Title Matters: Joint Tenancy vs. Tenants in Common: What’s the Difference and Which Is Right for You?

When you're purchasing a property with another person—whether it's a spouse, family member, or friend—one of the important legal decisions you'll need to make is how to take title to the property. In Canada, the two most common forms of joint ownership are Joint Tenancy and Tenants in Common. Each comes with its own legal and estate planning implications and understanding the difference can help you make an informed choice that suits your personal and financial goals.

What is Joint Tenancy?

Joint Tenancy means that two or more people own the property equally and together as a single unit. All owners have equal rights to the entire property, regardless of how much each person contributed financially.

The key feature of joint tenancy is the right of survivorship. This means that if one owner passes away, their share automatically transfers to the surviving owner(s), outside of the deceased’s estate or will. This is common for married couples who want the property to pass seamlessly to the other.

What is Tenants in Common?

Tenants in Common allows two or more people to own property in equal or unequal shares. Each person’s interest is treated as separate and distinct. There is no right of survivorship under this form of ownership. If one owner dies, their share becomes part of their estate and is distributed according to their will (or intestacy laws, if no will exists).

Which One Should You Choose?

The right option depends on your relationship with the co-owner and your estate planning goals. For example:

• Married or long-term partners often choose joint tenancy for simplicity and survivorship benefits.

• Siblings or friends buying together, or investors, may prefer tenants in common to reflect individual contributions and allow independent estate planning.

Before making a decision, it’s important to speak with a real estate lawyer who can explain the implications based on your specific circumstances. Once title is registered, changing it can involve extra steps and costs—so it’s best to get it right from the beginning.