The two most common ways for two or more parties to hold title (take ownership) of a property is by joint tenancy or tenancy in common.
In a joint tenancy, the co-owners hold the property as a whole, with each person holding their own equal interest.
The main benefit of joint tenancy is the right of survivorship which allows the surviving owner(s) on title to inherit the deceased’s interest in the property, often an objective for married or common-law spouses. The surviving joint tenant(s) usually automatically become the owner(s) of the property regardless of the provisions of the deceased’s Will. This type of ownership can also be beneficial for other related individuals for estate planning purposes, but can result in additional tax reporting obligations for the owners.
If more than two people are joint tenants of a property, the joint tenancy remains between the remaining parties after the passing of one of the co-owners.
With tenants in common, each co-owner possesses a percentage of the property. One co-owner can have a greater percentage in the property than the other(s). When one person dies, their ownership percentage will be distributed according to their Will, or if they do not have a Will, according to the provisions of the Succession Law Reform Act, 1990.
Generally, it is a good idea to have a co-ownership agreement to outline the rights to the property as between the parties involved. Examples of this could include who is responsible for property taxes, maintenance, utilities, or any other applicable costs related to the home.
More information? We’re here to help – [email protected] This WARDS LAWYERS PC publication is for general information only. It is not legal advice, nor is it intended to be. Specific or more information may be necessary before advice could be provided for your particular circumstances.
