Joint vs. Tenants in Common
In the dynamic real estate landscape of Greater Victoria and Nanaimo, when multiple individuals decide to purchase property, understanding the difference between Joint Tenancy and Tenants in Common becomes crucial. Infinity Law, a leading name in Real Estate Law, sheds light on these concepts to empower property buyers in the region.
Understanding Joint Tenancy:
Joint Tenancy is a prevalent method for multiple buyers to hold property title in British Columbia. In this arrangement, each owner's name is registered at British Columbia’s Land Titles Office, with each deemed to own an "undivided share" of the property. Essentially, all owners collectively possess the property without distinct divisions. The unique feature of Joint Tenancy is the "right of survivorship." When one owner passes away, their share is automatically transferred to the surviving co-owners. This mechanism can be a strategic tool in estate planning, potentially reducing probate fees.
Diving into Tenants in Common:
Contrasting Joint Tenancy, Tenants in Common allows distinct ownership portions within a property. These portions can vary based on the agreement among the owners. For instance, three investors might have different shares like 50/100th, 25/100th, and 25/100th based on their contributions. The pivotal difference is that, upon an owner's demise, their share doesn't transfer to the co-owners but instead passes to their estate, and subsequently to beneficiaries designated in their will.
Given the stark differences between these two forms of ownership, it's imperative to make an informed decision. If you're considering purchasing property in Greater Victoria or Nanaimo, consult with Infinity Law. Our expert team will guide you in choosing the ownership type that aligns best with your objectives.