Joint Tenants vs. Tenants in Common: What Ontario Co-Owners Should Know
When two or more people own a property together in Ontario, the way title is held matters — not just today, but for what happens if an owner passes away or the owners' interests aren't equal. Here's the difference between the two ways to hold title, and why it's worth thinking through before you close.
Joint Tenancy
Under a joint tenancy, all owners hold an equal, undivided interest in the property. The defining feature is the right of survivorship: if one owner passes away, their interest automatically passes to the surviving owner(s) — not through their will or estate.
Key features:
Ownership shares must be equal among all owners
On death, the property passes automatically to the surviving joint tenant(s)
The deceased owner's interest does not go through probate or their estate
Commonly used by spouses and family members who want the property to pass directly to each other
Tenancy in Common
Under a tenancy in common, each owner holds a distinct, separate share of the property — which doesn't have to be equal. There is no right of survivorship. If an owner passes away, their share becomes part of their estate and is distributed according to their will (or under intestacy rules if they don't have one).
Key features:
Ownership shares can be unequal (for example, 70/30 or 60/40)
Each owner can sell, mortgage, or leave their share to whomever they choose
On death, the deceased owner's share passes through their estate, not automatically to the co-owner
Often used by business partners, investors, or family members contributing unequal amounts toward a purchase
Why the difference matters
The way you hold title affects:
What happens when an owner dies — automatic transfer to the survivor versus passing through an estate
Estate planning — whether the property is dealt with in a will or bypasses it entirely
Flexibility — whether owners can hold unequal shares and deal with their portion independently
Creditor and family-law exposure — how a share may be treated in each ownership structure
There's no universally "better" option — the right structure depends on your relationship to the other owner(s), how the purchase is being funded, and your broader estate planning goals.
Can you change it later?
Yes. It's possible to convert between joint tenancy and tenancy in common after closing, through a legal document called a severance. This is sometimes done later in life, or when circumstances between co-owners change.
The bottom line
How you hold title isn't just a formality on your closing documents — it determines what happens to your share of the property down the road. It's worth discussing with your lawyer before closing, especially if you're buying with someone other than a spouse, or contributing unequal amounts to the purchase.
Not sure which structure fits your purchase? Contact Darr Law before your closing, and we'll walk you through the options as part of your file.
