Navigating the complexities of co-ownership of property in Ontario can be a daunting task. There are two types of co-ownership in Ontario, Tenants-In-Common and Joint Tenants. Understanding the differences between these options is important for anyone looking to invest in property with others. Let us break down the intricacies of co-ownership in Ontario to help you make an informed decision that aligns with your personal and financial goals.

Tenants-In-Common Co-Ownership

Tenants-in-common, also referred to as TIC, exist when at least two parties own an equal share of the property, home, or mortgage. Tenants-in-common do not have a “right of survivorship,” meaning that when a tenant-in-common dies, their share of the property passes to their estate and a beneficiary. The remaining tenants do not receive any additional interest in the property, unless they become a beneficiary of the deceased tenant. In general, each tenant can sell or borrow against their portion of ownership independently from the other tenants.

Ending a Tenancy-in-Common: Buyout and Court Proceedings

A tenancy-in-common may end when one of the tenants buys out the other member(s) of the tenancy. A tenancy-in-common can also end through the court system where a judge or adjudicator may force a tenant to be bought out by the other tenant(s).

Joint Tenants Co-Ownership

Joint tenants exist when two or more people own a property with equal rights and obligations. Joint tenants is a common type of home ownership between spouses. Generally, this type of ownership does create a “right of survivorship,” meaning that when one of the parties dies, the other party assumes full ownership of the property. Joint tenants are usually required to obtain ownership at the same time.

Terminating Joint Tenancy: Voluntary Agreements and Conveyance

Joint tenancy can end when the parties enter into a voluntary agreement. A joint tenant can convey their share of the property to a third party; however, this converts the ownership to a tenancy-in-common for the remaining owner and the third party.

Choosing between Tenants-In-Common (TIC) and Joint Tenants for property co-ownership in Ontario can be a confusing and critical decision. Brown Beattie O’Donovan LLP’s experienced professionals will ensure you make an informed decision, offering peace of mind in your real estate investments and co-ownership arrangements.

For more information about buying a home or the real estate process, contact the experts at Brown Beattie O’Donovan LLP.