How to Protect Your Property in the Event of a Spouse’s or Co-Owner’s Death

How to Protect Your Property in the Event of a Spouse’s or Co-Owner’s Death

What would happen if the person with whom you purchased your home or income property died? Have you planned ahead to avoid finding yourself in the lurch?


Imagine learning after your partner’s death that half of your house now belongs by right to his ex-spouse. Or that your friend (and co-owner) passes away without any legal provisions that would financially protect you. Hello, trouble! Whether you are buying real estate with your life partner, common-law spouse or a loved one, it is important to secure the position of either party in the event of death as half of an asset does not automatically revert to the other owner. Here’s how you can look after your own interests.

Update Your Will

Some people feel secure because they already have a will, when in fact they should consider updating certain clauses! Has your situation changed since you signed? Who are your heirs? Who will have power of attorney for you in the event of incapacity? Will your sister become the sole owner of the building you jointly purchased, or will 50% of its value go to your children? Will the spouse you’ve been living with for the last five years and who pays half of the expenses of the house have a share if you die? All these questions must be answered, and these points clarified in your will.

For Couples: The Cohabitation Contract

Another, less expensive, alternative to a will is the cohabitation contract for common-law couples; however, this document is useless if the co-owner of your home is not your common-law spouse, but, for instance, a friend. The cohabitation contract, also known as a contract between common-law partners, includes details about what has been agreed concerning the payment of property-related costs. For example, if one of the owners assumed the totality of the down payment and wishes to recover the entire amount if the house is sold. The clearer the terms and conditions on this piece of paper are, the more straightforward the succession will be.

For Non-Couples: The Undivided Co-Ownership Agreement

This contract establishes the property managerial rights and responsibilities of the co-owners. Will they share the expenses equally? Does one of the co-owners pay less than the others because they take care of maintenance? What is to happen in the event of a death? The undivided co-ownership agreement is used to put down all this information down in writing. Each of the parties signs it in front of witnesses and it is usually valid for 30 years.

Iron-Clad Insurance Policy

Another option is to purchase insurance covering the financial needs of your real estate partner in the event of your death. Indeed, it can be difficult, if not impossible, to pay all the fees alone when you are used to sharing them.

The Promise to Purchase: What Happens if One the Parties Dies

The promise to purchase is not a trivial document. On the contrary, it is a real contract that forces those who sign it to buy the house according to the set price and conditions. So, what happens if one of the parties dies before the sale is concluded? According to the Quebec Civil Code, “upon the death of one of the parties, the rights and obligations arising from a contract pass to his heirs, if the nature of the contract permits it.” However, the heirs may be able to cancel the contract if they can prove that the deceased did not have the financial means to sign the promise to purchase.

As you can see, it can be quite a challenge to defend your interests and win your case after a death. An ounce of prevention is worth a pound of cure. It’s never too late to update your documents!

RE/MAX Québec

By RE/MAX Québec

By RE/MAX Québec

A leader in the real estate industry since 1982, the RE/MAX network brings together the most efficient brokers.