Joint Tenancy or Tenants in Common?
A fundamental decision that every purchaser must make if he or she is buying real estate property jointly with another person is the manner in which they wish to assume title. The decision will affect succession rights pertaining to the owner’s share of the property.
Joint Tenants
When two or more persons assume title as joint tenants, it affects their share in case of death. If one of the joint tenants dies, his share will pass automatically to the surviving joint tenants. This type of registered ownership precludes the share owned by the deceased from his estate and will not be affected by a testament (will) left by the deceased. The share held by the deceased is deemed to have passed to the surviving joint tenants. Once a joint tenants dies, the surviving tenant is required to register an application of survivorship asking the land registrar to remove the deceased tenant off title.
Tenants in Common
Tenants in common is the clear alternative to joint tenancy. Tenants in common will usually designate their share on title by indicating the percentage of ownership (e.g. 50% – 50%), The share owned by the deceased will be conveyed to his estate and to a beneficiary of his choice pursuant to a will or pursuant to statute if the owner died intestate (without a will). Transfer of property pursuant to a will will leave the property at the hands of the estate trustee to follow the instructions of the will.