Co-Owners Who Disagree: How Does Partition and Sale Work in Ontario?

Short answer: when co-owners of a home in Toronto, Hamilton or elsewhere in Ontario cannot agree on what to do with it, one of them can apply to court under Ontario's Partition Act. For a house, the court usually orders a sale and splits the proceeds. An independent appraisal helps both sides see what the property is really worth, and often settles things before it gets that far.

What Is Partition and Sale in Ontario?

The Partition Act lets a joint tenant or tenant in common ask the court to either physically divide a property (partition) or order it sold and the money shared (sale). A single home cannot be split in half in any practical way, so for houses and condos the request is almost always for a sale.

Courts generally treat a co-owner's request as something they are entitled to, and refuse it only in limited circumstances. Your lawyer can tell you whether any exception might apply to you.

Who Uses Partition and Sale?

• Siblings who inherited a home together and disagree about selling or keeping it
• Former common-law partners who own a home jointly
• Friends or relatives who bought together and now want different things
• Investors in a shared rental property who want to exit

Married spouses usually deal with the matrimonial home through family law instead; see how the matrimonial home is valued.

How Does the Process Usually Work?

In broad terms, one owner brings an application, the other responds, and a judge decides whether a sale should be ordered and on what terms, such as who chooses the agent, how the list price is set and how the proceeds are divided. Claims for things like unequal contributions to the mortgage, taxes or repairs may also be raised.

Every case is different, and the details matter. A real estate or litigation lawyer should guide you through the steps.

How Is the Property Valued in a Partition Dispute?

The question is usually the home's current fair market value: the price it would likely sell for on the open market. A certified appraiser reaches that value mainly through comparable sales of similar homes nearby, adjusted for differences in size, condition, lot and location.

A good appraisal for a dispute is prepared to the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) and explains its reasoning clearly, so both owners, their lawyers and if needed a judge can follow it.

What if one owner won't allow access?

An appraiser can still complete a report from the exterior, records and photos, with the assumptions about interior condition stated plainly. It is better to agree on access if you can, because an interior inspection gives a more reliable value.

Can One Co-Owner Buy Out the Other?

Yes, and many disputes end this way. Once both sides have a neutral number, a buyout often becomes the cheaper, faster option. Some co-owners jointly hire one appraiser; others each get their own. Either way, an independent value takes much of the heat out of the negotiation. For tips on agreeing a fair figure, see how a buyout price is set.

How Much Does a Partition Appraisal Cost?

Appraisals for legal disputes are quoted individually. The fee depends on the property, whether one or more dates are needed and whether the report must be prepared for court or testimony. You receive the scope and fee in writing before anything is booked. Learn more about our court appraisal service across the Greater Toronto and Hamilton Area.

What You'll Need to Get Started

• The property address and the names of all registered owners
• Your lawyer's contact details, if one is involved
• Arrangements for access, or photos if access is not possible

Related Articles

• What makes an appraiser a good expert witness?
• Retrospective appraisals in legal disputes
• Buying out your spouse: how is the price set?

This article is general information, not tax, legal or financial advice. Please speak with your accountant, lawyer or lender about your situation.