Tag: Condo Ownership

My parents purchased a condo under my name, is there a way for them to legally take the condo back?

I live in Ontario, Canada. Due to some conflicts with my parents, they are claiming that by law they can force me to give back the condo to them (or force me to owe them the condo price) since they paid for it. Is this true? The condo was paid in full and it is under my name only.

Answer

The law does not help your parents at all if they have nothing registered against the condominium.  At law, it is yours and they have no legal claim.

However, Judges in Ontario can also apply the “Principles of Equity.” This is not because you and your parents are considered “common law” but because common law have no right in law to each other’s belongings, but they can make claims in equity.

Your parents would say that you are the legal owner, but they are the beneficial owner – or the owner in equity.  This means that nobody intended that you would be the owner of the condo, but instead, the intention was that you would hold the condo in “trust” for your parents and they would always be the “real owners” even though the title is registered in your name.   To succeed, they have to prove that it is more likely than not that this was the case and that they did not intend to give you the condominium as a gift.  You will need some evidence that they did intend to make the condo a gift to you.

If your parents cannot show that the property is a gift, or there is some ambiguity, they can also try to make a claim for “unjust enrichment.”   Essentially there is a claim it is unfair that you should profit from getting the condominium because they have suffered a large, unjustifiable, loss.   This is explained more in that podcast.  To summarize they need to prove to the judge:

1. you received a benefit
2. your parents suffered a loss that corresponds to the benefit (i.e. they are out the money from buying the condo)
3. there is no juristic reason (meaning a reason in law), for you to get the benefit and them to suffer a loss.

If you have been looking after the condominium, and paying the associated expenses without their help, it is hard for them to succeed because:

1. it shows that they did not intend to be the owners
2. you would suffer a loss and they would receive a benefit if they got the condo back and so they would be “unjustly enriched” – assuming you have paid more for those expenses than you would to rent the condo from them.

The Principles of Equity are tricky.  Little things can have a big effect on those cases, so it would be best for you to speak about the specifics of your case with a lawyer who knows about these kinds of cases.

Contact our family law department if you would like to book a consultation at 416-449-1400 or by emailing info@devrylaw.ca.

“This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.”