This is part 1 of 3 from my guest legal blogger, Patrick Shing.
What Happens When a Homeowner Dies?
When a person dies while still owning real property, one of several things can happen, depending on how that person holds title to the property.
Joint Tenancy
When two or more people hold title to a property as joint tenants and one of the owners dies, the remaining owners then become all the owners of the property and are entitled to have the deceased owner’s name removed from the title to the property. This is called a right of survivorship. The process for removing the deceased person’s name requires the provision of proof of death (e.g. an original death certificate) and the registration of a Survivorship Application by the remaining owners.
Tenancy in Common
Unlike with a joint tenancy, when two or more people hold title to a property as tenants in common and one of the owners dies, the deceased owner’s share is dealt with through the deceased’s estate. For example, if Tom, Dick and Harry own property, each with a 1/3 share, and Tom dies, Tom’s 1/3 share is dealt with in accordance with the instructions found in his Will. If Tom did not leave a Will, then his share would be dealt with in accordance with the laws dealing with intestacy. Neither Dick nor Harry would receive Tom’s ownership interest in the property unless they were beneficiaries of Tom’s estate.
Sole Registered Owner
If a person owns a property on his own, then upon his death, the entire ownership interest would be dealt with similarly to the situation found when one owner as a tenant in common dies.
In my next article, I will discuss the process involved in dealing with a deceased owner’s interests when there is no right of survivorship.
—
Patrick’s law practice encompasses both residential and commercial real estate transactions, including purchases, sales, mortgage refinancing, and estate transfers. As part of the team at the law firm Mills & Mills LLP, Patrick focuses on building lasting professional relationships and being a trusted legal advisor to his clients. He can be reached by email at patrick.shing@millsandmills.ca or telephone 416-682-7054
