When you buy real estate in Ontario with another person—whether a spouse, family member, friend, or business partner—you must decide how you want to take title to the property. This choice affects what happens to your ownership share during your lifetime and after you pass away.

The two most common forms of co‑ownership are Joint Tenancy and Tenancy in Common. Although they sound similar, they carry very different legal consequences.

What Does “Taking Title” Mean?

“Title” refers to legal ownership of a property. When more than one person buys a property, the law requires you to specify how you will share that ownership.

Joint Tenancy

Key Feature: The Right of Survivorship

The most important characteristic of joint tenancy is the right of survivorship. This means:

• If one owner dies,
• Their share of the property automatically transfers to the surviving owner(s),
• Without going through the estate or the will.

When Joint Tenancy Is Common

Joint tenancy is typically used by:

• Married or common‑law couples
• Parents and adult children
• People who want the property to pass automatically to the other owner upon death

Equal Ownership in Joint Tenancy

Joint tenants must own the property equally. If there are two owners, each owns 50%. If there are three owners, each owns one‑third.

Pros of Joint Tenancy

• Avoids probate fees because the property does not pass through the estate
• Simple transfer to the surviving owner
• Useful for couples who want the home to stay with the surviving partner

Potential Drawbacks of Joint Tenancy

• You cannot leave your share to someone else in your will
• If the relationship breaks down, the right of survivorship may become problematic
• Creditors of one joint tenant may still affect the property

Tenants in Common

Key Feature: No Right of Survivorship

With tenancy in common:

• Each owner holds a separate, distinct share of the property
• If one owner dies, their share does not automatically go to the other owner
• Instead, their share becomes part of their estate and is distributed according to their will or Ontario’s intestacy laws (if there is no will)

Flexible Ownership Shares in Tenancy in Common

Unlike joint tenancy, shares do not have to be equal. For example:

• One owner can hold 60%
• Another can hold 40%
• Or any other percentage split

When Tenancy in Common Is Common

This form of ownership is often used by:

• Friends buying a property together
• Siblings who inherit property
• Investors purchasing real estate jointly
• People who want their share to pass to someone other than the co‑owner of the property

Pros of Tenancy in Common

• Flexibility in ownership percentages
• Ability to leave your share to anyone you choose
• Useful for investment or non‑spousal ownership arrangements

Potential Drawbacks in Tenancy in Common

• Your share may go through probate upon your death. In other words, your portion of the property may have to be processed through the court system after you pass away before it can legally be transferred to your heirs
• Co‑owners may have different goals for the property
• A co‑owner’s creditors may still place claims against their share of the property

Can You Change Your Ownership Type Later?

Yes. Owners can “sever” a joint tenancy and convert it into a tenancy in common. This can happen intentionally (by signing the proper documents) or unintentionally (through certain legal actions).

To convert tenants in common into joint tenants, the owners must:

• Agree to hold the property jointly,
• Meet the legal requirements for joint tenancy (the “four unities”: time, title, interest, and possession), and
• Sign the appropriate transfer documents to create the joint tenancy.

In short:

• Joint tenancy → tenancy in common
  • Can happen intentionally or unintentionally.

• Tenancy in common → joint tenancy
  • Can only happen intentionally, with all owners’ consent.

However, changing ownership structure has legal and estate‑planning consequences, so it’s important to get legal advice before making any changes.

Which Option Is Right for You?

There is no one‑size‑fits‑all answer. The right choice depends on:

• Your relationship with the co‑owner
• Your estate‑planning goals
• Whether you want your share to pass automatically to the other owner
• Whether you need flexibility in ownership percentages
• Your long‑term intentions for the property

Our real estate lawyers at Rabideau Law can help you understand how each ownership option applies to your specific circumstances and ensure you choose the structure that best protects your interests.

Choosing between joint tenancy and tenancy in common is more than a simple checkbox on a form—it’s a decision with real legal and financial consequences. Understanding the differences ensures that your ownership structure aligns with your goals, both now and in the future.

Our real estate lawyers at Rabideau Law can help you understand how each ownership option applies to your specific circumstances and ensure you choose the structure that best protects your interests.