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Tenancy in common is a form of co-ownership in which two or more owners each hold a distinct, individual share of a property — equal or unequal — with no right of survivorship, meaning each owner's share passes through their estate rather than automatically to the other owners.
Unlike a joint tenancy, tenants in common can hold unequal ownership percentages that reflect different capital contributions, and each owner can independently sell, mortgage, or will their own share without needing the other owners' consent. Critically, there's no automatic right of survivorship: on death, a tenant in common's share passes through their will or estate, not to the surviving co-owners.
This structure is common among unrelated co-buyers, investment partners, or family members contributing different amounts to a purchase. Even with unequal shares, a lender typically still requires every tenant in common to sign the mortgage as a co-borrower, since the charge registers against the whole property; brokers should flag the estate-planning difference from joint tenancy to clients weighing which structure to use.
Unequal shares allowed: unlike joint tenancy, tenants in common can hold different percentage interests in the same property, reflecting different capital contributions.
No right of survivorship: on death, a tenant in common's share passes through their will or estate, not automatically to the surviving co-owners.
Common for unrelated co-buyers: this structure is frequently used by investment partners, friends, or family members who want their individual share to go to their own heirs.
Mortgage still covers the whole property: even with unequal ownership shares, the lender typically requires all tenants in common to sign the mortgage as co-borrowers, since the charge registers against the entire property.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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