Common Law · Selling · Calgary

The Title Determines
the Outcome.

Common law couples selling property in Calgary face ownership and consent questions that can complicate the simplest transactions. When common law partners sell a home in Calgary, the proceeds, the signatures required, and the legal options available depend almost entirely on how the title was registered — not on the length of the relationship, the financial contributions made, or any informal understanding. Know where you stand before you list.

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The Essential Difference

Common Law Sellers — What the Law Actually Says

When a married couple sells their home, Alberta's Family Property Act and the Dower Act provide legal frameworks that protect both spouses regardless of whose name is on the title — both must consent to the sale, and both have presumptive rights to the proceeds. None of these protections apply to common law couples.

For common law partners, the legal position is simpler and more stark: the title determines everything. Who is registered on title, and in what proportion, determines who must sign the listing agreement, who is entitled to the proceeds, and who can legally prevent or compel a sale. Years of financial contribution, shared living, and mutual understanding do not override what is registered at the Land Titles Office.

This page explains exactly what each title structure means when you sell — and what your options are if the relationship has ended and the sale is complicated by disagreement, unequal contributions, or a partner who is not on title but believes they have a claim.

This page is general information only — not legal or tax advice. Always consult your family lawyer before listing or making any decisions about proceeds distribution. CalgaryListings Group works alongside your legal counsel.

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How Title Determines Everything

What Your Title Registration Means When You Sell

There are four common title situations we see with common law couples selling in Calgary. Each produces a completely different legal outcome. Find your situation below.

Both Partners on Title — Joint Tenancy (50/50)
Clearest Outcome
Both partners must sign the listing agreement and the purchase contract. Neither partner can list or sell without the other's signature — both are legally equal owners. Proceeds are split 50/50 after paying the mortgage, commission, legal fees, and other closing costs. If both partners agree to sell, this is the most straightforward common law sale. If one partner refuses to sign, the other can seek a court order for partition and sale.
Proceeds split: 50/50 — regardless of who contributed more to the down payment or mortgage, unless a cohabitation agreement specifies otherwise.
Both Partners on Title — Tenants in Common (Unequal Shares)
Follows Registered Percentages
Both partners must sign the listing agreement and purchase contract. Proceeds are divided according to the registered ownership percentages — e.g., if one partner owns 65% and the other 35%, that is how the net proceeds are divided. A cohabitation agreement may specify different arrangements (e.g., returning the initial down payment differential before splitting the remainder), in which case the cohabitation agreement governs. Your lawyers handle the distribution according to whatever framework is in place.
Proceeds split: According to registered percentages — or as directed by a cohabitation agreement if one exists and addresses proceeds distribution.
Only One Partner on Title — Cooperating Sale
Simple Legally, but Potentially Unfair
Only the on-title partner needs to sign the listing agreement and purchase contract. The off-title partner has no legal authority to prevent the sale, delay it, or claim proceeds — unless a cohabitation agreement grants them specific rights, or they successfully pursue a constructive trust claim through the courts. If the partners are cooperating and have agreed on a fair split between themselves, the distribution can be structured through the lawyers — but legally, the full proceeds belong to the on-title partner.
Proceeds split: 100% to the on-title partner legally — but partners can agree privately to distribute differently, with the on-title partner directing their lawyer to pay a portion to the other. A cohabitation agreement provides the most secure framework for this arrangement.
Only One Partner on Title — Relationship Has Ended, Off-Title Partner Disputes
Most Complex — Legal Advice Essential
The off-title partner believes they have a claim to the property based on their financial contributions — mortgage payments, renovations, maintenance — and is contesting the sale or the proceeds distribution. The on-title partner wants to sell and receive all proceeds. Without a cohabitation agreement, the off-title partner's only recourse is a constructive trust claim through the courts — arguing that despite not being on title, they have an equitable interest in the property based on their contributions. This is an expensive, time-consuming, and uncertain process. Both parties need independent family lawyers immediately.
Do not list until both parties have legal advice: Listing a property that is subject to an actual or threatened constructive trust claim without legal guidance can complicate the sale and the eventual distribution of proceeds. CalgaryListings Group coordinates with both parties' legal counsel before listing in any contested situation.
Side by Side

Common Law vs Married — The Key Differences When Selling

Understanding exactly how your situation differs from a married couple's is the fastest way to see what protections you have — and what you don't.

