British Columbia Law
You Bought a Home - Now What?
One of the biggest investments any of us will make is buying a home. But the cost is so large today that most of us cannot afford to buy a home by ourselves — we need help from spouses or family members, not just the bank. So how do you protect your investment — and everyone involved?
Securing Loans with Mortgages
Lenders — including family members who contribute money toward a purchase — can protect themselves by securing their loans with mortgages registered on the title to the home at the BC Land Title Office. A registered mortgage gives the lender legal priority when the home is eventually sold: before any sale proceeds reach the owners, all registered mortgages must be discharged (repaid in full).
This applies equally to institutional lenders (banks, credit unions) and to family members. If your parents gifted or loaned you the down payment, a registered mortgage or promissory note may be the right way to protect their contribution — particularly if your relationship with your partner later breaks down.
Written Agreements Between Co-Owners
Spouses and other investment partners can protect themselves with a written co-ownership or partnership agreement specifying:
- How much each person contributed to the purchase (down payment, renovation costs, mortgage payments)
- How those contributions will be recognized or repaid on sale
- How the net sale proceeds will be distributed after all costs and mortgages are paid
- What happens if one party wants to sell and the other does not
- How disputes between co-owners will be resolved
Without such an agreement, you are relying on default legal rules that may not reflect your intentions — or your actual contributions.
The Common-Law Trap
Under BC's Family Law Act (FLA), a person who lives in a marriage-like relationship for two consecutive years becomes a spouse with property rights. This means that your "roommate" who moves in and contributes to household expenses could, two years later, have a legal claim to a share of your home — even if their name is not on the title.
BC courts have also recognized claims based on unjust enrichment and constructive trust, even outside of formal spousal relationships. If one person contributes labour, money, or sacrifices career opportunities that benefit another person's property, a court may award compensation or even a beneficial interest in the property.
The best time to clarify your intentions — in writing — is before there is any dispute.
Pre-Nuptial, Cohabitation, and Marriage Agreements
An agreement made with a spouse or partner before (or during) the relationship is one of the most powerful tools in BC family law. These agreements go by several names:
- Pre-Nuptial Agreement — made before marriage
- Cohabitation Agreement — made when living together without marriage
- Marriage Agreement — made during marriage
Under Part 5 of the FLA, these agreements can define what property each person brings into the relationship, what will be excluded from division on separation, and how property accumulated during the relationship will be divided. They can also address spousal support.
For a cohabitation or marriage agreement to be enforceable in BC, each party must have received Independent Legal Advice (ILA) from their own lawyer before signing. An agreement signed without ILA can be set aside by a court.
Protecting the Family Home on Separation
When a relationship breaks down, the family home is often the most significant — and most emotionally charged — asset. Under the FLA, the family home (the property ordinarily occupied as the family's primary residence at the time of separation) is almost always family property subject to equal division, regardless of whose name is on the title.
Even a home owned by one spouse before the relationship began can be subject to division of the increase in value that occurred during the relationship.
Understanding how BC's property division rules apply to your home — and planning ahead with the right agreements — can save enormous cost and conflict later.
Before You Sign Anything
Always read every document carefully before signing. If you are buying property jointly, entering a co-ownership arrangement, or being asked to sign a cohabitation or marriage agreement, obtain independent legal advice before you put pen to paper. What you sign today can affect your rights for years to come.
Sea to Sky Law™ advises BC homeowners, couples, and co-purchasers on protecting their real estate investments — from the day they buy to the day they sell or separate. Contact Andrew Liggett BA JD CD for practical, plain-language advice tailored to your situation.
This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.