Joint Tenants vs Tenants in Common: What Are the Differences?
Tenants in common and joint tenancy property ownership do have similarities, but the way they work and the benefits they offer are significantly different.
If you are thinking about buying into a residential property with other people, having a clear understanding of what types of ownership arrangements you have available to you will help you make the right decision.
So, what is the difference between joint tenants vs tenants in common? Read on to learn more about the two parties and how they differ.
Joint tenants are two or more people who own a piece of property together.
Each joint tenant has an undivided interest in the property, which means they each own an equal share. Each is also entitled to use the entire property. They are jointly liable for their upkeep and mortgage payments.
If you looking to rent and share with someone, or a rental unit owner accepting this type of arrangement, proper screening is highly recommended. This is will help you avoid issues that joint tenancy rental commonly faces.
Rentsafe.lease offers a platform that easily and efficiently screens tenants for you, so make sure you check them out.
Tenants in Common
A tenant in common is another term used referring to an owner of a property with one or more other people. Each tenant in common owns an undivided but identifiable portion of the property. The proportions of ownership can be equal or unequal. Each has different rights to the property, such as occupying a certain portion of the property.
In most cases, tenants in common are family members or close friends who wish to share ownership of a property. Tenants in common are not required to share equal profits or losses.
The Key Differences
The key difference is that joint tenants have the right of survivorship, while tenants in common do not. This means that if one joint tenant dies, the surviving joint tenant(s) will automatically inherit their interests. While tenants in common can leave their interests to whomever they choose in their will.
When it comes to selling or encumbering their interest in the property, joint tenants need the unanimous consent of all owners while tenants in common can do so unilaterally.
Additionally, joint tenants must acquire their interest in the property at the same time and from the same source. However, tenants in common can acquire their interests at different times and from different sources.
Understand the Differences Between Joint Tenants vs Tenants in Common
It is important to understand the key difference between joint tenants or tenants in common when buying a property with someone else.
Now that you understand the key difference between joint tenants vs tenants in common, you can make an informed decision about which option is best for you.
When deciding which arrangement is right for you, it’s important to consult with an experienced attorney. This will ensure that your interests are fully protected.
If you would like to continue reading other informative articles like this, be sure to check out the rest of our blog.