Buying a Home Together, The Conversations Most People Avoid

Buying a home with another person can be a beautiful thing.

Sometimes it’s a married couple starting a life together. Sometimes its common law partners trying to enter an expensive housing market. Sometimes it’s siblings, friends, business partners, or parents and adult children combining resources to create stability and affordability.

Home ownership has changed over the years. More people are purchasing together because financially it makes sense, and sometimes because emotionally it makes sense too.

But there’s an important truth that people avoid talking about.

All relationships end

Sometimes relationships end because we choose for them to end. Divorce, separation, friendships changing, family disagreements, business partnerships dissolving. Sometimes relationships end because one person dies.

Whether the ending is intentional or unexpected, there needs to be a plan for what happens to the property.

And ideally, that conversation happens at the beginning, while everyone still likes/loves each other and has good thoughts toward one another, not during conflict, grief, illness, or financial stress.

The Questions Worth Asking Before You Buy

When purchasing property with another person, here are some of the most important conversations to have early:

How will ownership be registered?

In Canada, ownership is typically registered as either:

• Joint Tenants
• Tenants in Common

The difference matters more than most people realize.

With joint tenancy, ownership automatically transfers to the surviving owner if one person dies.

With tenants in common, each person owns a specific share of the property, and their share becomes part of their estate if they pass away.

There is no universal “best” structure. The right choice depends on the relationship, financial contributions, long-term goals, and estate planning intentions.

What happens if someone wants out?

Life changes.

Someone may want to move. A relationship may end. One party may want to sell while the other wants to stay.

Before purchasing together, it’s important to discuss:

• Who has the right to remain in the property
• Whether one party can buy the other out
• How the home would be valued – I recommend a third-party appraiser NOT a realtor
• What happens if neither person can afford the home independently
• How legal costs and sale proceeds would be handled

These are uncomfortable conversations until they become necessary conversations.

Should there be an agreement in place?

My suggestion is YES.

Whether it’s called a cohabitation agreement, ownership agreement, or partnership agreement, having something in writing matters. A means of breaking up on paper while you still have kindness towards each other. 

That agreement can be prepared by a lawyer, a mediator, or privately drafted and professionally notarized.

The important part is not perfection. The important part is clarity.

A written agreement helps reduce confusion, conflict, and assumptions later.

What about life insurance?

Life insurance is often overlooked when purchasing jointly.

Your work policy is not enough, and typically only covers one year of salary. 

If one person’s income or contribution is essential to maintaining the home, both parties should consider what happens financially if the other person dies unexpectedly.

The goal is protecting stability for the surviving owner, especially during grief.

Don’t Forget the Tax and Legal Side

Other important considerations include:

• Land transfer tax implications
• Estate planning
• Wills and beneficiary structures
• Down payment tracking
• Unequal contributions toward expenses or ownership
• Future refinancing or borrowing plans

None of these conversations are mortgage requirements.

They are simply sensible planning conversations.

Because purchasing property together is not only a financial transaction. It’s a long-term legal and emotional relationship tied to one of the largest assets most people will ever own.

The issue is rarely whether relationships end.

The important part is how they end, and how the property is settled when the end is here. 

If you are in a position where you are terminating a relationship, call me, I may be able to help.