Joint Tenants vs Tenants in Common in Ontario Explained
In Ontario, people who buy a home together own it either as joint tenants or as tenants in common. Joint tenants own the whole property together in equal shares, and when one dies, the survivor automatically owns it all. Tenants in common each own a defined share, equal or unequal, and each share passes under its owner’s will. If the transfer does not say which one you chose, Ontario law presumes you are tenants in common.
The choice is recorded on your transfer at closing, and it decides who gets the home if one owner dies, even if a will says something else. Many buyers only learn what they chose years later, during an estate or a separation.
RealEstateLawyers.ca LLP is an Ontario real estate law firm that closes home purchases and title transfers across the province. This guide explains how each type of ownership works, what it means for Estate Administration Tax and how to choose before you sign.
Joint Tenants vs Tenants in Common at a Glance
| Joint tenants | Tenants in common | |
|---|---|---|
| Share size | Always equal | Equal or unequal, such as 60/40 |
| When an owner dies | Their interest passes to the surviving owner or owners | Their share passes under their will, or under intestacy rules if there is no will |
| Estate Administration Tax | Generally not charged on the home | The deceased owner’s share is counted in their estate |
| If the transfer is silent | Does not apply | Applies by default |
| Often chosen by | Spouses and committed partners | Friends, siblings, investors and blended families |
How Joint Tenancy Works
Joint tenants hold equal, undivided interests. Nobody owns a particular half. Each owner has an interest in the whole property.
The key feature is the right of survivorship. When one joint tenant dies, their interest passes automatically to the surviving owner or owners, outside the estate. A will cannot leave a joint tenant’s interest to anyone else. Because the home does not pass through the estate, it is generally left out of the estate value used to calculate Ontario’s Estate Administration Tax.
Joint tenancy can be ended, which lawyers call severing it. One owner can sever it by transferring their interest, or the owners can end it by agreement.
Spouses have extra rules under Ontario’s Family Law Act. If a spouse owns a matrimonial home as a joint tenant with someone other than their spouse, such as a parent, the joint tenancy is treated as severed just before that spouse’s death. The other joint tenant does not automatically take the whole home.
Adding an adult child to title carries its own risk. Under the Supreme Court of Canada’s decision in Pecore v. Pecore, when a parent puts an adult child on title without payment, the law presumes the child holds that interest for the parent’s estate unless there is evidence the parent meant it as a gift. Families end up in court over this question. If you are thinking about putting a child on title to pass the home on, read our guide on how to inherit a house in Canada first.
How Tenancy in Common Works
Tenants in common can own equal shares or unequal ones, such as 60/40 or 70/30. Each share belongs to its owner. When an owner dies, their share passes under their will. It does not go to the other co-owners.
Ontario’s default favours this structure. Section 13 of the Conveyancing and Law of Property Act presumes that a transfer to two or more people creates a tenancy in common unless the transfer clearly states a joint tenancy. If your transfer says nothing about how you hold title, you are almost certainly tenants in common.
Shares also matter for first-time buyer rebates. If you buy with someone who has owned a home before, the land transfer tax refund is reduced to match the first-time buyer’s share of the home. Our guide to first-time buyer land transfer tax in Ontario shows how that works.
Worked Example: Estate Administration Tax on a Shared Home
Two siblings own a $900,000 home with no mortgage, each holding half. One sibling dies, and their half of the home is the only asset in their estate.
| Joint tenants | Tenants in common | |
|---|---|---|
| Value of the deceased sibling’s interest | $450,000 | $450,000 |
| Where it goes | To the surviving sibling, outside the estate | To the estate, then to whoever the will names |
| Value counted for Estate Administration Tax | $0 | $450,000 |
| Estate Administration Tax payable | $0 | $6,000 |
Ontario charges no Estate Administration Tax on the first $50,000 of an estate and $15 for every $1,000 above that. In this example, $400,000 is taxable at 1.5%, which comes to $6,000. A mortgage on the home would reduce the value counted.
The tax saving is only one side of the decision. As tenants in common, the sibling chooses who inherits their share. As joint tenants, the other sibling takes it, whatever the will says.
How to Choose Between the Two
| Your situation | The structure buyers often choose |
|---|---|
| Married or common-law partners who want the survivor to keep the home | Joint tenants |
| Co-buyers who put in different amounts | Tenants in common, with shares that match the contributions |
| Friends, siblings or investors buying together | Tenants in common |
| Blended families with children from earlier relationships | Often tenants in common, so each owner’s share goes to their own children |
| A parent adding an adult child to title | Get legal and tax advice before signing |
A written co-ownership agreement can settle the hard questions in advance, such as buyout terms, who pays for taxes and repairs, and how disagreements get resolved. Without one, an owner who wants out can ask a court to order the property divided or sold under Ontario’s Partition Act. That process is slow and expensive, and neither owner controls the result.
Changing How You Hold Title Later
You can change from joint tenants to tenants in common, or add or remove an owner, by registering a new transfer. Changes like these can affect land transfer tax, income tax and family law rights, so get advice before you sign anything. Our title transfer service handles adding or removing an owner on title, and you can get a quote before you start.
Confirm the Wording Before You Sign
What counts on death is the wording on the registered transfer. A verbal understanding with your co-buyer will not change it. Before you sign, check that each name is followed by the right type of ownership, plus percentages if you are tenants in common. RealEstateLawyers.ca LLP closes purchases across Ontario for a flat legal fee, and you can speak with a lawyer about how to take title before your documents are prepared. Request your free quote and tell us who will be on title.
Frequently Asked Questions
Which type of ownership applies if the transfer does not say?
Tenants in common. Ontario law presumes a tenancy in common unless the transfer clearly states a joint tenancy.
Can we change from joint tenants to tenants in common later?
Yes. A joint tenancy is usually severed by registering a transfer or by agreement between the owners. Get advice first, because the change can have tax and family law effects.
Can joint tenants own unequal shares?
No. Joint tenants always hold equal interests. If you want unequal shares, you need to hold title as tenants in common and state the percentages on the transfer.
Can a joint tenant leave their share of the home in a will?
No. A joint tenant’s interest passes to the surviving owner on death. To leave a share by will, the joint tenancy has to be severed before death.
Does joint tenancy avoid probate in Ontario?
Generally, a home held in joint tenancy passes to the surviving owner outside the estate, so it is not counted for Estate Administration Tax. Adding someone to title to save that tax can create other risks, so get advice before you do it.
This article provides general information only and is not legal advice. For advice about how to hold title on your purchase, speak with a lawyer.
