There are two forms of joint ownership available to those purchasing real property in BC: joint tenancy and tenancy in common.

Joint tenancy is where all of the registered owners own 100% of the property and each owner enjoys a right of survivorship. When one owner passes away, their share automatically transfers to the surviving joint tenants (probate-free).

On the other hand, the registered owners in a tenancy in common scenario each own an undivided share (or set percentage) of the property. The shares need not be equal but they must add up to 100%. In this case, when one owner passes away, their share will form part of their probatable estate and pass to the beneficiaries of their estate (as opposed to the surviving joint owners).

Although it is possible to switch from one form of joint ownership to the other years after acquisition (it is even possible for a joint tenancy to be severed unilaterally by one joint tenant without the knowledge or consent of the other joint tenants), it is important to thoughtfully consider which form is best at the time of the initial registration because the different forms will yield very different outcomes when it comes to planning one’s estate.

Want to know more? Call or email us today!

This article is intended for information purposes only and should not be taken as the provision of legal advice. Grace C. Cleveland is a lawyer with the law firm of Cleveland Doan LLP and can be reached at (604)536-5002 or grace@clevelanddoan.com.