When you’re buying property with someone else in Ontario—your spouse, business partner, a family member, etc.—you’ll need to decide how you want to hold title. This is more than just a paperwork decision, it’s a decision that affects everything from your estate planning to your day-to-day property rights.
The two main options are joint tenancy and tenancy in common. We’ll break down what each one means and help you figure out which makes the most sense for your situation – the differences between them could end up saving or costing your family thousands of dollars down the road.
What is Joint Tenancy?
Joint tenancy is like being joined at the hip when it comes to property ownership. When you own property as joint tenants, you and your co-owner(s) each have an equal, undivided interest in the entire property.
Here’s the main feature: When one joint tenant dies, their share automatically goes to the surviving joint tenant(s). This is called the “right of survivorship,” and it happens regardless of what their will says.
For joint tenancy to exist in Ontario, four specific conditions must be met:
- Unity of Time – All joint tenants must acquire their interest at the same time
- Unity of Title – All joint tenants must acquire their interest through the same document (like the same deed)
- Unity of Interest – All joint tenants must have identical interests (same percentage, same type)
- Unity of Possession – All joint tenants have the right to use and occupy the entire property
If any ‘unity’ is broken, the joint tenancy is severed and becomes a tenancy in common – more on this soon.
A Real-World Example
Sarah and Scott buy a house in Newmarket as joint tenants. Each own an equal share of the property. If Mike passes away, Sarah automatically becomes the sole owner of the entire house, even if Mike’s will says he wants to leave his share to his brother. The house never goes through probate, and Sarah doesn’t need to do anything special to claim full ownership.
What is Tenancy in Common?
Tenancy in common is more like being business partners in property ownership. Each owner has a distinct, separate share of the property that they can control independently.
The major difference: When a tenant in common dies, their share goes to their estate according to their will, not automatically to the other owners.
Key Features of Tenancy in Common
- Unequal shares allowed – One person can own 70% while another owns 30%
- Independent control – Each owner can sell, mortgage, or gift their share without the other’s permission
- Estate planning flexibility – Your share passes according to your will
- Creditor exposure – If one owner has debts, creditors might be able to force a sale of their share
A Real-World Example
Janet and her brother Tom buy an investment property in Barrie as tenants in common, with Janet owning 60% and Tom owning 40%. When Tom dies, his 40% share goes to his daughter according to his will. Janet now owns the property as tenants in common with Tom’s daughter. There is no right of survivorship, Janet still owns 60% and Tom’s daughter now owns 40%.
A Quick Guide: Joint Tenancy vs. Tenancy in Common
| Feature | Joint Tenancy | Tenancy in Common |
| Right of Survivorship | Yes – automatic transfer | No – goes to the estate |
| Share Percentages | Must be equal | Can be unequal |
| Selling Your Share | More complicated – may sever joint tenancy | Can sell independently |
| Estate Planning | Limited – your will can’t control the property | Full control through your will |
| Probate | Avoids probate | Share goes through probate |
When Joint Tenancy Makes Sense
Joint tenancy works well in these situations:
For married couples or long-term partners who want the surviving spouse to automatically inherit the property without probate delays. This is especially common for primary residences in Mississauga, Toronto, and across the GTA.
When you want to avoid probate and ensure quick, automatic transfer to the survivor. Probate can take months and cost thousands in fees.
For simple ownership structures where both parties contribute equally and want equal rights.
Benefits of Joint Tenancy
- Immediate transfer upon death
- No probate required for the property
- Simple and straightforward for couples
Potential Drawbacks
- Limited estate planning – you can’t leave your share to anyone other than the joint tenant
- Unintended consequences if the relationship changes
- Tax complications can arise in some situations
When Tenancy in Common is the Better Choice
Tenancy in common often makes more sense for:
Business partners or investors who want to maintain control over their individual shares and estate planning.
Family members buying property together where contribution amounts differ, or where they want to pass their shares to their own children.
Second marriages where each spouse wants to ensure their share goes to their own children from previous relationships.
