BC Realtor Tenancy-in-Common Guide: Fractional Ownership, TIC Agreements & Co-Buying (2026)
Co-buying has become a significant trend in BC as affordability pushes buyers toward shared ownership. Tenancy-in-common is the most flexible co-ownership structure — but without a proper co-ownership agreement, it can become a legal nightmare. This guide gives you the framework to advise co-buyers and help them structure ownership correctly.
1. TIC vs. Joint Tenancy vs. Strata
| Feature | Tenancy-in-Common | Joint Tenancy | Strata |
|---|---|---|---|
| Ownership shares | Defined % (can be unequal) | Equal shares only | Individual strata lots |
| Right of survivorship | No — share passes through estate | Yes — share passes to survivors | No — lot passes through estate |
| Can sell own share? | Yes (undivided interest) | Must sever joint tenancy first | Yes (separate title) |
| Can mortgage own share? | Yes (undivided share — limited lenders) | Must sever to mortgage independently | Yes (standard title mortgage) |
| Estate planning | Flexible — each owner controls their share | Automatic survivorship | Flexible — independent title |
| Dispute resolution | Co-ownership agreement; partition as last resort | Same | Strata dispute process (CRT, BCSC) |
| Typical use | Co-investors, friends buying together, family co-buy | Married couples, partners | Condo/townhouse buyers |
Registering TIC vs. Joint Tenancy at LTO
At the Land Title Office, ownership registration must specify the form of tenancy. If two buyers are registered as "A and B as joint tenants," that is joint tenancy with survivorship. If registered as "A (50%) and B (50%) as tenants in common" or with unequal percentages, that is TIC. Confirm the form of tenancy at registration before completion — it is difficult to change after the fact without tax implications and legal costs.
2. Why Buyers Choose TIC in BC
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Affordability
Two or more buyers pool resources to qualify for a home neither could afford alone. Particularly common in Metro Vancouver, Victoria, and Kelowna where entry prices exceed single-buyer capacity.
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Family Co-Purchase
Parents buying with adult children, or siblings buying together. TIC allows unequal shares (e.g., parent contributes 60%, child 40%) and independent estate planning for each party.
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Investment Partnership
Two investors purchase a rental or development property. TIC allows each party to hold their share independently, claim their proportionate share of income/losses on their own tax return, and exit independently.
3. Unequal Shares: How They Work
One of TIC's key advantages over joint tenancy is that shares can be unequal. This is important when co-owners contribute different amounts or have different income levels.
| Element | How It Works in TIC | Example |
|---|---|---|
| Ownership percentage | Recorded at LTO — e.g., 60/40 split | Parent 60%, child 40% on $1M home |
| Purchase cost allocation | Each party pays their percentage of down payment and mortgage | Parent pays $300K, child pays $200K on $500K down |
| Ongoing costs | Proportionate to share — mortgage, taxes, maintenance | Parent pays 60% of every expense |
| Rental income (if rented) | Each owner declares their share on their own tax return | Parent declares 60% of rental income |
| Capital gain on sale | Each owner reports their share of gain | On $200K gain: parent reports $120K, child $80K |
| Property tax bill | Issued to all owners jointly — must agree on payment | Co-ownership agreement should specify who pays |
4. The Co-Ownership Agreement: What Must Be Covered
A co-ownership agreement is not optionalfor TIC buyers — it is essential. Without one, owners are governed only by BC's default law, which provides almost no practical structure for disputes. The agreement should be drafted by a lawyer before or at the time of purchase.
Financial Provisions
- ✓How mortgage payments are split (proportionate to share or equal?)
- ✓How property taxes, insurance, and maintenance costs are allocated
- ✓Reserve fund for capital repairs: how much, who holds it
- ✓What happens if one owner can't pay — right to advance and recover
- ✓How rental income (if applicable) is split and managed
- ✓Process for approving major capital expenditures
Exit & Transfer
- ✓Right of first refusal: other owners can match any outside offer
- ✓Buyout mechanism: how share is valued (appraisal? formula?)
