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.
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