What is Co-Ownership?

Co-ownership is when two or more individuals buy or inherit a home or other real property together. For example, three siblings inheriting their parents' cottage property after their death or an unmarried couple purchasing a condo together. Problems can arise when it comes to co-ownership of property, regarding things such as possession and cost-sharing, depending on the nature of the relationship of the individuals. If all the individuals involved want to be registered owners of the property, they will all need to decide whether they will have a registered ownership as joint tenants or as tenants in common.

What is a Joint Tenancy?

A joint tenancy is used when the individuals want to have a right of survivorship. This means that if one of them should die, the remaining individuals will remain full owners of the property. A joint tenancy is typically used in estate planning by spouses for their matrimonial home, ensuring that if one of them passes away, the remaining spouse will automatically obtain sole ownership of the home.

What is a Tenancy in Common?

A tenancy in common is used in situations where ownership is broken down into percentages per owner. This means each individual owns their own share of the property and therefore, if one of them should die, that deceased owners share becomes part of their estate and will be distributed accordingly, it does not automatically divide between the surviving owners. Examples of using a tenancy in common includes unmarried couples buying and sharing the use of a home or when business partners buy property for investment purposes.

When it comes to using a tenancy in common, having a comprehensive co-ownership agreement is key to ensuring procedures and safeguards are in place regarding situations such as liability, events of default, purchase and sale of ownership, and death of a tenant in common. As each co-owner will have differing needs, wants and interest, it is vital that each co-owner have separate legal representation to ensure a fair drafting and negotiation process.

Connect With Suzanne Desrosiers Professional Corporation

If, for some reason ownership has not been designated between co-owners as either joint tenants or tenants in common, legislation has established that owners will be deemed to be tenants in common. To avoid any ambiguities of ownership or if you have any questions about co-ownership, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!