- Tajinder Kaur Sivia
- 27-Nov-2025
When the buyer of real estate enters into a purchase with another individual, such as a spouse, parent, business associate, or investor, one of the initial legal choices you will make is the manner in which you will assume possession of the property. The two widely used types of joint ownership in Ontario include Joint Tenancy and Tenants in Common (TIC).
Even though the two terms are similar, they also differ notably in ownership rights, inheritance, and financial obligations, and what may occur when one of the owners dies. Selecting the incorrect structure would cause legal issues in the future, in particular, when dealing with estate planning or selling properties.
This guide describes the main distinctions between the tenants in common and joint tenancy, the way both work, and the manner in which either can be selected to fit your requirements.
What Is Joint Tenancy?
Joint tenancy: It is a type of co-ownership in which two or more individuals have an equal share of a property. No matter the amount an individual contributes, whether towards high amounts or lesser sums, every joint tenant equally owns the property, with equal rights and liabilities.
The Right of Survivorship
Right of survivorship is the most crucial aspect of a joint tenancy.
This implies that in case a joint tenant passes on, he transfers automatically to the other joint tenants who are still alive, bypassing the whole will and estate process.
To take an example, in the case of a married couple who owns a house jointly as tenants and one of them passes away, the other spouse assumes all the rights as the sole owner.
Key Features of Joint Tenancy
Equal ownership shares (cannot be uneven).
Right of survivorship applies.
Owners must acquire an interest at the same time.
All parties appear on the title together.
Often used by married couples or common-law partners.
Benefits of Joint Tenancy
Simplifies estate transfer upon death.
Avoids probate fees on the deceased owner’s share.
Ensures property remains with surviving family members.
Clear and equal decision-making rights.
Drawbacks
You cannot leave your share to someone else in your will
All owners must agree on selling or refinancing
The problem of crediting one of the owners can impact the whole property
Joint tenancy works best when long-term co-ownership and estate simplicity are the priorities, such as married couples purchasing a family home.
What Is Tenants in Common (TIC)?
The tenants in common form is a flexible type of co-owning where the individual owners have their own separate free shares of the property.
Such shares may be either even or uneven, based on the arrangement.
One owner can have 60 percent and another owner 40 percent.
No Survivorship Rights
Tenants in common are not guaranteed survivorship, compared to joint tenancy. One owner's share is transferred in accordance with their will or Ontario's inheritance laws upon their death.
Key Features of Tenants in Common
Ownership shares can be unequal.
Each owner controls what happens to their share after death.
Suitable for investment properties, friends purchasing together, or blended families.
Each owner may sell or transfer their share (with some limitations).
Benefits of Tenants in Common
Maximum flexibility in ownership percentages.
Each owner controls their estate planning.
Ideal for business or investment partnerships.
Allows unrelated buyers to protect their respective investments.
Drawbacks
Survivorship does not apply—estate processing may be longer.
Disagreements about selling or maintaining the property may arise.
One owner’s financial problems could affect the whole property.
The common tenancy is normally preferred in situations where various individuals make different contributions or desire the entire control of the share.
The Comparison between Joint Tenancy and Tenants in Common
Which Ownership Structure is the Best One to Use?
The most suitable one will depend on your needs in terms of personal and financial, and estate planning. The most frequent situations are the following:
Choose Joint Tenancy If:
You want the property to pass to the surviving owner without complication.
You and your partner are contributing equally.
You are married or have a long-term relationship.
You do not want to pay any probate on the property.
Choose Tenants in Common If:
You are purchasing with a friend, brother, mother, or business associate.
Every individual is contributing various sums towards the purchase.
You want control over leaving your share to beneficiaries.
You are a blended family and need to secure the inheritance of the children.
Legal Factors to Consider in Ontario
Making an improper ownership structure may cause future legal issues. Before deciding, consider:
1. Estate Planning Goals
Joint tenancy simplifies transfer but limits inheritance planning. Tenants in common allow full control of your share.
2. Financial Contributions
If buyers contribute unequal amounts, tenants in common is typically more appropriate.
3. Risk of Disputes
Under a tenancy in common, one owner can force a sale by filing a partition application in court. Joint tenancy keeps things unified but requires strong trust between owners.
4. Tax Implications
Capital gains, principal residence rules, and estate taxes may vary depending on ownership structure.
5. Relationship Dynamics
The joint tenancy is usually preferred by married couples. Investment partners almost always choose tenants in common.
Talking to a real estate attorney will make sure that the ownership organization is in line with your financial plans, family background, and future objectives.
House Closing with a Real Estate Trusted Attorney
The housing transactions are linked with huge amounts of money and legally defined agreements. Though the majority of deals are not failures, anyone who failed has paid thousands or even more money to buyers and sellers. An attorney can mitigate that risk with the help of negotiation, contract discussion, removal of title problems, and proper legal and appropriate closing.
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FAQs
1. Can joint tenancy be changed to tenants in common?
Yes. A joint tenancy can be severed and converted to tenants in common through legal registration. A real estate lawyer ensures the process is done correctly and recorded on the title.
2. Do tenants in common need equal ownership shares?
No. Tenants in common can own unequal percentages based on contribution or agreement. This makes it the most flexible option for investors or unrelated buyers.
3. Does the right of survivorship apply to tenants in common?
No. In tenants in common, the deceased owner's share passes through their will or estate. There is no automatic transfer to the other co-owners.
4. Which option is better for couples?
Most couples choose joint tenancy for simplicity and survivorship benefits. However, blended families or those with complex estate needs may prefer tenants in common.
5. Can an owner sell their share in tenants in common?
Yes. An owner can sell or transfer their share independently, though the other owners must be notified. The new owner becomes a tenant in common on the title.
