Tag: Condo Ownership

Family Lawyer John Schuman was asked the following question:

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, anyone know if this is true? The condo was paid in full and it is under my name only.

John’s 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 “Principals of Equity.”  The Principals of Equity are more fully described in this podcast on Common Law Couples and Property Division.  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 stuff, 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 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 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 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 expense than you would to rent the condo from them.

The Principals of Equity are tricky.  Little things can have a big effect on those cases (again that is all explained in the podcast).  So, it would be best for you to speak about the specifics of your case with a lawyer who knows about these kind of cases.

You can get a lot more information about Ontario Family Law issues, including property division, support, and most other common family law issues by downloading this $9.99 e-book for Kindle, Kobo, or iPad/iPhone/Mac or ordering the paperback version.  But, to keep out of trouble, it is always best to speak with a top family law lawyer.

John Schuman is a Certified Specialist in Family Law.  He is the partner managing the Family Law Group at Devry Smith Frank LLP, a full service law firm located near Eglinton and the Don Valley Parkway in Toronto. Learn more about John! Call him at 416-446-5080 or 416-446-5847 or email john.schuman@devrylaw.ca Listen to the Ontario Family Law Podcast!

“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.”