- When land is conveyed to two or more persons, they take as tenants in common unless the document shows an intention that they take as joint tenants.
- This default applies even where one co-owner is the spouse of another.
- A tenant in common's share goes into their estate on death, while a joint tenant's share goes to the surviving co-owners.
If you are buying a home or an investment property with a friend, a sibling or a business partner, you will need to decide how you will hold title together. In Ontario the two main choices are tenancy in common and joint tenancy.
This article explains how tenancy in common works, how it differs from joint tenancy, and what to settle before you sign. Details such as how shares are divided are worth confirming with a lawyer.
What tenancy in common means
Tenants in common each own a share of the same property. Each person owns a share, and that share can generally be dealt with separately from the others, for example in a will. The shares do not have to be physically divided: you all have a right to use the whole property.
Co-ownership is common among couples, families, friends and investors, and each arrangement can be set up to fit what the owners want.
The default rule in Ontario
Under the Conveyancing and Law of Property Act, R.S.O. 1990, c. C.34, s. 13(1), where land is conveyed to two or more persons (other than executors or trustees), they take as tenants in common, not joint tenants. The exception is where the document shows an intention that they take as joint tenants.
Under s. 13(2), this applies even where one co-owner is the spouse of another. So if you want a joint tenancy, the document needs to say so clearly. The wording of the transfer matters, and a lawyer can help you get it right.
Tenants in common versus joint tenants
The biggest practical difference shows up when a co-owner dies. When a tenant in common dies, their share becomes part of their estate. When a joint tenant dies, the surviving co-owners inherit the deceased's share.
| Feature | Tenants in common | Joint tenants |
|---|---|---|
| Default for two or more buyers | Yes, unless the document says otherwise | Only if the document shows that intention |
| On a co-owner's death | Share becomes part of the estate | Surviving co-owners inherit the share |
If you want your share to pass under your will, tenancy in common usually fits. If you want the survivor to take everything automatically, joint tenancy may suit you better. Either way, the choice affects your estate planning.
Points to settle with your co-owners
Because each owner has a separate share, it helps to agree in writing how decisions will be made and what happens if someone wants out. A written co-ownership agreement is not something every buyer signs, but it can prevent disputes.
- How large each person's share is.
- Who pays the mortgage, taxes, insurance and repairs.
- What happens if one owner wants to sell.
- What happens if an owner dies, and how a buyout would work.
- How rental income and expenses will be handled if you rent the property out.
If you rent the property to others, each co-owner enters only their own share of the capital cost allowance on their tax return. An accountant can explain how the rest of the income and expenses are reported.
What to do next
- Decide together whether you want a tenancy in common or a joint tenancy.
- Ask your lawyer to make sure the transfer document says what you intend.
- Agree on the size of each share and put it in writing.
- Update your will so it reflects your share of the property.
- Consider a co-ownership agreement covering costs, sales and buyouts.
Frequently asked questions
Is tenancy in common the default in Ontario?
Yes. Where land is conveyed to two or more persons (other than executors or trustees), they take as tenants in common unless the document shows an intention that they take as joint tenants.
Does it matter if the co-owners are married?
No. The default applies even where one co-owner is the spouse of another. If spouses want a joint tenancy, the document should show that intention.
What happens to my share if I die?
As a tenant in common, your share becomes part of your estate. As a joint tenant, the surviving co-owners inherit your share instead.
Can I use my share of a rental property for tax purposes?
If the property is rented out, each co-owner enters only their own share of the capital cost allowance. An accountant can confirm how this applies to you.
Sources
- CRA Guide T4036, Rental Income — canada.ca
- Conveyancing and Law of Property Act, R.S.O. 1990, c. C.34 (CanLII) — canlii.org
- Ontario – Co-owning a home: co-ownership arrangements — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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