Joint Tenants vs. Tenants in Common: Key Differences in Ontario

When co-owning property in Ontario, you can choose between two legal structures: “joint tenants” or “tenants in common”. Each has distinct implications for ownership, inheritance, and decision-making.

What is Joint Tenancy?

Joint tenancy is a form of ownership where all owners hold equal shares, with the most important feature being the right of survivorship. When one owner dies, their share automatically transfers to the surviving co-owners without going through probate, which is the legal process of proving a will is valid and granting the executor the authority to administer the deceased's estate.

PROS	CONS
Simplifies transfer of property after death	No flexibility to leave your share to someone in your will
Avoids probate costs and delays	Requires agreement among all co-owners for major decisions

What is Tenancy in Common?

As tenants in common, each owner holds an individual share of the property, which can be unequal. Importantly, there is no right of survivorship. Owners can leave their share to heirs through their will, and each can sell or transfer their share independently.

PROS	CONS
Flexibility in estate planning	Probate is required to transfer ownership  after death
Ownership shares can reflect different contributions	Disagreements can arise if one owner wants to sell their share

Choosing Between the Two

When deciding between joint tenants and tenants in common, consider your long-term goals. Joint tenancy is ideal for those seeking an automatic transfer of property ownership, making it a popular choice for spouses. Tenancy in common, on the other hand, offers more flexibility, particularly for co-owners who want control over their individual shares or plan to leave their portion to specific heirs.

Consulting with a professional can help you make the right choice based on your unique situation.