Investment properties where partners want flexibility to sell their shares independently.
Benefits of Tenancy in Common
- Estate planning control – your share goes where your will directs
- Unequal ownership reflects different contribution amounts
- Independent rights to sell, mortgage, or transfer your share
- Flexibility for complex family or business situations
Potential Challenges
- Probate required for the deceased’s share
- Partition rights – co-owners can potentially force a sale
- Mortgage complications if one owner wants to refinance
- Relationship disputes can be harder to resolve
Common Scenarios
Let’s look at some common situations you might relate to:
The Newmarket Couple
Glen and Lisa are buying their first home in Newmarket. They’re married, plan to stay together and want the survivor to automatically inherit. Joint tenancy makes perfect sense here.
The Barrie Investment Partners
Three friends are buying a rental property in Barrie. One contributes $100,000, another $75,000, and the third $50,000. They want their ownership to reflect their investment and be able to leave their shares to their families. Tenancy in common is the clear choice.
The Mississauga Family Purchase
A father and his adult daughter are buying a house in Mississauga together. Dad is putting up most of the down payment but wants his daughter to eventually inherit his other properties. They want his share of this house to follow his will. Tenancy in common gives them the flexibility they need.
Can I Switch Between Joint Tenancy to Tenancy in Common (Or Vice-Versa)?
Yes, but it’s not always straightforward.
Converting Joint Tenancy to Tenancy in Common (Severance)
Joint tenancy can be “severed” and converted to tenancy in common through:
- Mutual agreement – all parties agree to change
- Unilateral action – one party transfers their interest to themselves or a third party
- Partition proceedings – court-ordered division
- Bankruptcy of one joint tenant
Once severed, you can’t easily go back to joint tenancy.
Converting Tenancy in Common to Joint Tenancy
This requires all owners to agree and then execute new documentation that meets the four unity requirements. This one is more complex and less common.
Common Mistakes to Be Aware Of
Assuming Joint Tenancy is Always Better
Many people choose joint tenancy thinking it’s simpler, but it can create problems if:
- You want to leave your share to children from a previous marriage
- Your relationship with the co-owner changes
- You need to access your equity independently
Not Understanding Severance
Actions that seem innocent can accidentally sever a joint tenancy, such as:
- Adding someone to the mortgage
- Transferring your share (even to yourself)
- Certain types of liens or judgments
Ignoring Estate Planning Impact
Your choice ultimately impacts your entire estate plan. Whichever option you choose, make sure your real estate ownership aligns with your will and overall estate strategy.
Getting Professional Guidance
Real estate ownership decisions have long-lasting legal, financial and personal implications. What seems like a simple choice could end up significantly impacting your family’s future. Having proper guidance and unbiased, sound advice is the first step toward making the right decision.
Our experienced real estate lawyers in Newmarket, Barrie, Mississauga, Richmond Hill, and Oshawa regularly help clients navigate these decisions. We’ll review your specific situation, explain how each option affects your goals and ensure your ownership structure makes sense with your overall estate and financial planning.
Whether you’re buying your first home or adding an investment property to the mix, understanding the possible ownership structures will protect your interests and help prevent a costly mistake down the road.
You don’t have to make assumptions about property ownership. Contact us for a consultation to discuss which structure makes sense for your specific situation
So, what should you choose?
Ultimately, the choice between joint tenancy and tenancy in common is about protecting you, your investment and ensuring your property ownership makes sense with your life goals.
Choose joint tenancy if:
- You want automatic transfer to the survivor
- You’re comfortable with equal ownership
- Avoiding probate is a priority
- You have a stable, long-term relationship with your co-owner
Choose tenancy in common if:
- You want control over who inherits your share
- Ownership percentages should reflect different contributions
- You might want to sell your share independently
- You have complex family or business relationships
For full guidance on all aspects of your real estate transaction, including the ownership structure decisions discussed above, explore our real estate law services to see how we can protect your interests throughout the buying or selling process.
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