Co-ownership is a growing trend in Canada’s housing market, largely driven by affordability challenges. As home prices rise, many buyers, but especially younger individuals and seniors, are teaming up to share property ownership and reduce costs. Real estate professionals may be approached by clients interested in co-ownership as a means of entering the market together.
Real estate professionals should help their clients by understanding co-ownership’s unique requirements and potential challenges, equipping themselves to manage these multi-client transactions smoothly.
Key Elements of Co-Ownership
For co-owners, sharing a property involves splitting purchase costs, maintenance expenses, and property management responsibilities. Real estate professionals need to be prepared for a situation where there is more than one client, each bringing their own goals and budgets into the transaction.
Cost Division and Financing Logistics
Co-owners typically share major property expenses, including down payments, mortgage payments, taxes, and maintenance. It’s essential to know that while pooling resources can lower individual costs, each co-owner’s financial background, credit score, and income will be a factor. Clients should be advised to discuss how these costs will be divided among all parties and ensure there is a clear understanding of the price ranges and maximum costs that each party can comfortably afford.
Real estate professionals can also help by guiding clients toward mortgage lenders familiar with co-ownership arrangements who can clarify financial obligations, individual liabilities, and how payments will be structured. Understanding these mortgage products allows agents to manage expectations and facilitate clear discussions on financing.
Formalizing the Partnership with a Co-Ownership Agreement
A legally binding co-ownership agreement is essential for these arrangements. Real estate professionals should emphasize the importance of setting up this document with an experienced lawyer, as it outlines ownership percentages, maintenance responsibilities, cost allocations, managing contingencies and emergencies, as well as exit strategies. This agreement helps avoid future conflicts if one party wishes to sell, move, or otherwise adjust their role.
Planning for Resale or Exit Strategies
In a standard real estate transaction, one client often has complete control over resale decisions. With co-ownership, however, multiple parties need to agree on a resale plan from the outset. Real estate professionals should counsel co-owners to explore options for buyouts, refinancing, or other exit strategies. By preparing clients with realistic expectations around how the resale process will work, agents can preempt potential obstacles and ensure all co-owners are on the same page.
Adapting Communication and Coordination for Multiple Clients
Managing the transaction flow with multiple clients requires extra coordination. Real estate professionals can streamline communication by setting up group discussions, shared schedules, and virtual tools that allow each party to review properties and progress in real-time. This organized approach ensures that all clients remain fully informed, engaged, and aligned throughout the process. Working with multiple clients also means that agents need to balance each party’s availability for property viewings, offer decisions, and negotiations, ensuring seamless service for all involved.
Advising on Ownership Types and Property Fit
Finding a suitable property that meets the needs of all parties can be challenging. While co-ownership agreements provide legal structure, real estate professionals should also help clients consider which type of property best fits their intended co-ownership model. For example, clients may be better served with homes with separate living quarters or rental potential, offering flexibility in how space is used. Additionally, different ownership types, such as joint tenancy or tenants in common, affect how ownership shares are structured. Real estate professionals can add value by discussing the implications of each option, helping clients make informed choices that support their lifestyle and financial goals.
With co-ownership on the rise as an affordability solution, it is more likely that real estate professionals will be approached by clients looking to buy property together. By understanding the nuances of co-ownership agreements, financing, communication needs, and ownership structures, agents can help their clients through these transactions with confidence.
Bobby Puim is the Vice President of Operations at REC Canada, where he oversees all aspects of operations, including finance, IT infrastructure, team building, and business development. He also serves as Director of Operations and Business Development at REC Canada and as COO of the Broker’s Playbook Real Estate and Mortgage Podcast.
Bobby has a distinguished background in building thriving teams, launching start-ups, and establishing business systems. His work includes starting businesses that have evolved into sustainable, scalable seven-figure models. He is also very involved in charitable efforts that have positively impacted children across North America. He is passionate about helping people discover their purpose through disciplined self-reflection and is committed to creating systematic structures for the organizations he supports. He brings a wealth of knowledge and experience in several fields.
