Joint Tenancy vs. Tenants in Common: Pros and Cons in Ontario

When you buy property with someone else in Ontario — whether a spouse, family member, business partner, or friend — you must choose how to hold title: as joint tenants or tenants in common. 

This decision profoundly affects what happens to your share when you die, your ability to sell or mortgage independently, and your exposure to the other owner’s financial problems. 

Understanding the pros and cons of each ownership structure helps you make the right choice for your situation.

Joint tenancy means all owners hold equal, undivided interests with the right of survivorship. When one owner dies, their share automatically passes to the surviving owner(s) outside the estate.

Tenants in common means each owner holds a distinct share (equal or unequal) without survivorship rights. When one owner dies, their share passes through their will to whoever they chose, not automatically to the co-owner.

Automatic transfer at death: The biggest advantage is simplicity; your share automatically transfers to the surviving joint tenant without probate, will challenges, or estate administration delays.

Avoids probate fees: Since the property doesn’t pass through your estate, you avoid Estate Administration Tax (probate fees) on that asset’s value. 

Speed and certainty: Survivors gain immediate ownership without waiting months or years for estate settlement.

Loss of testamentary control: You cannot leave your share to anyone except your joint tenant(s). Even if your will says otherwise, the right of survivorship overrides your will. If you want your children, other family members, or charities to inherit your property share, joint tenancy prevents this.

Exposure to co-owner’s creditors: If your joint tenant is sued, declares bankruptcy, or has judgments against them, creditors may be able to force a sale of the property or place liens against it to satisfy their debts. Your half gets caught up in someone else’s financial problems.

Unequal contributions ignored: Joint tenancy presumes equal ownership regardless of who paid what. If you contributed 80% of the purchase price but hold the asset as joint tenants, you legally own only 50%. When the other joint tenant dies, their estate benefits from half the value despite their smaller contribution.

Difficult to change without cooperation: While you can unilaterally sever a joint tenancy to convert to tenants in common, doing so often damages relationships and can trigger disputes, especially if the other party expected to inherit through survivorship.

Testamentary freedom: You can leave your share to anyone you choose through your will; children, other family members, friends, or charities. Your co-owner has no automatic claim.

Flexible ownership percentages: Shares can be unequal to reflect actual contributions. If you paid 70% and your co-owner paid 30%, ownership can reflect that reality – 70/30 rather than forcing 50/50.

Independent dealings: You can sell, mortgage, or gift your share without the other owner’s permission (though practical difficulties exist in finding buyers for partial interests).

Creditor protection: Your co-owner’s creditors can only claim against their share, not yours. Your portion has some protection from their financial troubles.

Probate fees apply: Estate Administration Tax is payable on your share’s value.

Estate delays affect co-owners: The surviving co-owner becomes co-owners with your estate or your beneficiaries, creating potential conflicts and delays in selling or managing the property.

More complex estate administration: Executors must deal with partial property interests, potentially requiring appraisals, partition applications, or negotiated buyouts.

Our litigation lawyers help clients choose the right ownership arrangement, resolve co-owner conflicts, and handle partition and sale applications. Contact us for a confidential consultation at 416.901.9984 or info@pintoshekib.ca.