One Name on Title vs. Both Spouses in Alberta: What You Need to Know

Introduction When purchasing property in Alberta, a common question arises: Should we put only one person’s name on title, or both spouses’ names?

This decision is far more than a formality. It can impact your financing, future sale transactions, divorce settlements, estate planning, and debt exposure. Below is a simplified overview from our legal team.

1. Who is Officially “On Title”?

Under Alberta’s Land Titles system, the person(s) registered on title are the legal owner(s) of the property. They generally have the authority to:

• Sell the property;
• Mortgage the property;
• Make major decisions regarding the asset.

Note: Title ownership does not always determine family property rights. In the event of separation or divorce, a spouse who is not on title may still have a legal claim under the Family Property Act.

2. Option 1: Only One Person on Title

Some couples choose to register only one spouse for specific strategic reasons.

Potential Benefits

• Mortgage Approval: It may be easier to secure financing if one spouse has a significantly stronger credit profile.
• Simplified Structure: A more straightforward ownership arrangement.

Common Risks

• Disputes: If both spouses contributed financially, future disagreements could lead to caveats or court claims on the title.
• Probate Delays: If the sole owner passes away, the property often must go through the probate process, causing delays and additional costs.

3. Option 2: Both Spouses on Title (Joint Ownership)

There are two common forms of joint ownership in Alberta:

A. Joint Tenants (Best for Family Homes)

• Key Feature: Includes the Right of Survivorship, meaning the property automatically transfers to the surviving spouse upon death without going through probate.

B. Tenants in Common (Best for Investment Properties or Blended Families)

• Key Feature: Each owner holds a defined percentage. There is no automatic transfer on death; instead, the share passes through the deceased’s estate according to their Will.

4. Alberta’s Dower Act – A Critical Legal Point

Even if only one spouse is on title, if the property is considered the “Family Home” (Homestead), Alberta’s Dower Act applies. The non-titled spouse may still be required to provide formal written consent for any sale or mortgage of the property.

Practical Takeaways for Homebuyers

Before deciding on your title registration, consider these four factors:

1. Is the property a primary residence or an investment?
2. Did both spouses contribute to the down payment or mortgage?
3. Are there any business risks or debt exposure concerns?
4. What are your long-term estate planning goals?

Seeking early legal advice can prevent costly disputes and transaction delays. If you are looking for a real estate lawyer in Calgary to assist with your closing, please contact Bayview Law today.

Disclaimer

This article is for general informational purposes only and does not constitute legal advice. Reading this article does not create a solicitor-client relationship. Legal outcomes depend on specific facts and applicable law.

Author: Mara Li
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