Owning property with someone else in Toronto can offer shared opportunities but also potential risks. If the property is held as a joint tenancy, when one of the owners passes away, their interest automatically transfers to the surviving owner through the right of survivorship. However, if one co-owner decides they no longer want that automatic transfer to happen, it becomes essential to consult a real estate lawyer in Toronto. A lawyer can help you understand how to convert a joint tenancy into a tenancy in common, giving each owner control over their share of the property.

Joint Tenancy vs. Tenants in Common: Why the Distinction Matters

In Ontario real estate law, co-owners can hold property as either joint tenants or tenants in common, and each structure carries very different legal consequences. Under joint tenancy, all owners have identical interests acquired at the same time, and the right of survivorship ensures that when one owner dies, the others automatically inherit their share. In contrast, under a tenancy in common, each co-owner holds a distinct share that can be passed on through a will or estate after death.

If your circumstances change whether due to separation, estate planning, or a desire to leave your portion to someone else a real estate lawyer in Toronto can assist in properly transitioning your ownership structure to reflect your current intentions.

How to Effect a Severance of Joint Tenancy

Under Ontario law, there are several recognized ways to sever a joint tenancy. One option is for a co-owner to unilaterally transfer their interest, either to themselves or to another person. This single act can sever the joint tenancy without requiring consent from the other owner. Another way is through a mutual written agreement between all co-owners, confirming that they wish to hold the property as tenants in common. Finally, a joint tenancy can be severed through a clear course of conduct demonstrating that the parties have been treating their interests as separate and independent.

A qualified real estate lawyer in Toronto will guide you through the appropriate method based on your situation. The lawyer ensures that the severance is legally effective, properly registered with the land registry office, and fully aligned with your intentions.

Why You Shouldn’t Assume the Joint Tenancy Has Been Severed

Merely deciding that you no longer want the right of survivorship does not automatically change your ownership status. Courts in Ontario have made it clear that intention or informal conversation is not enough to sever a joint tenancy. Proper legal documentation and registration are required. A real estate lawyer ensures that your ownership interest is correctly recorded, so you don’t risk your share passing automatically to another co-owner upon death.

When Should You Consider Severance?

There are many common circumstances in Toronto real estate where severing a joint tenancy is advisable. Couples who are separating or divorcing may wish to convert to tenants in common so that each person can manage or pass their share independently. In estate planning, one owner might want to leave their portion of the property to a child or another beneficiary, which requires severance before death. Some joint owners may choose to sever for asset protection reasons or to manage potential creditor exposure. Likewise, business partners or unrelated co-owners often prefer to hold property as tenants in common to ensure clear division of ownership and value.

A real estate lawyer in Toronto can confirm how your title is registered, explain the legal and tax implications of severance including possible capital gains or principal residence considerations and prepare and file the correct documentation on your behalf.

Steps to Take with a Real Estate Lawyer in Toronto

When you meet with a Toronto real estate lawyer, they will begin by checking how your property title is registered and confirming whether you currently hold it as a joint tenancy or tenancy in common. Next, they will discuss your goals to determine the structure that best suits your situation. If you choose to sever, your lawyer will prepare and register the necessary transfer or conveyance documents to make the change legally effective.

Your lawyer will also ensure that your intentions are properly recorded and can assist in updating your estate plan, including your will and powers of attorney, to reflect the new ownership arrangement. Additionally, they will discuss how the severance could affect your taxes, estate obligations, and future property transactions, ensuring that every step is taken with accuracy and compliance under Ontario real estate law.

Final Thoughts: Secure Your Property Intentions

If you co-own property in Toronto and your personal or financial circumstances have changed, it may be time to consider severing your joint tenancy. Speaking with a real estate lawyer in Toronto ensures that the process is handled correctly, that your intentions are protected, and that your share of the property passes according to your wishes. Converting a joint tenancy into a tenancy in common might seem like a technical change, but it can safeguard your interests, prevent unwanted transfers, and give you full control over your property and future planning.

Don’t let default legal rules determine who inherits your property. Take proactive steps with an experienced Toronto real estate lawyer to make sure your ownership aligns with your goals and protects what matters most.