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There are multiple ways a person can own property in Manitoba, with the most common being Joint Tenancy or a Tenancy in Common.
These forms of ownership are fundamentally different and there are different implications for each form, depending on each person’s situation. It is important that a landowner knows what form of ownership they have and the benefits and consequences that stem from said ownership.
Joint Tenancy
Joint Tenancies are the most common form of ownership in Manitoba. When someone has a Joint Tenancy, they own 100% of the property. Joint Tenancies can be owned by multiple people and thus when multiple people own a single property as a Joint Tenancy, they all own 100% of the property. What this means practically speaking is that all owners are entitled to all the benefits and consequences of owning the property. For example, if the property was being rented then the rental income has to be shared equally.
What is unique about a Joint Tenancy is that if one of the owners of the Joint Tenancy passes away then the land does not form part of their estate. Instead, their name is removed from the title and whoever remains on title keeps the property. This is referred to as the right of survivorship.
Joint Tenancies are most common for couples who wish to own a house together as equals and wish for the house to be transferred to their significant other once they pass away. Because the house does not form part of their estate, there is no need for the Will to go to Probate court before the house can be transferred into the remaining owner’s name, which can save time and money.
Tenancy in Common
A Tenancy in Common is an ownership structure in land where multiple parties own a percentage. For example, Jane and John could have a Tenancy in Common where Jane owns 75% of the land and John the remaining 25%. What this means practically speaking is that each can only receive the percentage benefits or consequences for the percentage of land that they own. For example, if Jane and John rented the land out Jane would receive 75% of the rent and John 25%.
A Tenancy in Common also differs from a Joint Tenancy as there is no right of survivorship. Because each party owns a specific percentage point of land, they can devise it or gift it to someone through their estate. A Joint Tenancy can be transferred into a Tenancy in Common at any time and you do not need the consent of the other owners.
Tenancy in Common are most often used by people who own land together as business partners or the land was inherited. For example, if Joe left his children Jane and John his house in his will, they may choose to receive ownership as a Tenancy in Common. They would do this to ensure their ownership of the house could be left in their Will to their own beneficiaries someday.
Conclusion
This article outlines Joint Tenancies and Tenancies in Common with each having their own beneficial uses for a property owner. It is important for all landowners to know what form of ownership they have on their land. If a reader wishes to know what form of ownership they have on their land, they should contact our office and one of our lawyers would be happy to help.