What is the difference between joint tenancy and tenants in common?

Joint tenancy means all owners hold equal, undivided shares with a right of survivorship — when one owner dies, their share automatically transfers to the surviving owner(s). Tenants in common means each owner holds a specific share (which can be unequal) and can sell or will their share independently — there is no automatic survivorship.

Which is better for married couples: joint tenancy or tenants in common?

Joint tenancy is most common for married couples because the right of survivorship means the property automatically transfers to the surviving spouse without going through probate. This is simpler, faster, and avoids estate administration fees on the property.

Can I change from joint tenancy to tenants in common?

Yes. This is called severing the joint tenancy. It can be done unilaterally (by one owner without the others consent) in most provinces by filing a notice with the land registry. This is sometimes done for estate planning reasons or when a relationship is ending.

What happens to property in tenants in common when one owner dies?

The deceased owners share passes through their estate to the beneficiaries named in their will (or according to intestacy laws if there is no will). The share does not automatically go to the other co-owner. This means the property goes through probate, and the estate pays any applicable probate fees.

Can tenants in common own unequal shares?

Yes. Tenants in common can own any percentage split — 50/50, 60/40, 70/30, or any other ratio. Joint tenants must own equal shares. This makes tenants in common better for partners with unequal financial contributions.

Joint Tenancy vs Tenants in Common in Canada: Which to Choose

When two or more people buy property together in Canada, the title must be held as either joint tenancy or tenants in common. This choice affects what happens when one owner dies, separates, or wants to sell their share. The wrong choice can create unintended tax consequences, estate complications, or leave a partner unprotected.

Quick comparison

Feature	Joint Tenancy	Tenants in Common
Ownership shares	Equal (always)	Any split (50/50, 60/40, etc.)
Right of survivorship	Yes — share goes to surviving owner automatically	No — share goes through the deceased’s estate
Probate required on death	No	Yes (for the deceased’s share)
Can sell your share independently	No (must sever first)	Yes
Can will your share to someone	No (survivorship overrides the will)	Yes
Best for	Spouses and committed partners	Business partners, friends, unequal contributors, estate planning

How joint tenancy works

All owners hold an equal, undivided interest in the entire property. The “four unities” must be present:

Unity	Meaning
Time	All owners acquired their interest at the same time
Title	All owners received title through the same document
Interest	All owners hold equal shares
Possession	All owners have equal right to possess the entire property

On death

The deceased owner’s share automatically transfers to the surviving owner(s). This is called the right of survivorship.

Step	What Happens
Owner dies	Share automatically vests in surviving owner(s)
Probate	Not required for the property
Will	Does not affect the property (survivorship overrides the will)
Estate fees	No probate fees on the property
Registration	File a survivorship application with the land registry to update title

Advantages of joint tenancy

Advantage	Details
Simplicity on death	Automatic transfer with minimal paperwork
Avoids probate	Saves time and probate fees (up to 1.5% in Ontario)
Creditor protection (partial)	While alive, one owner’s creditors may still claim against their interest
Equal ownership	Simple for couples who share everything

Disadvantages of joint tenancy

Disadvantage	Details
Cannot leave your share to someone else	Even if your will says otherwise, survivorship applies
Must be equal shares	Cannot reflect unequal contributions
Can be severed unilaterally	One owner can sever without the other’s consent
Potential tax complications on death	Deemed disposition of the deceased’s share may trigger capital gains (for non-principal-residence properties)

How tenants in common works

Each owner holds a specific share of the property. Shares can be equal or unequal, and each owner can deal with their share independently.

On death

The deceased owner’s share does not transfer to the other owner — it goes to the deceased’s estate and is distributed according to their will.

Step	What Happens
Owner dies	Share becomes part of the estate
Probate	Required (for the property share)
Will	Determines who inherits the share
Estate fees	Probate fees apply to the value of the share
New co-owner	The beneficiary becomes a tenant in common with the surviving owner(s)

Advantages of tenants in common

Advantage	Details
Unequal shares possible	Reflects different financial contributions
Can will your share	Leave to children, other family, etc.
Estate planning flexibility	Works with trusts and estate strategies
No unintended survivorship	You control who gets your share

Disadvantages of tenants in common

Disadvantage	Details
No right of survivorship	Surviving owner does not automatically inherit
Probate required	Estate fees and delays on death
Partition risk	One owner can force a sale through court
Complexity	Requires clear documentation of shares and responsibilities

Which to choose by situation

Situation	Recommended	Why
Married couple, first home	Joint tenancy	Automatic survivorship, simple, consistent with matrimonial law
Common-law couple, equal contributions	Joint tenancy or 50/50 tenants in common with cohabitation agreement	Either works; tenants in common adds estate flexibility
Common-law couple, unequal contributions	Tenants in common (proportional)	Reflects actual contributions; add a cohabitation agreement
Parent and adult child	Tenants in common	Parent may want their share to go to other children on death
Friends or siblings buying together	Tenants in common	Each controls their share; add a co-ownership agreement
Business/investment partners	Tenants in common	Flexibility to sell or transfer individual shares
Estate planning (avoiding probate for spouse)	Joint tenancy	Survivorship bypasses probate
Estate planning (distributing to multiple heirs)	Tenants in common	Share goes to estate for distribution per the will

Tax implications

Principal residence

Scenario	Tax Impact
Joint tenancy, one owner dies	No capital gains tax (principal residence exemption applies)
Tenants in common, one owner dies	No capital gains tax if it was the deceased’s principal residence
Either, property is investment/rental	Deemed disposition on death — capital gains tax on the deceased’s share

Adding someone to title

Action	Tax Implication
Adding spouse to title	Generally no immediate tax consequence (spousal rollover)
Adding adult child to title	May trigger a deemed disposition of 50% of the property — potential capital gains tax
Adding anyone to investment property	Deemed disposition at fair market value — likely capital gains tax

Warning: Adding a child to the title of your home for “estate planning” can have unintended tax, creditor, and family law consequences. Consult a tax accountant and estate lawyer.

Severing a joint tenancy

Any joint tenant can sever the joint tenancy unilaterally — converting it to tenants in common.

Province	How to Sever
Ontario	File a notice to sever at the land registry office
BC	Register a separation certificate at the Land Title Office
Alberta	Register a transfer to yourself as tenant in common at Land Titles
Other provinces	File appropriate documentation at the land registry

Reasons to sever

Reason	Details
Separation/divorce	Convert to tenants in common to divide the property
Estate planning	Want your share to go to children rather than your co-owner
Creditor issues	Protecting the other owner’s share from your creditors (limited effectiveness)
Changing financial contributions	One owner starts paying more or less

Protecting yourself with a co-ownership agreement

Regardless of title type, a co-ownership agreement addresses:

Topic	What to Include
Ownership percentages	Who owns what
Financial contributions	Down payment, mortgage payments, taxes, insurance, maintenance
Decision-making	How renovation and major repair decisions are made
Selling	Process for selling, right of first refusal, how proceeds are split
Dispute resolution	Mediation before court
What happens on separation	Buyout process, timeline, valuation method
Death	Complements the will; clarifies intent

Joint Tenancy vs Tenants in Common in Canada: Which to Choose

Quick comparison

How joint tenancy works

On death

Advantages of joint tenancy

Disadvantages of joint tenancy

How tenants in common works

On death

Advantages of tenants in common

Disadvantages of tenants in common

Which to choose by situation

Tax implications

Principal residence

Adding someone to title

Severing a joint tenancy

Reasons to sever

Protecting yourself with a co-ownership agreement

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