When purchasing a home or investment property in British Columbia, one of the first decisions co-owners need to make is how to hold title. The two most common options are joint tenancy and tenancy in common.
At first glance, these terms might sound similar, but they carry very different legal and estate planning consequences. Understanding the difference can help you make informed choices about how your property will be owned, transferred, and taxed — both during your lifetime and after your passing.
What Does It Mean to Be Joint Tenants?
When people own property as joint tenants, they each hold an equal share of the whole property. In other words, no one person owns a specific portion — all owners share ownership together.
The Right of Survivorship
The defining feature of joint tenancy is the right of survivorship (when the joint tenancy is with a spouse). This means that if one of the spouses passes away, their share automatically transfers to the surviving co-owner or co-owners. Because the deceased spouse’s interest doesn’t form part of their estate, the property avoids probate, making the transfer of ownership quicker and less expensive.
This process continues until only one owner remains, at which point that person becomes the sole owner of the property.
The law presumes that joint ownership with children is just for convenience and therefore doesn’t come with the right of survivorship. Once the parent dies, the asset does pass to the child, but they then have a duty to distribute the assets according to the will of the deceased. This is called a resulting trust. This does not usually bypass the probate tax in BC.
The Four Unities of Joint Tenancy
For a joint tenancy to exist, four legal conditions — known as the four unities — must be met:
- Unity of time: All owners acquire their interest at the same time.
- Unity of title: All owners receive their interest through the same deed or will.
- Unity of interest: Each owner holds an equal share.
- Unity of possession: All owners have an equal right to occupy and use the property.
Because of the simplicity and the automatic transfer feature, joint tenancy is most common between spouses or common-law partners. However, as mentioned, it can become complicated when property is held jointly between a parent and a child.
What Does It Mean to Be Tenants in Common?
When property is owned as tenants in common, each co-owner has their own distinct share of the property. These shares can be equal or unequal — for example, one owner may hold 60% while another owns 40%.
Separate Ownership and Flexibility
Each owner also has the freedom to sell, transfer, or mortgage their share without needing the consent of the other co-owners. This flexibility makes tenancy in common an attractive option for co-owners who want to maintain control over their individual interests.
No Right of Survivorship
Unlike joint tenancy, there is no right of survivorship with tenancy in common. If one co-owner dies, their share becomes part of their estate and is distributed according to their will or British Columbia’s inheritance laws as per the Wills, Estates and Succession Act. As a result, the property usually passes through probate, and probate fees will apply.
Tenancy in common is often preferred by friends, siblings, or business partners who want to co-own property but maintain separate ownership rights and estate plans.
Which Form of Ownership Is Right for You?
There’s no one-size-fits-all answer. Both joint tenancy and tenancy in common have their benefits and drawbacks, depending on your goals and circumstances.
If you want ownership to pass seamlessly to a surviving spouse, joint tenancy may make sense. If you want more flexibility in controlling your share of the property — or if you are buying with someone who is not a spouse — tenancy in common might be the better option.
Before deciding, it’s important to speak with an experienced legal professional. Our team at Westcoast Wills & Estates can help you understand how your ownership structure will affect your estate plan, taxes, and future property transactions so you can choose the option that best aligns with your goals.
Next Steps
If you have questions about about property ownership, estate planning, or probate in British Columbia, please reach out to one of our experienced lawyers in Vancouver today.
