What tenants in common means in Canadian property ownership and how it differs from joint tenancy.
Tenants in common is a form of co-ownership in which each owner holds an undivided interest in the property, but without the automatic right of survivorship that defines joint tenancy.
This ownership form matters because it changes what happens to an owner’s interest on death and can offer more flexibility in how co-owners structure their shares.
Ontario government guidance explains that if a tenant-in-common co-owner dies, that interest does not automatically pass to the other co-owners. Instead, it generally becomes part of the deceased owner’s estate.
For mortgage borrowers, tenants in common often comes up in family purchases, friend co-ownership arrangements, and estate-planning conversations where co-owners do not want survivorship to control the result.
Two siblings buy a property together and take title as tenants in common. If one dies, that person’s interest would generally pass through the estate rather than automatically to the other sibling.
Tenants in common does not mean the owners use different parts of the property physically. It describes the ownership structure, not which bedroom or floor belongs to whom.
Borrowers also sometimes assume tenants in common is only for investors. It can also be used by family members and other co-buyers who want a structure different from joint tenancy.
The legal and estate consequences of co-ownership are significant and province-sensitive. Borrowers should get legal advice before deciding how title should be registered.