Partition and Sale of Co-Owned Property in Ontario

Partition is the legal process that ends co-ownership of property when owners can’t agree on what to do with it. If you own property with someone else — a former spouse, family member, business partner, or anyone else — and you want out but they refuse to sell or buy you out, partition forces a solution.

Ontario’s Partition Act gives co-owners the right to ask the court to either physically divide the property (partition) or sell it and split the proceeds (sale). For most residential and commercial properties, physical division isn’t practical, so the court typically orders the property sold and the money divided according to each owner’s share.

Common situations where partition becomes necessary:

Relationship breakdowns: Former couples who jointly own a home but can’t agree on selling or one buying out the other.

Family disputes: Siblings who inherit property together but have different plans for it—one wants to keep it, another wants to sell.

Business partnership disputes: Former business partners who jointly own commercial property and can’t agree on its future.

Investment property disagreements: Co-investors with conflicting goals for the property’s use or sale.

Stalemate situations: Any scenario where co-owners are deadlocked and unable to move forward voluntarily.

Partition is often the last resort after negotiation, mediation, and buyout discussions fail. It provides a legal exit strategy when co-ownership has become unworkable.

The Partition Act gives co-owners a prima facie right to partition or sale — meaning you’re presumed to have the right unless there are exceptional circumstances.

Step 1: Assess your ownership interest

First, confirm you’re actually a legal co-owner on the property title. The court needs evidence of your ownership percentage, typically shown on the deed or through other legal documents.

Step 2: Attempt negotiation

While not legally required, attempting to negotiate with co-owners demonstrates reasonableness to the court. Document your efforts — this shows you tried to resolve things amicably before going to court.

Step 3: Start a partition application

File an Application for Partition or Sale with the Ontario Superior Court of Justice. Include evidence of:

• Your ownership interest
• The property details and current condition
• Your attempts to resolve the dispute
• Why partition or sale is necessary

Step 4: Serve the application

Serve the application on all other co-owners. They have the right to respond and may oppose the application or raise issues about how proceeds should be divided.

Step 5: Court hearing

The judge reviews the evidence and hears from all parties. Unless there are exceptional circumstances, the court will grant the order.

Step 6: Sale of the property

The court typically appoints a referee or listing agent to handle the sale. The property gets listed at fair market value, and once sold, proceeds are distributed according to each owner’s share after deducting sale costs and any liens or mortgages.

While co-owners have a strong presumptive right to partition, the court has discretion to refuse in some circumstances:

Malicious, oppressive, or vexatious motives: If you’re bringing the application to harass or punish the other owner rather than genuinely wanting to exit co-ownership, the court may refuse.

Corporate ownership: If the property is owned by corporations rather than individuals, different rules apply and partition might not be available.

Tenanted property: If the property is occupied by tenants, the court must consider their rights and may structure the sale differently.

Agreement to the contrary: If co-owners signed a co-ownership agreement specifically waiving partition rights, the court might enforce that agreement instead.

Special circumstances: In rare cases where partition would cause undue hardship or injustice disproportionate to the benefit gained.

Disputed ownership shares: If co-owners disagree about each person’s percentage ownership, the court must resolve this first. Evidence includes the original purchase documents, financial contributions, and any agreements between owners.

Occupation and rent: If one co-owner lives in the property while others don’t, courts may credit the occupying owner for maintaining and paying expenses, or charge them notional rent for exclusive use. These calculations can be complex and contentious.

Improvements and contributions: Co-owners who paid for renovations, repairs, or mortgage payments beyond their share may claim adjustments to the proceeds distribution. Proving these contributions requires documentation—receipts, bank statements, and records.

Mortgages and liens: All mortgages and liens must be paid from sale proceeds before distribution. If one co-owner created debts against the property without the other’s consent, disputes arise about who should bear that burden.

Buyout attempts: Sometimes one co-owner wants to buy out the others to avoid sale. The court may facilitate this by ordering an appraisal and giving owners the opportunity to purchase at fair market value before ordering public sale.

Document everything: Keep records of all contributions —down payments, mortgage payments, renovation costs, property taxes, and maintenance expenses.

Get an appraisal: Obtain an independent property appraisal early to establish fair market value and support your position on distribution.

Maintain the property: If you’re occupying the property, keep it well-maintained to preserve value and show good faith.

Communicate in writing: Keep email records of all negotiations and offers to demonstrate your reasonableness if the matter goes to court.

Act quickly: Don’t delay once it’s clear co-ownership isn’t working. Property costs continue, and relationships deteriorate further with time.

If you’re stuck in co-ownership with someone who won’t cooperate, partition provides a legal exit. While it takes time and money, it’s often the only way forward when voluntary solutions fail.

Contact Pinto Shekib LLP at info@pintoshekib.ca or 416.901.9984 to schedule a confidential consultation about partition and sale applications or co-ownership disputes.