Two people who own a property together hold it either as joint tenants or as tenants in common, and the choice decides what happens when one of them dies. With joint tenancy, the survivor automatically owns the whole property, outside the will and the estate. With tenancy in common, each owner’s share passes under their own will. This page compares the two and covers the common situations where the choice matters. It is part of our estate planning guide.
Joint tenancy vs tenants in common: key differences
| Feature | Joint tenancy | Tenants in common |
|---|---|---|
| Right of survivorship | Yes: the survivor owns the whole property | No: each share goes through the owner’s estate |
| Shares | Equal | Can be unequal (40/60, 25/75 and so on) |
| Governed by the will? | No: survivorship overrides the will | Yes |
| Probate on the first death | Not on the property | Yes, on the deceased’s share |
| Can one owner end the arrangement? | Yes, by severing it | Each already owns a separate share |
| Typical owners | Spouses | Unmarried partners with unequal contributions, business partners, siblings, second marriages |
Probate and the two structures
Because a joint tenant’s interest passes by survivorship, the property isn’t counted in their estate for probate. A tenant in common’s share is, so its value adds to the probate fee in their province. Joint tenancy only delays probate, though: when the last joint owner dies, the property goes through their estate. The fees in each province, with worked amounts, are in probate fees by province.
Example (Ontario): a sole owner’s $800,000 home passing through the estate would add $11,250 in Estate Administration Tax, if it were the whole estate; held in joint tenancy with a spouse, it passes to the spouse outside the estate.
Adding an adult child to the title
Some parents add an adult child to a home’s title as a joint tenant so it passes outside probate. The risks:
| Risk | What can happen |
|---|---|
| Tax | Transferring part of a property is a disposition, so a gain can be taxed now on any part that isn’t sheltered by the principal residence exemption, and the child’s share may not qualify for the exemption later |
| Land transfer tax | Some provinces charge land transfer tax on the transfer |
| The child’s creditors | They can claim against the child’s interest |
| The child’s separation | The interest can become part of a family property claim |
| Selling or refinancing | The child’s signature is needed |
| The estate’s claim | Where a parent adds an adult child without making a gift, the law can presume the child holds the share in trust for the estate, so the parent’s intention needs to be written down |
That last point comes from the Supreme Court of Canada’s Pecore decision, which also applies to joint bank accounts; see joint accounts after a death. Other ways to pass property outside the estate are compared in the beneficiary designation guide.
Changing from tenants in common to joint tenancy
Spouses who bought as tenants in common sometimes convert to joint tenancy for the survivorship. It takes a transfer registered at the provincial land registry, usually through a real estate lawyer, and the property insurance should reflect the new ownership. Transfers between spouses can generally be made without triggering a capital gain.
Which structure fits which situation
| Situation | Structure often used |
|---|---|
| A married couple buying a home | Joint tenancy, for the automatic transfer |
| Unmarried partners with unequal contributions | Tenancy in common, with the split recorded |
| A parent and adult child buying together | Tenancy in common, so the parent’s share stays in the parent’s estate |
| Business partners buying an investment property | Tenancy in common |
| Siblings inheriting a cottage | Tenancy in common, so each sibling plans their own share (see cottage succession planning) |
| A second marriage with children from the first | Tenancy in common, so a share can go to the first family’s children |
Tax at death
In both structures, the deceased is treated as having sold their interest at fair market value immediately before death, and any gain not sheltered by the principal residence exemption is reported on their final return, unless it passes to a spouse, which defers the gain. How the deemed disposition works is in taxes at death, and the return itself in how to file taxes for a deceased person.
Severing a joint tenancy
A joint tenant can usually end the joint tenancy on their own, turning it into a tenancy in common, by registering a document at the land registry (in Ontario, a transfer to sever the joint tenancy). Transferring their interest to someone else also severs it.
| Reason | Details |
|---|---|
| Separation or divorce | So each spouse’s share no longer passes to the other |
| Estate planning | So your share goes to your children rather than your co-owner |
| Changed contributions | When one owner starts paying more or less |
A separation or divorce doesn’t automatically sever a joint tenancy in most provinces, so a separated spouse may still receive the property by survivorship until it is severed; the rest of a separation is in the divorce and separation financial checklist.
A co-ownership agreement
Whatever the title says, a written co-ownership agreement records:
| Topic | What it covers |
|---|---|
| Ownership shares | Who owns what |
| Contributions | Down payment, mortgage payments, taxes, insurance, maintenance |
| Decisions | Renovations and major repairs |
| Selling | The process, a right of first refusal, how proceeds are split |
| Disputes | Mediation before court |
| Separation | Buyout process, timeline and valuation |
| Death | How it fits with each owner’s will; see how to make a will |
Common mistakes
- Assuming spouses own as joint tenants. The title has to say “joint tenants”; some couples hold as tenants in common without knowing it.
- Adding a child to title without paperwork. Without a written record of the intention, the share can end up back in the estate, and the tax and creditor risks above apply anyway.
- Not severing after a separation. Survivorship can still pass the home to a former spouse.
- Relying on survivorship for incapacity. A joint tenant who loses capacity still has to sign to sell or refinance; a power of attorney is what lets someone act for them.
Related pages
Sources
The figures and rules on this page come from these sources. How we check facts.
- BC Laws: Probate Fee Act
- Government of British Columbia: Wills, Estates and Succession Act and Probate Rules
- Government of Ontario: Estate Administration Tax