| Quick Answer:
In British Columbia, Joint Tenancy includes the “Right of Survivorship,” meaning if one owner dies, the property passes automatically to the survivor, bypassing probate. Tenancy in Common allows owners to hold separate shares (e.g., 60/40) and leave their share to anyone in their Will, but it requires the probate process. |
Rights of Survivorship and Property Ownership BC
In British Columbia, property co-ownership is primarily structured in two ways: Joint Tenancy or Tenancy in Common. Choosing the correct structure is a critical component of estate planning and real estate law in BC.
- Joint Tenancy includes the “Right of Survivorship.” When one owner passes away, their interest in the property automatically transfers to the surviving owner(s). This transfer happens outside of the deceased’s estate, meaning the property does not form part of the estate for probate purposes.
- Tenancy in Common allows two or more people to hold defined shares of a property (e.g., 50/50 or 70/30). There is no right of survivorship. When a tenant in common dies, their specific share passes into their estate and is distributed according to their Will or BC’s intestacy laws.
Benefits of Joint Tenancy: Reduced Probate Fees
For many residents in Vancouver, joint tenancy is used to minimize the cost of passing assets to a spouse or partner. Because the property passes by right of survivorship, it generally bypasses the probate process.
In 2026, BC probate fees remain tiered:
- $0 on the first $25,000 of estate value.
- 0.6% on value between $25,000 and $50,000.
- 1.4% on all value exceeding $50,000.
For a property valued at $1,500,000, holding the title in joint tenancy can save the surviving owner approximately $21,000 in probate fees and avoid the 6–12 month wait for a Grant of Probate from the Vancouver Probate Registry.
Benefits of Tenancy in Common: Flexibility
While joint tenancy offers tax advantages, it lacks flexibility. Tenancy in common is often the preferred choice for business partners, friends buying together, or individuals in “blended families” who wish to ensure their children from a previous relationship inherit their share of the home.
Under Section 11 of the Property Law Act, if a title transfer does not specify the type of ownership, BC law presumes the owners are Tenants in Common. This ensures that owners retain control over their equity through their Will, though it does mean the share will be subject to probate and estate administration.
Resulting Trusts and Joint Tenancy with Adult Children
A common legal trap in British Columbia involves parents adding an adult child to a property title as a joint tenant. Under BC case law (following the Pecore v. Pecore decision), the court often presumes that the child holds the property in a Resulting Trust for the parent’s estate.
Unless there is documented evidence of “gifted intent” at the time of the transfer, the child may not receive the property via survivorship. Instead, they may be legally required to return the asset to the estate to be shared among all beneficiaries. It is vital to obtain independent legal advice before adding family members to a land title.
BC Land Owner Transparency Registry (LOTR) Filings
Any change to property title in BC—including switching from joint tenants to tenants in common—now requires a filing with the Land Owner Transparency Registry (LOTR). This registry tracks “reporting bodies” and “interest holders” to ensure transparency in BC real estate. Failing to file an accurate Transparency Declaration can result in significant administrative penalties.
Severance of Joint Tenancy in British Columbia
A joint tenancy can be “severed” by any owner at any time without the consent of the other owners. By registering a transfer at the Land Title and Survey Authority of BC (LTSA), an owner can convert the joint tenancy into a tenancy in common. This is a common strategy during marriage breakdowns or when an owner decides they wish to leave their portion of the equity to someone other than the co-owner.
Co-Ownership Agreements for BC Real Estate
To prevent disputes, co-owners should execute a formal agreement. This document is essential regardless of the title structure and should address:
- Proportions of responsibility for mortgage payments, property taxes, and maintenance.
- The procedure if one owner wishes to sell their interest (Right of First Refusal).
- How the property will be valued in the event of a buyout.
- Debt obligations and what happens if one owner defaults on their portion of the expenses.
Legal Advice for Property Owners in Vancouver
The lawyers at Munro & Crawford have served the Kerrisdale community and the greater Vancouver area for decades. Whether you are purchasing a new home or updating your estate plan, we provide the local expertise required to protect your real estate assets.
Frequently Asked Questions (FAQ)
What is the 5-Day Survivorship Rule in BC?
Under Section 10 of the Wills, Estates and Succession Act (WESA), a person must survive the deceased by at least five days to inherit. For joint tenants, if both die within five days of each other, the law treats the property as a tenancy in common, and each owner's share goes to their respective estates.
Can a creditor seize my share of a joint tenancy?
Yes. If a judgment is registered against one joint tenant, the creditor can apply to the court to have the joint tenancy severed and the debtor’s interest sold to satisfy the debt.
Do I pay Property Transfer Tax (PTT) when switching ownership types?
In many cases, transfers between family members or changes that do not alter the beneficial interest may be exempt, but this is highly fact-specific. It is important to consult a lawyer to determine if a PTT return is required.
What happens if I die without a Will as a Tenant in Common?
If you hold property as a tenant in common and die without a Will, your share will be distributed according to BC’s intestacy rules under WESA. This often results in the property being split between a spouse and children in a way the owner might not have intended.
How do I check how my property is currently held?
You can perform a State of Title Certificate search through the LTSA. This will show whether you are registered as "Joint Tenants" or if no designation is listed (which defaults to Tenancy in Common).