Issue
Married Couple
Common Law Couple
Non-title spouse/partner must consent to sale
Yes — Dower Act requires consent regardless of title
No — no dower rights; only registered owners must sign
Equal division of proceeds presumed
Yes — Family Property Act presumption of equal division
No — proceeds follow registered ownership percentages exactly
Court can override title to ensure fairness
Yes — courts can adjust division under Family Property Act
Only via constructive trust — difficult, costly, uncertain
Both parties must sign listing agreement
Yes — dower consent required even if not on title
Only if on title — off-title partner has no signing authority
Off-title partner can block the sale
Yes — by withholding dower consent
No — unless court order or cohabitation agreement prevents it
Cohabitation/prenuptial agreement can customize outcome
Yes
Yes — and is far more important for common law couples
Principal Residence Exemption treatment
One property per family unit per year
Same — one property per family unit per year for 12+ month couples
Tax Treatment

Capital Gains and the Principal Residence Exemption for Common Law Sellers

The Principal Residence Exemption — One Property Per Family Unit

Common law couples who have lived together for at least 12 months (or who share a child) are treated as a family unit for the Principal Residence Exemption (PRE). This means only one property can be designated as the principal residence per family unit per year — even if each partner technically owns a separate property.

For most common law couples selling their shared home: If the home was your shared principal residence for all years you owned it together, the full PRE should eliminate capital gains tax on the gain. The PRE is claimed on the seller's personal tax return. If tenants in common, each partner claims their proportionate share of the exemption against their proportionate share of the gain.

If either partner owns another property: If one partner also owns an investment property or another residence, you cannot claim the PRE on both properties for the same year. You and your partner need to coordinate which property each year's PRE is applied to — this requires careful planning with your accountant, particularly if you have owned multiple properties during the relationship.

If only one partner is on title: The PRE is claimed by the on-title partner on their tax return. If they receive the full proceeds and claim the full PRE, there is generally no capital gains tax on the sale of a principal residence. However, the off-title partner who received a portion of the proceeds through a private arrangement should also consider the tax implications of that receipt with their accountant.

Always speak with your accountant before selling. The PRE calculation can be complex, particularly in situations with multiple properties, unequal ownership, or a relationship breakdown mid-ownership.

The Hardest Situation

When the Off-Title Partner Contributed — What Are Their Options?

One of the most painful situations we encounter: a common law relationship ends, the on-title partner wants to sell and receive all proceeds, and the off-title partner — who contributed significantly to the mortgage, renovations, and expenses — believes they have a claim. Here is what the law says and what the options are.

⚠ The Legal Reality for the Off-Title Partner

In Alberta, an off-title partner in a common law relationship has no automatic ownership claim to a property they are not registered on — regardless of how much they contributed financially. There is no equivalent of the Family Property Act for common law couples. The courts have recognized that this can produce unfair outcomes, which is why constructive trust principles exist — but accessing them requires litigation.

A constructive trust claim requires the off-title partner to prove to the court that: (1) they contributed financially to the property (mortgage payments, renovations, down payment assistance), (2) the on-title partner was unjustly enriched by those contributions, and (3) there is a direct link between the contributions and the property's value. If successful, the court can award the off-title partner an interest in the property or a monetary payment equivalent to their contribution.

The practical reality: Constructive trust litigation is expensive (typically $15,000–$50,000+ in legal fees), time-consuming (often 1–3 years), and uncertain in outcome. The best protection is always a cohabitation agreement signed before or shortly after moving in together — not a lawsuit after the relationship ends.

If you are the off-title partner in this situation, speak with a family lawyer before the on-title partner lists the property. A court injunction can temporarily prevent a sale while a constructive trust claim is being established. Once the property is sold and proceeds distributed, recovering them becomes significantly more difficult.

CalgaryListings Group's position: In any situation where a constructive trust claim is being threatened or pursued, we will not list the property until both parties have had the opportunity to obtain legal advice and the legal situation is clarified. We coordinate with both parties' lawyers before proceeding. Selling a property into litigation without proper legal guidance is not a situation we participate in.
Our Role

How CalgaryListings Group Helps Common Law Couples Sell

📊

Independent Market Valuation

We provide a detailed, documented Comparative Market Analysis establishing fair market value — the objective starting point for both a cooperative sale and any buyout negotiation between partners. If one partner wants to buy the other out, our valuation establishes what fair market value is, which the purchasing partner must pay.

⚖️

Legal Clarity Before Listing

We confirm who has signing authority, what documentation is required, and whether any legal complications (contested claims, court orders) need to be resolved before we proceed. We do not list properties into contested legal situations without guidance from both parties' legal counsel.

🤝

Neutral Representation

When both partners are on title and the relationship has ended, we represent the sale — not either partner individually. Both parties receive the same information. We do not take sides or advocate for one partner's preferred outcome. Our role is to maximize the net proceeds available for distribution — getting the best result from the Calgary MLS® so there is more for both partners to move forward with.

👨‍💼

Lawyer Coordination

We work directly with your family lawyer throughout — confirming the legal framework for proceeds distribution, ensuring the purchase contract is structured correctly, and providing documentation needed for the legal closing. When both partners have separate legal counsel, we coordinate with both.

🏦

Mortgage Broker Coordination

If one partner is buying the other out rather than selling, Calgary mortgage broker Al Zayat confirms the buying partner's ability to refinance in their own name — a requirement before any buyout can complete. We coordinate the timing of the valuation, the buyout negotiation, and the mortgage application to keep the process moving efficiently.