- ✓Forced sale trigger events: death, divorce, financial hardship
- ✓Timeline for exercising ROFR (30–60 days typical)
- ✓Process for bringing in a replacement co-owner
- ✓What happens if co-owners can't agree — mediation/arbitration first
Use & Occupation
- ✓How occupancy is divided (especially if one party lives there)
- ✓Rent credit if one party occupies exclusively
- ✓Subletting or short-term rental rules
- ✓Decision-making for repairs and renovations (unanimous? majority?)
- ✓Use restrictions relevant to owners' plans
- ✓Pets, renovation noise, and shared utility rules
Dispute Resolution
- ✓Mandatory mediation before legal action
- ✓Arbitration clause for binding resolution without court
- ✓Partition restriction: agree not to partition for specified period
- ✓Process for changing the agreement (unanimous required?)
- ✓Governing law: BC courts have jurisdiction
5. Mortgage Options for TIC Buyers
Common Approach: Joint Mortgage
Most TIC buyers use a single joint mortgage registered against the whole property, with all owners as co-borrowers.
- ✓Available from all major lenders including banks and credit unions
- ✓Each co-borrower's income used to qualify (combined buying power)
- ✓Lower rate — standard residential mortgage
- ⚠Each co-borrower fully liable for the entire mortgage
- ⚠Default by one affects all owners' credit
Alternative: Separate Share Mortgages
Each TIC owner mortgages their own undivided interest separately. Rare in residential BC but possible with specialized lenders.
- ✓Each owner independently liable only for their own mortgage
- ✓One owner can pay off while other stays mortgaged
- ⚠Very few lenders offer this product for residential property
- ⚠Higher rates; lower LTV; specialist mortgage broker required
- ⚠Lender requires strong co-ownership agreement as condition
⚠️ Joint Mortgage + TIC = Personal Liability Risk
The most important thing to explain to co-buying clients: a joint mortgage means each person is 100% liablefor the entire debt — not just their ownership percentage. If Co-Owner B stops paying and can't be reached, Co-Owner A must cover the entire mortgage or face default and foreclosure of their own interest. The co-ownership agreement should address this scenario with a right to advance and recover from the defaulting party.
6. Property Tax & PTT Treatment
| Tax Issue | TIC Treatment | Notes |
|---|---|---|
| Property Transfer Tax | Each buyer pays PTT on their proportionate share of purchase price | First-time buyer and newly built home exemptions apply per buyer based on their share and eligibility |
| Annual property tax | One bill to property; co-owners must agree internally on who pays what share | Co-ownership agreement should specify payment obligations |
| Home owner grant | Each eligible owner can claim their own HOG on their share (if primary residence) | Each must separately apply; grant reduces one owner's share of tax |
| Speculation & vacancy tax | Each owner completes their own declaration | If one owner is non-resident, their share attracts SVT — other owners' exemptions are independent |
| Capital gains on sale | Each owner reports their proportionate share of gain on their own return | Principal residence exemption available only for the share the owner actually occupies |
| Rental income | Each owner declares their share proportionate to ownership on their own T1 | Allows income splitting if one owner is in a lower bracket |
7. Partition Rights: The Forced Sale Option
Any TIC owner can apply to the BC Supreme Court for a partition order under the Law and Equity Act. This is an unconditional statutory right — co-ownership agreements generally cannot waive it permanently (though they can delay it through a dispute resolution clause).
Partition in Kind
Court physically divides the property between owners. Rare in residential TIC — almost impossible for a single home, more feasible for acreage or multiple units.
- •Requires physical divisibility
- •Each owner receives a separate titled parcel
- •Court can order compensation if shares aren't equal in value
Partition by Sale
Court orders the property sold and proceeds distributed according to ownership shares. The most common outcome for residential TIC disputes.
