• What’s the Difference Between Tenancy in Common and Joint Tenancy?

    Posted on March 29, 2012 by Kim in Home Buyers Information, Home Seller Information, Homes for sale in Salt Lake, Luxury Homes, Market Statistics, Previous Real Estate Information, RELOCATION: Moving to Utah? What Utah Has to Offer, Salt Lake Real Estate, Things To Do In Utah, Utah Real Estate.

    Ever wonder what the general difference between Tenancy in Common and Joint Tenancy are? When you purchase a home you “hold title” on that property. Here are two ways you can hold title. For specific information regarding this, contact an attorney.

    Tenancy in Common:

    Parties: Any number of persons or entities (can be husband and wife)

    Ownership:  Ownership can be divided into any number of interests, equal or unequal

    Title: Each co-owner has separate legal title to their undivided interest

    Conveyance:  Each co-owner’s interest may be separately conveyed

    Purchasers’ Status:  Purchasers become tenants in common with the co-owners

    Death: Upon a co-owner’s death, their interest passes by will or if no will, state intestacy to their devisees or heirs.  No survivorship right.

    Successors’ Status: Devisees or heirs become tenants in common

    Creditors’ Rights: A co-owner’s interest may be sold on execution sale to satisfy creditors.  Creditors become tenants in common

    Presumption:  Grant to multiple parties creates a tenancy in common presumption.

     

    JOINT TENANCY

    Parties:  Any number of persons, not entities (Can be husband and wife)

    Ownership: Owner interest must be equal

    Title: There is only one title to the whole property

    Conveyance: Conveyance by one co-owner without the others breaks the join tenancy as to the party who conveyed.

    Purchasers’ Status: Purchasers from one co-owner will become a tenant in common

    Death: On co-owner’s death their interest automatically transfers to the surviving joint tenant(s), outside of any probate proceeding

    Successors’ Status: Last survivor (s) owns property in whole

    Creditors’ Rights:  A co-owner’s interest may be sold on execution sale to satisfy creditors.  Joint Tenancy is broken.  Creditors becomes a tenant in common.

    Presumption: Must be expressly stated, unless a married couple.  If married, presumed to be joint tenancy.

     

    Other ways to hold title:

    Sole Ownership and  In Trust

     

     

     

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