Buying Real Estate Jointly in Toronto: Guide for Couples, Families & Partners

Joint Ownership of Toronto Real Estate: Joint Tenancy vs. Tenants in Common Explained

Purchasing real estate in Toronto with another person — a spouse, partner, family member, or investment co-owner — raises an important legal question that many buyers overlook: how should the property be held? In Ontario, co-owners have two options for how title is registered: joint tenancy and tenants in common. The choice between them has significant implications for what happens to the property if one owner dies, how ownership shares are structured, and how the property can be dealt with in the future. This guide explains the key differences, when each structure is appropriate, and what to discuss with your lawyer before closing.

Joint Tenancy

In a joint tenancy, two or more owners hold the property together with equal, undivided shares and — critically — the right of survivorship. The right of survivorship means that when one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s), outside of the deceased's estate and regardless of what the will says. This transfer happens by operation of law, without probate.

Joint tenancy requires that all four "unities" be present at the time of purchase: unity of time (owners acquired their interest at the same time), unity of title (from the same instrument), unity of interest (equal shares), and unity of possession (equal right to the whole property). If any of these unities is absent or broken, the tenancy is converted to a tenants in common structure — a process called "severance."

When Joint Tenancy Is Appropriate

Joint tenancy is the standard structure for spouses and common-law partners purchasing their primary residence together. The right of survivorship ensures that the surviving spouse automatically becomes the sole owner without the delays, costs, and publicity of probate — a significant practical advantage in a time of grief. For couples whose estate planning intent is for the property to pass to the surviving partner, joint tenancy achieves this result efficiently.

Tenants in Common

In a tenants in common arrangement, two or more owners each hold a defined, separate share of the property — which may be equal or unequal — and each owner's share can be independently dealt with: sold, mortgaged (in some circumstances), gifted, or left by will. There is no right of survivorship — when a tenant in common dies, their share passes according to their will (or the rules of intestacy if they die without a will), not automatically to the co-owner.

When Tenants in Common Is Appropriate

Tenants in common is often the right structure for investment co-ownership, particularly between non-spouses or between family members with unequal financial contributions. It allows each owner to hold a proportionate share reflecting their capital contribution — one owner might hold 60% and the other 40%, for example — and to direct their share independently in their estate planning. It is also commonly used when co-owners want to keep their ownership shares separate for tax or estate planning purposes.

Key Differences at a Glance

Co-Ownership Agreements

Regardless of which title structure you choose, any co-ownership arrangement between non-spouses should be governed by a written co-ownership agreement — a legal contract between the co-owners that addresses what happens if one owner wants to sell, how ongoing expenses (mortgage, taxes, maintenance) are split, what happens on relationship breakdown, and the process for resolving disputes. Without an agreement, co-owners who disagree about what to do with the property may end up in a costly and drawn-out legal partition application. A properly drafted co-ownership agreement prevents most of these problems before they arise.

Frequently Asked Questions

Can joint tenancy be converted to tenants in common?

Yes — a joint tenancy can be "severed" and converted to a tenants in common arrangement. Severance can occur unilaterally by one joint tenant in some circumstances (by transferring their interest to themselves or another party, which breaks the unity of title) or by mutual agreement of all joint tenants. The legal process for severance should be handled by a real estate lawyer. Once severed, the tenancy cannot automatically revert to joint tenancy — it requires a new instrument.

What happens if one co-owner wants to sell but the other doesn't?

Without a co-ownership agreement governing the process, a co-owner who wants to sell but cannot reach agreement with the other owner can apply to the court for a partition and sale — a legal process that can compel the sale of the property or the buyout of one owner's interest. This is expensive, slow, and acrimonious. A well-drafted co-ownership agreement provides a contractual mechanism for these situations that avoids court entirely.

Does the ownership structure affect our mortgage?

Generally, both owners are jointly and severally liable on the mortgage regardless of whether title is held as joint tenants or tenants in common — meaning the lender can pursue either borrower for the full amount if there's a default. The title structure doesn't change the mortgage obligation between the lender and borrowers. However, it can affect how each owner's share of the property is treated for tax, estate, and separation purposes.

This guide is for general informational purposes and does not constitute legal or tax advice. The appropriate ownership structure for your specific situation depends on your personal, financial, and estate planning circumstances — always consult a licensed real estate lawyer and, where appropriate, a tax advisor before making this decision.

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Frank Merigliano, Team Leader / Sales Representative, VIP Condos Toronto, RE/MAX PREMIER INTERNATIONAL INC., Brokerage — licensed since 1993, with RE/MAX since 1995, and a Top 50 RE/MAX team in Canada since 2015.