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Legal blog > Real estate > Purchase of real estate and unequal down payments by spouses

Purchase of real estate and unequal down payments by spouses

When spouses purchase a property as co-owners and one party contributes a higher amount financially than the other, it is imperative to mention it in the notarized purchase agreement.

«Love, love, when you possess us, we can indeed say: goodbye caution!»
Jean de La Fontaine

A multitude of unmarried couples are building a life together, which often begins with the purchase of a residence.

Thus, after going through difficult times, a couple living in common-law union reconciles and agrees to have a residence built. Although the property is in both parties' names, each owning half, Mr. contributes $205,000 financially, while Mrs. contributes none. They agree that Mrs. will pay $500 monthly towards the mortgage, and Mr. will cover the other expenses.

After eight years of living together, the couple ends their marital relationship. Mrs. requests from the court* that the proceeds from the sale of the residence be divided equally. Mr., although not contesting that Mrs. owns 50% of the residence, requests that his initial financial contribution be reimbursed to him first, and the remainder be shared equally between the parties.

According to the Civil Code of Quebec, "the shares of co-owners in a property are presumed to be equal." This presumption can be rebutted by a verbal or written agreement. The mere fact that one co-owner contributed more financially than the other does not rebut this presumption of equality."

Due to lack of tangible evidence, the court orders an equal division of the proceeds from the sale. The Court reminds that throughout their union, Mr. always accepted "unequal contribution towards the payment of the price, and it is inappropriate to change his mind at the time of separation."

When common-law partners purchase a property jointly, and one party contributes more financially than the other, it is imperative to mention it in the notarial purchase deed. In the absence of this disclosure, one party will realize that love has no price.

*C.S. 505-17-006968-145

François Forget, notary and legal advisor as well as the entire Notaire-Direct team, are at your service to ensure the preparation of your legal documents and answer all your legal questions.
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