Ownership Share

What It Means

An ownership share is a co-owner's percentage ownership interest in a property, as defined by the Vesting structure and recorded on the Deed. Under Tenants in Common, ownership percentages can be unequal — for example, 60/40 or 50/30/20 — reflecting each party's financial contribution or other agreed-upon allocation. Under Joint Tenancy with Right of Survivorship, all co-owners must hold equal interests.

The ownership percentage is the authoritative measure of each co-owner's property interest. It determines Equity allocation at sale or Buyout, the distribution of sale proceeds, and — where defined by the Co-ownership Agreement — governance rights such as voting weight on major decisions.

Ownership Interest vs. Mortgage Liability

A co-owner's ownership percentage is legally distinct from their mortgage liability. All Co-borrowers who sign the Promissory Note assume Joint and Several Liability for the full loan amount — regardless of their ownership percentage. A co-owner who holds a 30% ownership interest is still personally liable for 100% of the mortgage if the other co-owners stop paying.

Similarly, ownership percentage may not equal ongoing payment contribution. The Co-ownership Agreement typically defines each co-owner's portion of Shared Expenses — which may or may not align with their ownership percentage, depending on the group's agreed cost-splitting arrangement.

How Ownership Percentage Is Determined

Ownership percentages are typically set at purchase, based on each co-owner's Capital Contributions — down payment, closing costs, and other upfront investment. However, the group may agree to an allocation that differs from raw contribution amounts, particularly when one co-owner contributes non-financial value such as renovation labor or property management.

Once recorded on the deed, the ownership percentage can only be changed by executing a new deed — which may trigger review under the Due on Sale Clause in the mortgage.

Key Points

• Each co-owner's percentage ownership interest in the property as recorded on the deed
• Determines equity allocation, sale proceeds distribution, and governance rights
• Legally distinct from mortgage liability — co-borrowers are liable for the full loan regardless of ownership percentage
• May not equal ongoing payment contributions, which are governed by the Co-ownership Agreement
• Typically based on capital contributions at purchase but can reflect other agreed factors
• Changing ownership percentage after closing requires a new deed and may trigger due on sale clause review