Understanding Property Ownership: Joint Tenants vs Tenants in Common

When two or more persons buy property together, one of the first decisions they have to make is how they would like to hold the title to the property. In Canada, the two most common forms, joint tenancy and tenancy in common, involve shared ownership, but with very different legal consequences for inheritance, estate planning, and rights of sale.

What is Joint Tenancy?

When property is held in joint tenancy, co-owners have identical shares of interest, rights of  possession, and the same duration of interest in the property.

What is Tenancy in Common?

Tenancy in common allows each co-owner to hold a distinct, separate share of the property. Each person’s interest is independent from the other co-owner(s), which means their portion remains their own to sell, transfer, or pass through their estate.

How to Choose Between Joint Tenancy and Tenancy in Common?

The choice between joint tenancy and tenancy in common depends on one’s personal, financial, and estate planning goals. 

If you want ownership to pass automatically to the surviving owner, joint tenancy may be the right option. If you want to leave your share of the property to someone else through your estate, tenancy in common may be  better suited. Because this decision has long-term legal and financial consequences, it is recommended that you discuss your circumstances and goals with a lawyer before finalizing ownership.