Mark Weisleder, lawyer, author and speaker to the Real Estate industry, recently wrote an article in the Toronto Star on joint tenancy. This is a very important concept to be aware of if you are considering buying a home with someone, whether it be your spouse or another person.
How you decide to take title together has very different consequences. There are two ways that you are able to purchase a home together. It can be as a joint tenancy or a tenancy in common. Understanding the difference between the two options is essential.
Joint tenancy is based on the principal of survivorship. This means that if one of the owners dies while on title, their share on the home automatically passes to the surviving joint owner upon death. In a joint tenancy, the dying owner does not have the right to choose who their share of property is left to. In a tenancy in common, if one of the owners dies throughout ownership, they are able to leave their share of property to anyone they choose.
There are some tax benefits and breaks that are giving to those who choose to hold their property as joint tenants. Be aware of the differences and consequences of how you decide to register ownership of a property on title.
SOURCE: Mark Weisdleder http://www.markweisleder.com/12torontostararticle0107.pdf
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