- •Forced sale — timing and price not controlled by owners
- •Can be ordered even if one owner objects
- •Legal costs deducted from proceeds
⚠️ Partition Cannot Be Fully Waived
Courts have held that pre-contractual agreements purporting to waive partition rights indefinitely are not enforceable. However, courts will consider the co-ownership agreement and require parties to exhaust contractual dispute resolution (mediation, buyout procedures) before ordering a partition sale. A strong co-ownership agreement with a reasonable mediation clause will delay and usually prevent partition — but it cannot eliminate the right permanently.
8. TIC & the First-Time Home Buyer Exemption
BC's First-Time Home Buyers' Program exempts eligible buyers from PTT. In a TIC purchase, each buyer's exemption eligibility is assessed independently — which can produce a partial exemption if one buyer qualifies and another does not.
Example: Mixed Eligibility TIC Purchase
Purchase price: $800,000 | Buyer A owns 50% ($400,000 share) | Buyer B owns 50% ($400,000 share)
Buyer A is a first-time buyer eligible for the exemption (share under $500K threshold for full exemption)
Buyer B has owned property before — not eligible
Buyer A
PTT on $400K = ~$6,000
Less exemption = $0 (full exemption if under $500K threshold)
Saves ~$6,000
Buyer B
PTT on $400K = ~$6,000
No exemption available
Pays $6,000
9. Due Diligence for TIC Buyers
Legal Setup
- ✓Engage a lawyer to draft co-ownership agreement before or at purchase
- ✓Confirm TIC registration at LTO with correct percentages
- ✓Each owner should have independent legal advice
- ✓Review wills — ensure TIC shares are addressed in each owner's estate plan
- ✓Confirm strata docs if applicable (rental restrictions, pets)
Financial Planning
- ✓Joint credit check — both parties must qualify on one mortgage
- ✓Confirm down payment sources: gift vs. own funds (affects mortgage docs)
- ✓Budget for co-ownership agreement legal fees ($1,500–$5,000+)
- ✓Discuss what happens if one owner wants to exit within 3 years (FHSA rules, capital gains)
- ✓Agree on a reserve fund for shared expenses before purchasing
10. 6 Client Conversation Scripts
Script 1: Friends Considering Co-Buying
“My friend and I want to buy together because we can't afford to buy on our own. Is that a good idea?”
“Co-buying can be a great path to homeownership in this market — and tenancy-in-common is the right legal structure for friends because it lets you hold unequal shares if your contributions are different. The most important thing before you go any further is to have a real conversation about what happens if one of you wants out — gets a new job in another city, wants to buy solo in 3 years, or has a financial crisis. You need a co-ownership agreement that addresses those scenarios before you sign anything. I can introduce you to a real estate lawyer who handles this. Once you have that framework, the purchase itself is straightforward.”
Script 2: Parents Helping a Child Buy
“We want to help our daughter get into the market by going on title with her. Should we be 50/50?”
“The split should reflect your actual contributions — if you're putting in 40% and she's putting in 60%, register 40/60. TIC lets you hold different shares, which is important for your estate planning too. One thing to think through: if you're already homeowners, your share of the property won't qualify for the first-time buyer PTT exemption — but your daughter's share will. And if either of you is subject to the Speculation and Vacancy Tax, your TIC share will be assessed separately. I'd strongly recommend you both see a lawyer to structure the co-ownership agreement and talk to an accountant about the tax implications before we write an offer.”
Script 3: Clients Worried About What Happens If One Partner Wants Out
“What if my co-buyer decides to sell their share in 2 years but I don't want to sell?”
“That's the most common fear in TIC — and it's exactly what a right of first refusal clause in your co-ownership agreement handles. Under a ROFR clause, if your co-buyer wants to sell, you get the first opportunity to buy their share at the same price they've been offered. If you can't or don't want to match, they can proceed with the outside sale. The agreement can also restrict sales to people you both approve, and require a minimum holding period before any sale can happen. This is why the co-ownership agreement is non-negotiable — it's your protection.”
