Joint Tenancy vs Tenants in Common in British Columbia Explained

If you are buying a home with a partner, a relative or a friend, the Land Title Office will ask how you want to hold title. The two usual answers are joint tenancy and tenants in common, and they lead to very different results if one owner dies or wants out.

This article explains the difference in plain words, what BC law presumes if nothing is said, and what to think about before you sign. It is general information, not advice on your own situation.

This article covers the law of British Columbia.

The core difference

A true joint tenancy requires identical interests, and the law describes this through four unities: title, time, possession and interest. When a joint tenant dies, the right of survivorship passes the interest to the surviving joint tenant or tenants.

Tenants in common each hold their own share. There is no survivorship between them, so a deceased owner's share goes into their estate instead of to the other owners. That follows from the survivorship rule being tied to joint tenancy.

What BC presumes if nothing is said

Where land is transferred to two or more persons, they are tenants in common unless a contrary intention appears in the instrument. If their interests are not stated, they are presumed to be equal.

Married spouses get no special default. Spouses must be treated as two persons when land is acquired, so a transfer to spouses is not outside the tenancy-in-common presumption just because they are married. If you want a joint tenancy, the transfer needs to say so.

One exception: if a person holds their interest as a trustee, a true joint tenancy is not established.

Unequal shares and contributions

Joint tenants hold identical interests, so unequal ownership is not possible within a true joint tenancy. Tenants in common can hold unequal shares only if those shares are stated.

For example, if A conveys a quarter interest to B, A severs and is registered as to a 1/4 interest and B as to a 3/4 interest. If one buyer puts in far more money than the other, tenants in common with stated shares is the structure that can reflect that.

How a joint tenancy can end

A joint tenant may transfer their interest to themselves, and that has the same effect of severing the joint tenancy as a transfer to a stranger, which turns that share into a tenancy in common. Some events also sever on their own or are required to:

• The registrar requires severance before registering a mortgage by one joint tenant of their own interest, done by transferring the mortgagor's interest to themselves first.
• A mortgage of one's own interest and an assignment in bankruptcy are severing events.
• Registering a judgment against one joint tenant does not sever the tenancy, and if the debtor dies the survivor takes free of the judgment.

Either type of co-owner may be compelled to partition or sell the land, and if owners holding at least half the property request a sale, the court must order it unless there is good reason to the contrary.

Choosing and next steps

Joint tenancy often suits couples who want the home to pass directly to the survivor. Tenants in common often suits friends, relatives or couples with children from earlier relationships, or owners who contributed different amounts and want their share to go through their will. Neither is right for everyone.

• Decide whether each owner wants their share to pass to the others or to their own estate.
• Agree on whether contributions are equal, and if not, what shares should be stated.
• Check whether any owner holds as a trustee, since that affects joint tenancy.
• Ask whether a mortgage or debts could sever the tenancy later.
• Review your wills so they match how title is held.
• Have a lawyer confirm the wording of the transfer before it is registered.

Frequently asked questions