What is the difference between joint tenancy and tenants in common in Ontario?

When two or more people buy a property together in Ontario, they must decide how to hold title. The two main options are joint tenancy and tenants in common, and the difference has significant consequences — especially on death.

In a joint tenancy, all co-owners hold an equal, undivided interest in the whole property, and there is a right of survivorship. This means that when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) — it does not go through the deceased's estate or will. Joint tenancy is very common among married spouses.

In a tenants-in-common arrangement, each co-owner holds a defined share (which can be unequal — for example, 60/40) and can leave their share to whoever they choose in their will. There is no right of survivorship. When a tenant-in-common dies, their share passes through their estate. This structure is often used by investors, business partners, or family members who want to preserve their individual inheritance plans.

You specify which form of co-ownership you want at the time of purchase, and it is reflected in the registered transfer. Changing from one form to the other later requires a legal process called a severance. Talk to your lawyer about which structure makes sense given your relationship with your co-buyer and your estate planning goals.