GP and LP partnerships in real estate
Most multiplex projects are built with more than one person's money. These guides explain how general and limited partners share the risk and the return.
Start here
Capital
How a GP/LP Structure Works for a Toronto Multiplex Deal
Most GP/LP explainers are written for apartment syndications. A Toronto multiplex deal is a $200,000 to $800,000 equity gap on a single property, and that changes what the GP can put in, what split the LP will accept, and how the deal gets papered.
August 7, 2026
Land
How to attract investors to your property development project
July 10, 2026
Common questions
What's the difference between a GP and an LP in a Canadian real estate deal?
The general partner (GP) runs the deal and carries unlimited personal liability for the limited partnership's debts; limited partners (LPs) contribute capital and cap their liability at what they invested, as long as they stay out of controlling the business (Limited Partnerships Act, R.S.O. 1990, c. L.16, s. 13).
From: How GP/LP Partnerships Work in Canadian Real Estate Investing
How many units can you build as-of-right on a Toronto residential lot?
Up to four units (duplex, triplex, or fourplex) in most residential zones citywide. Five or six units, the 'houseplex,' are as-of-right only in the former Toronto and East York district and in Ward 23, under By-law 654-2025.
From: How a GP/LP Structure Works for a Toronto Multiplex Deal
Can a limited partner lose their liability protection in an Ontario LP?
Yes. Under section 13 of Ontario's Limited Partnerships Act, a limited partner who takes part in controlling the partnership's business becomes liable as a general partner would, losing the cap on their exposure.
From: How GP/LP Partnerships Work in Canadian Real Estate Investing
Do Toronto multiplexes still pay development charges?
The second through sixth unit in a development of up to six units carries a $0 development charge under a 2025 Toronto Municipal Code amendment. Council later removed the amendment's original sunset clause, so the exemption is now permanent rather than time-limited.
From: How a GP/LP Structure Works for a Toronto Multiplex Deal
How much does it cost to register a limited partnership in Ontario?
The Ontario government filing fee for a Declaration of Limited Partnership is $210 online or by mail, rising to $360 for a late renewal. Declarations are commonly renewed every five years to stay active.
From: How GP/LP Partnerships Work in Canadian Real Estate Investing
What loan-to-cost can a Toronto multiplex get with CMHC MLI Select?
Up to 95% loan-to-cost on new construction, available already from MLI Select's entry tier of 50 points, with a minimum project size of five units. That ceiling does not rise at higher point tiers. What improves with more points is the amortization period, up to 50 years at 100 points, and a shift to limited-recourse financing at 100 points. Confirm the live table with a lender before modelling a deal.
From: How a GP/LP Structure Works for a Toronto Multiplex Deal
Two ways to work with TESA on a deal
Syndicate Build is for investing as a Limited Partner, with TESA as the General Partner. GP Support is for leading your own syndication with TESA behind you.
Other topics
Zoning and what you can build
Toronto allows up to four homes on most residential lots, and up to six in nine wards. These guides set out what is as-of-right and how to check a specific lot.
4 guides
Garden and laneway suites
A second building at the back of the lot is often the simplest way to add a home. These guides cover which lots qualify and what a suite costs to build.
3 guides
Severance and approvals
Splitting a lot or asking for a variance means an application to the Committee of Adjustment. These guides explain the legal tests and what happens at the hearing.
2 guides
Feasibility and site analysis
Before any drawings, two questions decide a project: what can be built here, and does it pay. These guides show how to test a lot and a deal before you commit money.
5 guides
Construction costs and steel framing
Hard costs and the framing system decide most of a multiplex budget. These guides break down the numbers and explain light steel framing.
5 guides
Financing and CMHC
How a project is financed decides how much equity it needs. These guides explain CMHC's MLI Select and construction financing.
5 guides
Learning and house hacking
Some owners start by living in one unit and renting out the rest. Others want the full discipline first. These guides cover both routes.
5 guides