Joint Tenancy

Joint tenancy is a form of co-ownership in which two or more people hold title to the same property together, and when one owner dies, that owner's share passes automatically to the surviving owner or owners instead of to the deceased person's estate. This automatic transfer is called the right of survivorship.

How Joint Tenancy Works in Canada

To create a joint tenancy, owners generally must take title at the same time, by the same document, with equal shares and the same interest in the property. Provincial land registry systems record the owners' names on title. Because survivorship operates on death, the deceased owner's share typically avoids probate and does not flow through their will, although the property may still be considered when settling debts or claims against the estate. Rules differ by province, so the specific mechanics depend on where the property is located.

The main alternative is tenancy in common, in which each owner holds a distinct, identifiable share. A tenant in common can leave that share to whomever they choose, and the share forms part of their estate.

Why It Matters for a Mortgage

Lenders care about who is on title and who is obligated on the mortgage. It is common for every owner on title to also sign as a borrower or co-borrower, which usually makes each person jointly and severally liable for the full debt. That means the surviving joint tenant typically takes the property subject to the existing mortgage, and the lender is not obliged to release the debt or remove a name simply because an owner has died.

• Survivorship: the last surviving joint tenant owns the whole property.
• Tenancy in common: shares pass through the estate, not automatically.
• Severance: one owner transferring their share to themselves can end the joint tenancy.
• Unequal contributions: survivorship applies regardless of who paid what, which is a common source of family disputes.

Adding an adult child to title as a joint tenant is sometimes considered for estate planning, but it can trigger a deemed disposition for tax purposes unless an exemption such as the principal residence exemption applies. Tax and estate outcomes should be reviewed with a qualified professional.

Worked Example

Two partners buy a home together and are registered as joint tenants on title. One partner dies. The surviving partner's name remains on title and they become the sole owner by operation of survivorship, without the property passing through the deceased partner's estate. By contrast, if the same couple had taken title as tenants in common, the deceased partner's share would go to their estate and be distributed according to their will or provincial intestacy rules.