Joint Tenancy vs Tenants in Common on Alberta Land Titles

If you are buying a home with a partner, a relative or a friend, one of the first choices on the transfer is how the two of you will hold title. The choice looks small on paper, but it decides what happens to your share if you die and how easily the ownership can be changed later.

Alberta has two common ways to share ownership of land: joint tenancy and tenancy in common. This article explains how they differ, how Alberta Land Titles records each one, and what happens if co-owners later want to sell or part ways.

This article covers the law of Alberta.

The main difference: what happens when an owner dies

With joint tenancy, each owner has a right of survivorship. When one owner dies, that person's share in the land goes to the other owners.

With tenancy in common, each co-owner holds an individual share. When one dies, the share does not pass to the other owners but to that person's estate. That means it is dealt with under their will or, without a will, under the rules for an estate with no will.

Put simply, joint tenancy is often chosen when owners want the survivor to end up with everything. Tenancy in common suits owners who want their own share to go to their own family or beneficiaries.

How Alberta Land Titles records each form of ownership

Alberta titles are kept under the Torrens system created by the Land Titles Act, and the government is responsible for the validity and security of registered land title information.

To be joint tenants, the transfer document must say so. You specify joint tenancy on the transfer, and it is then shown on title. Tenancy in common is the default if joint tenancy is not specified.

Why the wording of the transfer matters

The Law of Property Act says that when land is transferred to two or more people (other than as executors or trustees), they take as tenants in common unless an intention that they take as joint tenants sufficiently appears on the instrument. If you want survivorship, make sure the transfer clearly says so.

Spouses are a special case. Where land is transferred to a husband and wife, they take according to the tenor of the transfer, so they are joint tenants only if the transfer says so. Married couples should not assume survivorship applies automatically.

The Transfer of Land form asks for the full names and addresses of the new owners, and its tooltips refer to them as joint tenants. Read the form carefully and confirm how the ownership will be shown before you sign.

Changing the type of ownership, selling and ending co-ownership

Co-owners can convey interests between joint tenancy and tenancy in common forms. Transferring a joint tenancy to yourself as a tenant in common severs the joint tenancy on registration. However, the Registrar will not register a transfer that severs a joint tenancy unless all joint tenants sign it, the other joint tenants consent in writing, or they have received written notice by personal or substitutional service.

If co-owners cannot agree on selling, a co-owner may apply to the Court for an order terminating the co-ownership. The Court may order:

• a physical division of the land
• a sale with the proceeds shared among the co-owners
• a sale of that co-owner's interest to the other co-owners who want to buy it

If the highest offer on a court-ordered sale is below the interest's market value, the Court may refuse to approve the sale and make further orders. The Court can also order accounting, contribution or compensation, for example where a co-owner was excluded or the property was wasted.

Even where co-owners have an agreement, the Court may terminate co-ownership if continuing it will cause undue hardship to one or more of them. For separating spouses, Family Property Act rules can also allow a court to sever a joint tenancy.

What to do next

• Decide with your co-owners whether you want survivorship or separate shares.
• Check that the transfer document states joint tenancy if that is what you intend.
• Review your will, since a tenant in common's share passes through their estate.
• Look at your mortgage and any co-ownership agreement for rules on selling or buying out an owner.
• If you are married or in a long-term relationship, ask a lawyer how your choice fits with family property rules.

A lawyer can confirm how the wording on your own transfer will be read and whether changing the form of ownership makes sense for your situation.

Frequently asked questions