🔒

Complete Confidentiality

Everything discussed in our conversations with either partner remains confidential from the other. Buyers and other parties are never told the reason for the sale. Your personal and financial circumstances are never shared beyond what is necessary to complete the transaction.

Common Questions

Selling as a Common Law Couple in Calgary — FAQ

How are the proceeds divided when common law partners sell a home?+
Proceeds are divided according to registered ownership on title. Joint tenancy means 50/50. Tenants in common follows the registered percentages (e.g., 60/40). If only one partner is on title, they are legally entitled to all proceeds — the other has no automatic claim. A cohabitation agreement can modify these outcomes. Unlike married couples, there is no Family Property Act presumption of equal division for common law partners — the title is the legal record that governs distribution.
Do both of us need to sign to sell the home?+
Only registered owners must sign. If both partners are on title, both must sign the listing agreement and purchase contract. If only one partner is on title, only that partner needs to sign — unlike a married couple, the off-title common law partner has no dower rights requiring their consent. This is one of the most significant differences between common law and married couples in Alberta. If only one partner is on title and the relationship has ended, the on-title partner can proceed to list without the other's agreement — though they should confirm with their lawyer whether any legal proceedings have been filed that might affect the sale.
Do common law partners have dower rights in Alberta?+
No — dower rights under Alberta's Dower Act apply only to legally married spouses. A married spouse not on title can block a sale by withholding dower consent; a common law partner cannot. This means a common law on-title partner can list and sell the property without their partner's consent — unless a court order or cohabitation agreement specifically prevents it. If you are a common law partner worried about your home being sold without your knowledge, speak with a family lawyer immediately about whether an injunction or caveat on title is appropriate.
I'm not on the title but I contributed to the mortgage for years — do I have any claim?+
Potentially — but it requires pursuing a constructive trust claim through the courts, which is expensive, time-consuming, and uncertain. To succeed, you would need to demonstrate that you contributed financially to the property, that the on-title partner was unjustly enriched, and that there is a direct link between your contributions and the property. If the property hasn't sold yet, a caveat or injunction may temporarily protect your position while the claim is established. Speak with a family lawyer immediately — the earlier you act, the more options you have. CalgaryListings Group will not list a property we know is subject to an actively contested claim without both parties' legal counsel being involved.
What if we can't agree on whether to sell or at what price?+
If both partners are on title and cannot agree on selling, either partner can apply to the Court of King's Bench for a partition order — compelling the sale of the property and division of proceeds according to registered ownership percentages. Our independent Comparative Market Analysis often serves as the objective basis for resolving price disagreements without court involvement. If only one partner is on title and the relationship has ended, that partner can sell without the other's agreement — but should confirm with their lawyer that no legal proceedings have been filed that might restrict their ability to do so.
What is the capital gains tax treatment when common law partners sell their home?+
Common law couples living together for 12+ months are treated as a family unit for the Principal Residence Exemption (PRE). If the home was your shared principal residence for all years of ownership, the PRE should eliminate capital gains tax on the gain entirely. If you have multiple properties between you, you cannot claim the PRE on both in the same year — coordinate with your accountant on which property to designate each year. Each partner claims their proportionate share of the exemption against their proportionate share of the gain if holding as tenants in common. Always speak with your accountant before the sale closes.
Can one partner buy the other out instead of selling?+
Yes — one partner can buy out the other's registered share. This requires an agreed fair market value, financing approval for the buying partner in their own name (refinancing the existing mortgage), and a legal transfer of title removing the selling partner. CalgaryListings Group provides the independent market valuation establishing fair market value. Calgary mortgage broker Al Zayat confirms the buying partner's financing options. The legal transfer is handled by both parties' lawyers. The selling partner's share of the mortgage is discharged as part of the buyout, and the buying partner takes on the full mortgage going forward.
How is this different from selling during a divorce?+
The key differences: married couples have dower rights (both spouses must consent to the sale regardless of title), the Family Property Act presumption of equal division (courts can override title to ensure fairness), and Matrimonial Property Act protections for the matrimonial home. Common law couples have none of these automatic protections — the outcome is determined by what is on title, what is in any cohabitation agreement, and whether any constructive trust claims have been established. For married couples separating, see our selling during divorce guide. For common law couples, title structure and cohabitation agreements are the equivalent protection.
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Free Resource

The Calgary Common Law Seller's Guide

How title determines proceeds for common law couples. Common law vs married — a side-by-side comparison. What the off-title partner can do. Capital gains and the PRE for common law sellers. Buyout vs sale — how to decide. What to do when partners disagree. Coordinating with your family lawyer throughout.

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Related Resources
Common Law Buying Calgary Selling After Divorce Selling During Divorce Calgary Mortgage Broker Sell Your Calgary Home
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