Script 4: Investor Client Asking About TIC for Rental Property
“I want to buy a rental property with my business partner. How should we structure it?”
“TIC is the standard structure for investment co-buyers. You can hold proportionate to your capital contribution — say 60/40 if you're putting in more. Each of you declares your share of rental income and claims your share of expenses on your own tax return, which gives you income-splitting flexibility. The co-ownership agreement needs to cover how decisions about tenants, renovations, and refinancing are made, and what happens if one partner wants to exit. For a rental property I'd also want to discuss whether a partnership structure or corporation makes more sense depending on your long-term plans — that's worth reviewing with your accountant.”
Script 5: Client Asking About TIC and Joint Tenancy Difference
“My partner and I are buying together. Should we be joint tenants or tenants in common?”
“It depends on your priorities. Joint tenancy means if one of you passes away, the other automatically inherits the full property — no estate process needed. It's simpler and that automatic survivorship is what most couples want. Tenancy-in-common means each of you controls your own share — you can leave your half to someone else in your will, you can hold different percentages, and you can sell your share independently. For married couples or committed partners buying their home together, joint tenancy is most common. For investment property, business partners, or situations where you want estate planning flexibility, TIC is better. What matters most to you both?”
Script 6: Client in a TIC Dispute Asking About Options
“My co-owner and I have had a falling out. I want to sell but they refuse. What are my options?”
“First, check your co-ownership agreement — it should have a dispute resolution process and a buyout mechanism that applies when co-owners disagree. That's the first path to try: offer to buy them out at a fair appraised value, or accept a buyout from them. If the agreement has a mediation clause, go through that first. If all else fails, you have a legal right under BC law to apply to court for a partition order — the court can force a sale of the property and split proceeds according to your ownership shares. That's the last resort because it's expensive and slow, but it exists. Let me connect you with a real estate lawyer to assess your options.”
FAQ
What is tenancy-in-common in BC?↓
Tenancy-in-common (TIC) is a form of co-ownership where two or more people hold undivided interests in a property. Each owner has a defined percentage share (which can be unequal), can independently sell or mortgage their share, and can pass their share to heirs. There is no right of survivorship — if one owner dies, their share passes through their estate, not automatically to the other owners.
What is the difference between tenancy-in-common and joint tenancy in BC?↓
The key difference is the right of survivorship. In joint tenancy, if one owner dies, their share automatically passes to the surviving owners — not through the deceased's will or estate. In tenancy-in-common, there is no right of survivorship — each owner's share passes through their estate. Couples typically use joint tenancy; co-investors or family members buying together often prefer tenancy-in-common for estate planning flexibility.
Can one tenancy-in-common owner sell their share without the others' consent in BC?↓
Legally yes — a TIC owner can sell or transfer their undivided interest without the other owners' consent, unless a co-ownership agreement restricts this. However, in practice it is very difficult to find a buyer for an undivided interest in a property. This is why a well-drafted co-ownership agreement with a right of first refusal provision is essential before purchasing as TIC.
What is a partition order in BC for tenancy-in-common?↓
A partition order is a court order under BC's Law and Equity Act that forces either a physical division of the property (partition in kind, if divisible) or a sale of the property with proceeds split according to ownership shares. Any TIC owner can apply for partition — it is a statutory right that cannot be waived. This is the 'nuclear option' when co-owners can't agree on what to do with the property.
Can tenancy-in-common co-buyers get separate mortgages in BC?↓
Most residential lenders require all TIC owners to be on one mortgage registered against the whole property. Individual share mortgages are uncommon in BC residential real estate and require specialized lenders. Some credit unions and private lenders will consider individual share financing for well-structured TIC arrangements with a strong co-ownership agreement. Consult a mortgage broker with TIC experience early in the planning process.
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