When Sarah’s husband passed away unexpectedly, she assumed their home would automatically transfer into her name. After all, they had purchased it together and shared everything. But when she went to update the property title, she was shocked to learn they were listed as Tenants in Common, not Joint Tenants. That meant her husband’s share of the home became part of his estate. And now, it had to go through probate and be divided according to his will. A simple misunderstanding during the home-buying process turned into months of legal complications, unexpected costs, and emotional strain during an already difficult time.
When purchasing property in British Columbia, one of the most important decisions you’ll make is how you hold legal ownership of that property. Whether you’re buying a family home, a recreational property, or an investment, understanding the distinction between Joint Tenancy and Tenancy in Common is essential. Not just for today, but for your future estate planning.
It’s not uncommon for people to complete their property transactions without fully understanding the implications of ownership structure. But this choice can significantly impact what happens to your property when one of the owners passes away, and it may also affect how disputes or estate issues are resolved.
At Carter Notary, we help clients navigate these decisions every day. In this article, we’ll break down the key differences between Joint Tenancy and Tenancy in Common, explain how ownership impacts your estate, and why reviewing your current property title may be more important than you think.
The Two Ways to Hold Property Title in British Columbia
When two or more people own property together in BC, the title must be registered in one of two ways: Joint Tenancy or Tenancy in Common.
Though these terms may sound similar, they carry very different legal and estate planning consequences.
What Is Joint Tenancy?
Joint Tenancy includes something called the right of survivorship. This means that when one owner passes away, their interest in the property automatically transfers to the surviving joint tenant(s). The deceased person’s share does not form part of their estate and is not distributed under their will.
This type of ownership is most commonly used by married or common-law couples who want to ensure that their spouse inherits the property without delays, legal complications, or the need to go through probate. It’s also sometimes used between aging parents and their adult children, although extreme caution should be taken in those cases (more on that below).
Benefits of Joint Tenancy
- Automatic transfer of ownership upon death of a co-owner
- Avoids probate and associated fees
- Simplifies estate administration
- Reduces potential for disputes or claims under the Wills, Estates and Succession Act
However, there is a catch that not everyone realizes: joint tenancy can be severed. This means that one joint tenant can unilaterally change the ownership to tenancy in common, without notifying the other owner. Once severed, the right of survivorship no longer applies.
What Is Tenancy in Common?
Under Tenancy in Common, each owner holds a defined share of the property, such as 1-99% or 50-50% of any amount equaling 100%. These ownership shares can be equal or unequal, depending on the agreement between the owners.
Crucially, when one of the tenants in common owners passes away, their share becomes part of their estate and is distributed according to their will (or according to intestate laws if there is no will). It does not automatically transfer to the other co-owner(s).
Why Choose Tenancy in Common?
- Useful in blended families or business partnerships
- Allows each owner to control the future of their share
- Estate proceeds can be left to children, relatives, or others
- Offers more flexibility in estate planning
This method is often chosen when co-owners want to ensure their heirs, rather than a co-owner, inherit their portion of the property. It’s also used in investment properties where unrelated parties are involved.
What the Law Presumes
You might wonder If I didn’t specifically choose one or the other, what does the law assume?
- For non-land assets (e.g., bank accounts, vehicles, household goods): The law generally presumes joint tenancy, unless otherwise indicated.
- For real estate: In BC, the default legal presumption is tenancy in common, unless the property title explicitly states joint tenancy.
So, if your property title doesn’t mention joint tenancy, it’s likely you own it as tenants in common, even if you assumed otherwise. This is why it’s so important to review your title with a legal professional.
The Right of Survivorship and Estate Planning
One of the major reasons people choose joint tenancy is to make estate administration easier. When property transfers automatically upon death, there’s no need for the estate to apply for probate (which can be time-consuming and costly).
This can be a good estate planning tool, but only if it fits your overall goals. In some cases, joint tenancy may not be appropriate. Especially when it might cause disputes among children, bypass intended beneficiaries, or result in tax complications.
When used properly, joint tenancy can:
- Minimize probate fees
- Ensure assets pass quickly to a surviving spouse
- Protect against estate litigation or challenges
- Simplify the transition of homeownership
But when used without full understanding or legal advice, it can create confusion, disputes, or unintended consequences.
Joint Tenancy Can Be Severed
Let’s get back to the previously mentioned one often-overlooked fact about joint tenancy. It’s not fixed or permanent. Any joint tenant has the legal right to sever the joint tenancy, even without telling the other party. This converts the ownership into tenancy in common, eliminating the right of survivorship.
This change can have major implications. Especially if done in secret or in the context of a relationship breakdown. Suddenly, what you thought would automatically transfer to a loved one could now become part of someone’s estate and subject to wills, debt claims, or other legal matters.
Why It Matters to Review Your Ownership Now
If you’re already a property owner, now is the time to check how your property is registered. Even if you’ve owned it for years, or purchased it with someone you trust, it’s worth confirming the legal structure of ownership. Especially if your life circumstances have changed.
Marriage, divorce, children, aging parents, business partnerships, or changes in your estate plan are all good reasons to revisit your property title and confirm it aligns with your current wishes.
Call Carter Notary Today
At Carter Notary, we help individuals, couples, and families make informed decisions about property ownership. Whether you’re in the process of buying or already own property, we can help you:
- Review your current property title and ownership structure
- Explain the legal and estate implications of joint tenancy vs. tenancy in common
- Make updates to your ownership to reflect your current goals
- Ensure your estate plan and property title are working together
Don’t leave it to chance. A simple review today could save your loved ones time, stress, and expense in the future.
Contact Carter Notary Today to review how your property is owned and ensure there are no hidden title issues that could affect your estate or your loved ones.