Your Property Title Might Not Mean What You Think

When you and one or more other people buy a property in British Columbia (or co-own one), you have to choose how you hold title. Two common forms are Joint Tenancy and Tenancy in Common. While they might outwardly look similar (you co-own the property), the legal and financial consequences can differ substantially — both now and in the future. In most cases, many assume that the title is being registered with Joint Tenancy, so ensure you inform your lawyer / notary if that is the not the case. 

So What Does This Mean on the Title?

Joint tenancy means that all owners co-own an undivided interest in the whole property, usually equally. Importantly, when one joint tenant dies, their interest automatically passes to the surviving owner(s) — this is known as the right of survivorship.

Tenancy in common means each co-owner holds an undivided share (which can be equal or unequal) of the property. When they die, their share goes to their estate or to whomever they name in their Will — it does not automatically go to the other co-owner(s).

Understanding Probate – Why is this Relevant?

When a property owner dies, their estate usually goes through a legal process called probate. Probate is the court’s way of confirming that:

1. The Will (if there is one) is valid, and
   
2. The executor has the authority to deal with the deceased’s assets.

In British Columbia, probate is required if the deceased owned assets solely in their name — such as a home, investments, or bank accounts. The process can take several months and involves probate fees (about 1.4% of the estate’s value above $50,000).

If a property is held in joint tenancy, the right of survivorship means it bypasses probate — ownership passes directly to the surviving co-owner. However, if the property is owned as tenants in common, the deceased’s share must go through probate before it can be transferred to heirs. That distinction is often why couples or family members choose joint tenancy, though it’s not always the best option depending on their estate goals.

So Let’s Discuss the Pros & Cons – Now & in the Future

Joint Tenancy

Pros:

• Avoids probate: On death, ownership transfers automatically to the surviving co-owner, avoiding court delays and probate fees.
• Simpler succession: Great for married or common-law partners who simply want the home to pass to the survivor.

Cons:

• Lack of flexibility: All owners have equal shares — even if one contributed more.
• Estate planning risk: If one owner wants their portion to go to someone else (like a child from a prior relationship), joint tenancy overrides that.
• Severance risk: The joint tenancy can be severed (converted to tenancy in common) if one party transfers or mortgages their share, potentially changing legal and tax outcomes.
• Exposure to creditors: If one owner has debts, creditors could make claims that affect the property.

   

Tenancy in Common

Pros:

• Flexibility: Shares can be unequal, reflecting different contributions.
• Control over inheritance: Each co-owner can will their share to anyone they choose.
• Estate planning friendly: Ideal for blended families, siblings, or investment partners.

Cons:

• Subject to probate: The deceased’s share must go through probate before transfer, adding time and cost.
• Potential for disputes: Unequal ownership or differing goals can lead to conflict about selling or maintaining the property.
• No automatic continuity: The surviving owner(s) may suddenly co-own the property with a beneficiary or heir they didn’t choose.

Financial, Tax & Estate Implications in BC on Why It’s Important to Know this Now

Probate fees: Joint tenancy can reduce or avoid probate on a property, though the rest of the estate may still require it.

Capital gains tax: Selling the property or transferring ownership triggers tax on any increase in value unless it’s your principal residence.

Asset protection: With tenancy in common, each owner’s share is distinct, potentially limiting exposure to another owner’s liabilities.

Estate clarity: Choosing the right title structure helps prevent family disputes, unintended tax costs, or complications with beneficiaries.

Key Questions to Consider When it Comes to Your Asset Allocation

• What happens to my share if I pass away — should it go to my co-owner or my heirs?
• Are ownership shares equal to our financial contributions?
• Do I want the flexibility to sell or transfer my share independently?
• Have I discussed the title structure with a real estate lawyer or estate planner?

   

The choice between joint tenancy and tenancy in common isn’t just a legal title or distinction — it determines how your home is handled during your lifetime and after. Joint tenancy offers simplicity and automatic transfer but less flexibility. Tenancy in common provides control and fairness but comes with more legal process on death. For BC homeowners, aligning your title choice with your long-term financial and estate goals ensures peace of mind for both you and your loved ones. So ensure you truly take the time to think about this when it comes to asset purchase and allocation. 

Sources & Citations

• HGR Graham Partners LLP – Joint Tenants vs. Tenants in Common
• DBM Law – Joint Tenancy vs Tenancy in Common
• Winright Law – Tenants in Common vs Joint Tenants
• BC Real Estate Law Blog – Joint Tenancy vs Tenants in Common
• Northam Law – Tenancy in Common vs Joint Tenancy in BC
• Onyx Law – Severing Joint Tenancy with Right of Survivorship in BC
• FH&P Lawyers – Explaining Tenancy in Common & Joint Tenancy
• The Westhaven Group – Tenancy in Common vs Joint Tenants