A Canadian Tenants in Common Agreement is a legal contract between two or more co-owners of real property who hold their interests as tenants in common rather than as joint tenants. Under Canadian property law, tenancy in common is a form of concurrent ownership where each co-owner holds a separate, undivided interest in the property that can be of equal or unequal proportions. The critical distinction from joint tenancy is that there is no right of survivorship: when a tenant in common dies, their interest passes through their estate rather than automatically transferring to the surviving co-owners.

The legal framework for tenancy in common varies by province but is generally governed by the applicable provincial real property legislation, including the Land Titles Act (Ontario, R.S.O. 1990, c. L.5; Alberta, R.S.A. 2000, c. L-4), the Land Title Act (British Columbia, R.S.B.C. 1996, c. 250), and equivalent legislation in other provinces. In Quebec, co-ownership is governed by the Civil Code of Quebec (CQLR c. CCQ-1991), which distinguishes between undivided co-ownership (indivision) and divided co-ownership (copropriete divise).

A tenants in common agreement is a private contract that supplements the land title registration by defining the relationship between the co-owners, including their respective ownership percentages, financial contributions, expense-sharing arrangements, decision-making processes, and procedures for the sale or transfer of interests. While not required by law, this agreement is strongly recommended to prevent disputes and provide a clear framework for managing the co-ownership relationship.

A Canadian Tenants in Common Agreement is needed whenever two or more parties acquire or hold real property together as tenants in common. This situation commonly arises when business partners purchase commercial or investment property together, when unmarried couples buy a home, when family members co-own property, or when investors pool resources to acquire real estate.

The agreement is particularly important when the co-owners are contributing unequal amounts to the purchase price, as it documents each party's financial contribution and corresponding ownership percentage. Without a written agreement, disputes over ownership shares, expense allocation, and decision-making authority are common and can lead to costly litigation or a court-ordered partition and sale under the applicable provincial Partition Act.

The agreement is also essential when co-owners have different long-term intentions for the property, such as one owner wishing to use the property as a primary residence while another treats it as an investment. A well-drafted agreement addresses these differences by defining usage rights, expense obligations, and exit mechanisms, including a right of first refusal that gives existing co-owners the opportunity to purchase a departing co-owner's interest before it is offered to third parties.

An effective Canadian Tenants in Common Agreement must identify all co-owners by their full legal names and addresses, and must describe the property by both its municipal address and legal description as it appears on the certificate of title registered at the applicable provincial land titles office.

The ownership interests section must specify each co-owner's percentage of undivided interest, which determines their share of financial obligations, income, and proceeds upon sale. The agreement should clearly state that the co-ownership is as tenants in common and that no right of survivorship applies. The financial contributions section should document each party's initial contribution to the purchase price, down payment, and closing costs.

The ongoing expenses section should define how mortgage payments, property taxes, insurance, maintenance, and repair costs are shared among the co-owners. A right of first refusal clause protects existing co-owners by requiring a selling co-owner to offer their interest to the others before accepting a third-party offer. The dispute resolution mechanism should specify whether disputes will be resolved through mediation, arbitration under the ADR Institute of Canada rules, or litigation.

The governing law clause should specify the province where the property is located, as real property matters are governed by provincial law. The agreement should reference the applicable Land Title Act or Land Titles Act and any relevant partition legislation. All co-owners should sign the agreement, and it is advisable to have signatures witnessed or the agreement notarized.