If you're buying alone, it doesn't come up. If you're buying with a spouse, a partner, a friend or a family member, the answer decides what happens to your share of the home if one of you dies. Here's how the two options work in British Columbia.
Joint tenancy: the survivor takes it all
Joint tenancy is a form of co-ownership where each owner has an equal interest and an equal right to the whole property. Its defining feature is the right of survivorship: when one joint tenant dies, their interest passes to the surviving joint tenant(s), not to their estate. Because of that, joint tenancy is the usual choice for spouses who want the home to stay with the surviving partner.
When a joint tenant passes away, the survivor updates the title with the Land Title and Survey Authority (LTSA). LTSA offers an online application for individual owners, verified through the BC Services Card app, and it needs original government-issued documents such as a death certificate (photocopies and funeral director's certificates aren't accepted). LTSA says most of these applications are registered within 10 to 15 business days.
Tenancy in common: your share goes to your estate
With tenancy in common, each owner holds their own share, and when one dies, their share goes to their heirs under their will or estate, not to the other owners. Shares don't have to be equal: two buyers could own 60/40 or 75/25 to match what each put in. That makes tenancy in common a common choice for friends, siblings or relatives buying together, investors, and couples who each want to leave their share to their own children.
How to tell which one you have
In BC, joint tenancy has to be stated on the transfer document and on the title. If your title doesn't say joint tenants, the owners hold as tenants in common. You can check by getting a copy of your title.
Pros and cons at a glance
Joint tenancy
- Pro: the home passes to the surviving owner without waiting on the estate.
- Pro: the title update after a death is a relatively simple LTSA application.
- Con: you can't leave your interest to anyone else in your will while the joint tenancy stands.
- Con: ownership is equal, even if one person paid more.
Tenancy in common
- Pro: each owner decides who inherits their share.
- Pro: shares can reflect what each person contributed.
- Con: when an owner dies, their share goes through their estate, which can take longer and may leave the surviving co-owner sharing the home with the heirs.
- Con: without a written agreement, co-owners can end up in disputes about selling or buying each other out.
A word about adding adult children to title
Some parents think about adding an adult child to their home's title as joint tenants so the house passes to them directly. It can seem simple, but it has real trade-offs: once your child is on title, you generally need their signature to sell or refinance, and their own life events can affect the property. There can be tax consequences too. Talk to a lawyer and an accountant before you do it.
Questions to ask your lawyer or notary
- Which form of ownership fits our relationship and our wills?
- Should our shares be equal or reflect what each of us is contributing?
- Do we need a co-ownership agreement covering what happens if one of us wants to sell?
- What happens to the home if one of us passes away, and how long would that take?
- Are there tax issues we should check with an accountant?
The bottom line
Neither option is better across the board. Joint tenancy keeps things simple for many couples; tenancy in common gives each owner control over their own share. The right choice depends on your relationship, your estate plans and how you're splitting the purchase, and it's a conversation to have with your lawyer or notary before completion, not on signing day.
Buying a home in Vernon or the North Okanagan with someone? Call or text Sean Phillips, REALTOR® with Coldwell Banker Executives Realty, at 236-599-5898, and see getting ready to buy for the rest of the plan.
This article is general information, not legal or tax advice. Talk to a lawyer, notary or accountant about your situation.