law Firm, we help families and friends create clear legal agreements so everyone is protected.
Have questions about co-owning a home?
Get in touch with our team today.
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