Changing Property Ownership Structure

Summary

In Ontario, a joint tenant can unilaterally change to tenants in common without consent, affecting only their share. Reverting to joint tenancy requires mutual consent due to its impact on both parties. Joint tenancy avoids probate, while tenants in common may incur capital gains tax upon death. Consult a legal professional for guidance on reverting ownership structures.

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well arent both parties impacted when it changes the other way because now that person dies you get stuck with selling your half of the home to pay gains tax
It sounds like you're concerned about the tax implications of converting from joint tenancy to tenants in common and vice versa. In Ontario, converting to tenants in common can indeed create complications, especially regarding capital gains tax if one party passes away.
- Joint Tenancy: Both parties have equal ownership; on death, the property passes to the surviving owner without probate.
- Tenants in Common: Each party owns a specific share; on death, their share goes to their estate.
Would you like more detailed information on how these changes could affect your tax obligations?
yes
Sure, here's some more detailed information regarding the tax implications:
- Joint Tenancy:
- No immediate capital gains tax as the property passes directly to the surviving owner.
- Probate is avoided, simplifying the transfer process.
- Tenants in Common:
- Each owner's share is treated as part of their estate.
- On death, the estate may be subject to capital gains tax.
- The deceased's share passes according to their will, potentially complicating ownership.
Would you like to know more about the tax obligations or the process of reverting back to joint tenancy?
yes
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To revert back to joint tenancy in Ontario, you would need the consent of both parties because it affects both owners' interests. Here’s a brief on the process:
- Both owners must agree and sign a new transfer deed.
- The new deed must be registered with the Land Registry Office.
- Consult a legal professional to handle the paperwork and ensure compliance.
Would you like more information on any specific aspect of this process?