Our legal system recognises two ‘types’ of ownership when there is more than one owner: joint tenancy or tenancy in common.

If you are purchasing real estate with another person (or in more than one buying entity, eg. two trusts) then we will need your instructions as to how the buying parties are going to hold the title after they become the new owners.

In short, joint tenancy means that all of the owners hold equal shares in the property, and if one of the owners dies then their share in the property becomes 0% upon their death. That is, their interest in the property does not follow their Will.

Tenancy in common means that the shares held by the owners can be specified–for example, 1/3 and 2/3 or 3/100 and 97/100. The shares are also devisable, meaning that they form a part of the estate of the owner if the owner dies, and the interest in the real estate will follow the terms set out in the Will of the owner.

The way that you choose to specify the type of ownership on the title can have significant estate planning implications, and is also looked at if you are separating from a spouse for example.

If you have any questions in relation to how you own your property, or you would like to review your estate plans, please do not hesitate to contact our office.

“But we paid the mortgage off years ago!“

In short, a mortgage is a legal instrument used by lenders to secure loans. It attaches to the real estate and is recorded on the title to the property.

A loan on the other hand is a contract. A promise by the homeowner to repay a debt.

You may have repaid all of the debt without arranging for the bank or credit union to ‘release’ the mortgage from the title. The releasing of a mortgage is not an automatic process that occurs on the repayment of the loan in full. It is an extra step–that will involve the payment of a Titles Registry fee–that many of our clients are not aware of.

If you are looking at selling your property and you are not sure whether or not it is encumbered by a mortgage, please feel free to contact Sarah Thompson of our office who will be happy to find out if your mortgage has been released.