There are two ways that two or more people can hold title to real estate: as joint tenants and as tenants in common. It is important to understand the benefits of each to make sure you hold your property in the way that is most advantageous to you.
Joint Tenancy
Joint tenancy is how most real estate lawyers suggest married couples hold title to their house. A major advantage to joint tenancy is that if one person dies, the survivor takes exclusive title. Suppose John and Jane are married and own a house together as joint tenants. One day John dies. Because John and Jane held the property as joint tenants, Jane becomes the exclusive owner of the house.
Joint tenancy also helps people avoid probate taxes (around 1.5%) that would otherwise apply. When John dies, probate taxes will apply to his estate. However, since John held the house as a joint tenant, the house never enters his estate and instead transfers to Jane, saving thousands of dollars in probate fees.
Tenants in Common
Tenants in common is how most estate lawyers suggest people hold property in business arrangements or wherever people want the property to go to someone other than the person on title with them.
Suppose John and Jane are just business partners in this scenario and own commercial property as tenants in common, each holding 50%. If John dies in this scenario his 50% does not automatically go to Jane, rather it enters his estate and is distributed according to his will. In his will, John left all of his estate to his son Jeff. So in this case, Jeff and Jane would each end up holding a 50% share in the property.
Conclusion
When buying a property there is no absolute right answer on how to hold title. Both joint tenancy and tenancy in common have their own unique advantages. Ultimately you need to choose based on what suits your needs. If you are unsure about how you should hold your property, talk to your real estate lawyer about what is best for you.
If you are in Ontario, I would strongly recommend to visit http://www.axesslaw.com/ for your real estate legal needs.