Rajesh and David purchased an investment property in Calgary as tenants in common. Rajesh contributed 60% of the purchase price, and David contributed 40%. If the property is sold and there are no other agreements, how will the proceeds be distributed?

Question: Rajesh and David purchased an investment property in Calgary as tenants in common. Rajesh contributed 60% of the purchase price, and David contributed 40%. If the property is sold and there are no other agreements, how will the proceeds be distributed?

Answer options:

• Equally, 50% to Rajesh and 50% to David. ✅ Rajesh receives 60% and David receives 40% of the proceeds.
• The proceeds will be distributed based on their respective contributions to the initial equity, after accounting for any outstanding mortgage.
• The distribution will be determined by a court based on individual use of the property.

Correct answer: Rajesh receives 60% and David receives 40% of the proceeds.

Explanation: With tenancy in common, each owner holds a distinct and separate share of the property, which can be unequal, and there is no right of survivorship. Proceeds are distributed according to these proportional shares.