There's more than one way to be registered on the title to a property. If you're purchasing jointly with another person (or maybe several people), you'll be asked whether you want to purchase as joint tenants or tenants in common. But do you know the difference between the two?

Joint tenants means that all owners hold the property jointly with each other. When one owner dies, their share is transferred to the surviving owner(s). This is the most common form of ownership for spouses, but can be used by anyone who wishes to adopt a "survivor takes all" approach to the ownership of the property. It also provides some protection that neither owner can be left owning part of a property with someone other than the person they acquired it with.

Tenants in common means that each owner holds their own individual share of the property, which they can sell or dispose of independently of the other owners. It can be transferred, sold, or left in a will without the consent (or sometimes even the knowledge) of the other owners. This form of ownership is more common in business transactions. For example, two business partners might own a property as tenants in common because upon their death, each party wishes to leave their share in the property to their family, rather than their business partner. This type of holding also allows you to hold property in different proportions from other owners, for example joint tenant might own 40% of the property and the other 60%.

Although not a rule, if you're part of a couple that owns property jointly, you most likely hold it as joint tenants; typically business or other non-couple property owners (e.g. parents and children, brothers and sisters, friends, etc.) will own as tenants in common. If you're not sure and need to check, have a look at your title (if you hold it), or otherwise request a title search from me (at a cost of about $20) which will provide this and other valuable information. 

It is worth considering all possible outcomes if you are acquiring a property or reviewing your will and may be leaving a property jointly between various parties who may have diverging interests in the future, for example your spouse and children. Please contact me to discuss these matters further before proceeding.

To make matters more complex, read on...

It is possible to have both joint tenants and tenants in common jointly owning one property. To understand the possible outcomes of this, let's use a family structure most of us probably know well as an example. Homer and Marge Simpson own 50% of a property as joint tenants with each other, but the other 50% is owned by Ned Flanders, a tenant in common with them. 

When Homer inevitably dies first, Marge will take Homer's share, but when Marge dies, her share will be divided between Bart, Lisa and Maggie. Homer and Marge have little control over who ends up with Ned's share, other than discussions with their joint owner and agreement between the parties. 

Ned can sell his share (maybe to Clancy Wiggum), or he can leave it in his will (probably to Rod and Todd), or he might even give it away during his lifetime (he seems quite fond of Reverend Lovejoy and I'm sure this fictitious property would be welcomed by the church). 

Although unlikely in practice as properties are generally sold before reaching this point, you can see how the property could end up with potentially five or more owners (Rod and Todd / Clancy Wiggum / Reverend Lovejoy / the church, Bart, Lisa and Maggie), all of whom will have very different ideas about what to do with the property. You can see how it can be vital to think through all the possible scenarios before determining how a property is to be held.

If you're not a big reader, here's a diagram to simplify the difference between tenants in common and joint tenants: