Buying With a Partner: Joint Tenancy vs Tenants in Common

When two or more people buy a home together in Ontario, the title can be registered as either joint tenancy or tenants in common. The difference matters more than it sounds, and it's nearly impossible to change cleanly later.

Joint tenancy means all owners hold an equal, undivided interest in the entire property, and the right of survivorship applies. If one owner dies, their interest passes automatically to the surviving owner(s) — outside of the will, outside of probate, immediately on death. Joint tenancy is the default for married and most common-law couples who view the home as fully shared.

Tenants in common means each owner holds a defined share of the property (50/50, 60/40, 70/30, or any other split), and each share is treated as that owner's separate asset. If an owner dies, their share passes through their estate according to their will (or intestacy rules if there's no will). The surviving co-owner does not automatically inherit it. Tenants in common is the right choice when ownership shares are unequal, when co-owners have separate estate plans (children from previous relationships, for example), or when business partners or family members are buying together as an investment rather than a shared home.

The right-of-survivorship issue is the most common surprise. A common-law couple registers joint tenancy assuming "we own it together." One partner dies with no will, leaving children from a previous marriage. The other partner inherits the entire home automatically — and the deceased's children inherit nothing from the house. If the intent was for the children to receive a share, tenants in common (with the deceased's share flowing through a will to the children) is the structure that would have delivered that outcome.

Other practical differences. Tenants in common can sell or mortgage their individual share without the other owner's consent (though buyers for fractional interests are rare). Joint tenants cannot — any sale or mortgage requires all owners. Tenants in common can have unequal shares; joint tenants cannot.

Talk to a real estate lawyer AND, if your situation is at all complex (blended family, business partnership, gifted down payment), an estate lawyer BEFORE closing. The structure goes on title at closing and changing it later requires re-conveying the property, which can trigger land transfer tax all over again.

More from the journal:

• Lawyers and closing day
• Closing costs in Ontario

Trusted outside sources:

• Ontario: Wills and estates
• Law Society of Ontario