Bourne, Jenkins & Mulligan

January 15, 2003
What are "Joint Tenants" and "Tenants-in-Common"?

by Amy MacMillan

When real estate is purchased by more than one owner, it must be decided whether to take title to the property as “joint tenants” or as “tenants-in-common”. Each is a form of ownership with distinct characteristics.

An important feature of joint tenancy is the right of survivorship. On the death of a joint tenant, his or her interest in the real estate passes automatically to the surviving joint tenant. A joint tenant cannot pass his or her interest in real estate by Will to another person. The transfer of title through surviving joint tenancy saves probate tax and may have other estate planning benefits. Joint tenancy is the usual preference for spouses, and it can also be used in other situations if “survivor takes all” is the intended result.

Tenancy-in-common does not include a right of survivorship. When a tenant-in-common dies, his or her interest in the property becomes part of his or her estate and it can be dealt with in his or her Will. If a tenant-in-common dies without a Will, his or her interest passes to his or her heirs according to Ontario’s intestacy laws. Tenancy-in-common is typically used in business partnerships or extended family holdings (for example, in the case of siblings sharing ownership of a cottage). Tenants-in-common can sell or mortgage their interests in real estate separately.

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