When two or more people buy a property together in British Columbia, one critical decision is how the property title is held. The two most common forms of co-ownership are joint tenancy and tenancy in common, and the choice can have long term legal and financial consequences. Understanding the difference before you purchase can help avoid confusion, disputes, and unintended outcomes later.
What Is Joint Tenancy?
With joint tenancy, all owners hold the property together as a single unit. Each owner has an equal interest in the property and equal rights to use it. The defining feature of joint tenancy is the right of survivorship. If one owner passes away, their share automatically transfers to the surviving owner(s).Joint tenancy is commonly used by:
- Spouses or long term partners
- Buyers who want a simple transfer of ownership upon death
However, joint tenancy does not allow for unequal ownership shares, and one owner cannot leave their portion of the property to someone else through a will.
What Is Tenancy in Common?
With tenancy in common, each owner holds a separate share of the property. These shares can be equal or unequal. For example, 50/50 or 70/30 depending on how the buyers choose to structure ownership. Unlike joint tenancy, there is no right of survivorship. If one owner dies, their share becomes part of their estate and is distributed according to their will or BC intestacy laws.Tenancy in common is often used when:
- Owners contribute different amounts toward the purchase
- Buyers want control over who inherits their share
- The property is an investment or owned with friends, siblings, or business partners
Each owner can generally sell, transfer, or mortgage their share independently.
