Understanding the key differences, tax implications, and estate planning consequences of how you co-own property in Canada.
When two or more people own property together in Canada, they hold it either as joint tenants or as tenants in common. The distinction has major implications for what happens when one owner dies — and for tax planning, estate planning, and family law purposes.
| Feature | Joint Tenancy | Tenants in Common |
|---|---|---|
| Right of survivorship | Yes — surviving owner inherits automatically | No — deceased's share goes to their estate |
| Ownership shares | Equal shares only | Any proportion (e.g., 600/400) |
| Will required to transfer? | No — bypasses will entirely | Yes — passes through will or intestacy |
| Probate applies? | No | Yes (deceased's share) |
| Can sell/transfer own share? | Severs joint tenancy; becomes TIC | Yes, independently |
| Common use | Spouses/partners on matrimonial home | Business partners, unequal co-owners, adult children |
In a joint tenancy, each owner holds an equal undivided interest in the whole property. The defining feature is the right of survivorship: when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) — outside the estate, bypassing probate entirely.
For example: spouses who own their home as joint tenants — when one dies, the surviving spouse becomes the sole owner automatically, without going through probate or even needing a will provision. The title transfer requires only a death certificate and an application to the land registry.
Traditionally, a valid joint tenancy requires four "unities": time (acquired at the same time), title (by the same instrument), interest (equal shares), and possession (equal right to possess the whole). In modern practice, these can often be created by a single deed or transfer.
Tenants in common own separate, defined shares of a property. Those shares can be equal or unequal (e.g., 700/300, 600/400). There is no right of survivorship — when one tenant in common dies, their share passes according to their will (or intestacy rules if no will).
This structure is common among: business partners co-owning commercial property, friends buying a cottage together, parents and adult children, and situations where unequal contributions justify unequal shares.
Because joint tenancy property passes by survivorship and bypasses probate, it is widely used by spouses to avoid probate fees on the family home. In Ontario, where probate fees run ~1.5% over $500K, this can save thousands of dollars on a $80000,000000 home.
Some parents add an adult child to their home's title as a joint tenant to avoid probate. This strategy has serious risks:
Tenants in common is often the preferred structure for blended family situations. For example: two spouses each own 500% as tenants in common. Each can direct their share through their will — ensuring their portion goes to their own children, not automatically to the surviving spouse (and potentially the spouse's children from a prior relationship).
A joint tenancy can be converted to a tenancy in common (called "severance") by:
After severance, the right of survivorship is destroyed — the severed share becomes a tenancy in common and will pass through the owner's estate on death.
| Situation | Recommended Structure |
|---|---|
| Spouses owning matrimonial home | Joint tenancy (probate avoidance, simplicity) |
| Blended family — protecting children's inheritance | Tenants in common (each directs their share) |
| Business partners co-owning property | Tenants in common (can specify proportionate shares) |
| Friends buying a cottage | Tenants in common (with a co-ownership agreement) |
| Parent and adult child | Depends — get legal advice first |
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Get KOHO Free — Use Code 45ET55JSYANot exactly. Joint ownership is a general term for any co-ownership. Joint tenancy is a specific legal form with the right of survivorship. Two people can jointly own property as either joint tenants or tenants in common.
Check your property deed or land title certificate — it will specify the form of ownership. If it doesn't specify, the default in most provinces is tenants in common (though this varies).
Yes. Bank accounts and investment accounts can be held jointly. Joint account holders typically have right of survivorship, similar to joint tenancy for real estate. Check with your financial institution for their specific rules.
Related guides: Probate in Canada | Estate Planning | Gifting Before Death