Joint tenants or tenants in common in Nova scotia - what’s right for you?

/ Highlander Law Group/

In Nova Scotia, when you acquire real property (land), there are two main options for how you want to hold “title” if more than one person is to own a property. Joint tenants and Tenants in Common.

JOINT TENANTS HAVE AN AUTOMATIC RIGHT OF SURVIORSHIP

Joint tenants : you own the whole thing together. “Shares” are just a portion of the value, no actual percentages or shares exist. One of the main differences is that for joint tenants if one person should pass away the remaining owners inherit that value automatically. No need for the estate to go through the Probate** process. This is the most common choice for spouses and certain family arrangements.

TENANTS IN COMMON JUST OWN A SPECIFIC SHARE OF THE PROPERTY

Tenants in common: this is when each person owns a specific share of the value. When you acquire the property, you determine what percentage. Each share belongs to each person separately and can be transferred on its own, without consent of the other owners. In the event that the owner in a tenants-in-common situation should pass away their, estate must go through the Probate** process and their “share” will be transferred through their estate. This is more common for ownership for those in business together or other less close relationships. In Nova Scotia, this is a common way for the family cottage to be owned where each person wants their own children to inherit their share.

TENANT IN COMMON IS THE DEFAULT MANURE OF TENURE IF NOT OTHERWISE INDICATED

It’s important to understand that the default ownership structure, in Nova Scotia, is ‘Tenant in Common’. If you intend to own property equally with another person(s), double check that the deed you are receiving clearly states that you are taking title as ‘Joint Tenants, not Tenants In Common’.

USE A QUIT CLAIM DEED TO SWITCH BETWEEN JOINT TENANTS AND TENANTS IN COMMON

In Nova Scotia, if you do not want to hold your property in the present manner of tenure, one option is to use a Quit Claim Deed to switch between Joint Tenancy and Tenants in Common. This can be helpful if one party wants to sell their interest in a jointly owned property, but the other owner does not or if the owners want to make sure the entire property goes to the surviving owner.

**To learn more about the Probate Process, check out our other blogs:

By: Briana C. O’Grady

Have Questions For Us?:

If you have any questions about an issue with a property in Nova Scotia process, you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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