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Buying a home is very exciting and it can also be stressful. Whether you are buying it by yourself, with a partner, or a parent, there are lots of things to consider. One important consideration is how you are described on the title to your property, particularly when you purchase a home with another person.

How you are described on title has legal implications. There are two main types of ownership: Joint Tenancy and Tenancy-in-Common. Both types of ownership have impacts on your interest in the property and your personal estate plan.

When two or more individuals own real property as joint tenants, they both own 100% of the asset together. They have equal rights and interests in the property.

In joint tenancy ownership, when the first owner dies, the survivor has the Right of Survivorship. This means, the deceased’s interest in the property automatically transfers to the surviving owner. The deceased’s name can be removed from title without having to obtain a Grant of Probate or Grant of Administration. The surviving owner provides information on the deceased’s death to the Alberta Land Titles Office and their name will be removed from the title.

Another option is to own the property as tenants-in-common. This means each owner owns their respective share in the property. People can own different (and unequal) percentages in a property. When one owner dies, the surviving owner(s) does NOT have the Right of Survivorship. Rather, the deceased owner’s interest passes to their estate and may be distributed in accordance with their Last Will (or if they die without a Will, the rules of intestacy will apply).

This form of ownership is commonly used when the property is purchased for investment purposes (i.e. a rental property). The expenses and income related to the property can be shared according to the percentage of ownership.

Take caution, if the land title does not specify the nature of the ownership (joint tenancy or tenancy-in-common), then the property is presumed to be owned as tenants-in-common and will be registered accordingly. It is very important to ensure you confirm how you and the other owner(s) wish to own the property.

There are pros and cons to each form of ownership. If you are purchasing property, talk to a lawyer about the different ownership options and how they will impact your estate plan.