What does owning an undivided interest in Ontario property mean?
An undivided interest means you own a percentage share of the whole property rather than a specific physical portion of it. For example, if you and a friend each hold a 50% undivided interest, neither of you owns the front half or the back half — you both own 50% of every square metre of the land and building together.
In Ontario, undivided interests are the defining feature of ownership as tenants in common. Each co-owner's share can be different sizes (60/40, 75/25, etc.), and each share can be mortgaged or sold independently without the other owner's consent, unless a co-ownership agreement restricts that right.
The practical consequences are significant. If one co-owner wants out but the other does not, either party may apply to the Superior Court of Justice for a partition or sale of the property under the Partition Act. A court can order the land physically divided if that is practical, or order it sold and the proceeds split according to each party's interest if division is not practical.
Most co-owners address these issues in advance through a written co-ownership agreement that sets out buyout rights, cost sharing, and decision-making procedures before a dispute arises.
Key takeaways
- An undivided interest is a percentage of the whole property, not a specific area.
- Co-owners as tenants in common can hold unequal shares.
- Each share can be sold or mortgaged independently unless a co-ownership agreement prevents it.
- The Partition Act allows a court to order a forced sale if co-owners cannot agree.