Humber/Ontario Real Estate Course 4 Exam Practice

When buying a cottage through co-ownership, what is crucial regarding family members on title?

1. Everyone's name must be on the title without any exception.

2. Names must be registered based on individual property interest.

3. Only one name can appear on the title.

4. The title should include names of both immediate and extended family members.

The correct answer is: Names must be registered based on individual property interest.

When purchasing a cottage through co-ownership, it is vital to register the names based on individual property interest. This ensures that each co-owner has a clearly defined stake in the property, which can be proportionate to their financial contribution or agreed-upon share of ownership. This clarity is essential for avoiding disputes among co-owners in the future regarding rights, responsibilities, and the division of income or expenses associated with the property. Having specific registrations reflects the reality of how the property is actually owned. It helps facilitate decision-making processes related to the property, as well as providing a more straightforward method for handling sales or transfers of interests when individuals choose to exit the co-ownership arrangement. This approach supports a transparent and legal acknowledgment of ownership rights and ties directly into the principles of property law, which prioritizes clear and enforced recorded interests in real estate transactions. In contrast, having all family member names without consideration of individual property interest could lead to conflicts and misunderstandings about ownership percentages, use rights, and financial responsibilities.