What is the Difference Between Joint Tenants and Tenants in Common

When two or more people buy a property together, this is known as shared ownership. There are two main types of share ownership as joint tenancy and tenancy in common.

What is the difference between joint tenants and tenants in common? With joint tenants, if one partner dies, their share automatically goes to the other co-owners. However, with tenants in common, if one partner dies, their share goes to whoever they named in their will.

Key Areas Covered

1. Who are Joint Tenants
     – Definition, Features, Pros & Cons
2. Who are Tenants in Common
     – Definition, Features, Pros & Cons
3. Similarities Between Joint Tenants and Tenants in Common
     – Outline of Common Features
4. Difference Between Joint Tenants and Tenants in Common
     – Comparison of Key Differences
5. FAQ: Joint Tenants and Tenants in Common
     – Answers to Frequently Asked Questions

Key Terms

Joint Tenants, Joint Tenancy, Tenants in Common, Tenancy in Common

Who are Joint Tenants

Joint tenants are two or more people who buy a property together and share equal ownership and rights. They could be couples (married or unmarried), business partners, friends, or family members. In a joint tenancy, everyone involved owns the property equally. They must make important decisions together, such as when to sell, how to handle repairs, and how to split profits.

For a property to be legally considered joint tenancy,

1. All owners must obtain the property at the same time
2. Everyone must have an equal share of the property
3. The title deed must come from the same document
4. All owners must have the same rights to use and control the property

Pros and Cons of Joint Tenancy

One of the biggest advantages of joint tenancy is called the right of survivorship. If one owner dies, their share automatically goes to the remaining owner(s). Therefore, there is no need for a court process (probate). For example, if a married couple owns a house as joint tenants and one spouse dies, the other automatically becomes the full owner.

However, there are some disadvantages, too. If one of the owners has debts, their creditors can try to take that person’s share, even if the others have nothing to do with the debt. So it’s important to know the financial situation of your co-owners.

Moreover, if the owners can’t agree on what to do with the property, they might have to go to court to resolve it. This process is called a partition action. This can be expensive and time-consuming.

Who Are Tenants in Common

Tenants in common are also co-owners of a property but with more flexibility. In tenancy in common, each person can own a different percentage of the property. For example, one person might own 25% and another 75%. Still, all owners have full access to the entire property. This is called undivided interest – no one owns a specific corner or room, even if their share is larger.

Another main feature of tenancy in common is that it allows each person to pass on their share to anyone they choose after they die, such as a child or sibling.

Pros and Cons of Tenancy in Common

One big advantage is that shares don’t have to be equal. It’s a good choice for people who want to invest together or couples who don’t want their share to go directly to their partner after death. For example, a widow who remarries might prefer this arrangement so her children inherit her share.

However, there are some downsides. If a co-owner doesn’t have a will, their share will be handled by the state’s probate laws. Also, any co-owner can sell their share without the others agreeing. This means you could end up sharing ownership with someone you don’t know if one of your co-owners sells their part.

Similarities Between Joint Tenants and Tenants in Common

• Both involve two or more people owning a property together.
• All owners have legal rights to use and access the whole property.
• Both types of ownership can be used by married couples, family members, friends, or business partners.
• In both, owners are responsible for the costs related to the property, like taxes and maintenance.

Difference Between Joint Tenants and Tenants in Common

Definition

• Joint tenants are two or more people who buy a property together and share equal ownership and rights, whereas tenants in common are two or more people who own a property together, but not necessarily equally.

Ownership Shares

• In a joint tenancy, all owners have equal shares in the property, whereas in a tenancy in common, each owner can have a different share, like 25%, 50%, or 75%.

Right of Survivorship

• With joint tenants, if one person dies, their share automatically goes to the other co-owners. However, with tenants in common, if one person dies, their share goes to whoever they named in their will.

Selling Your Share

• In a joint tenancy, an owner cannot sell their share without the agreement of the other owners. But in a tenancy in common, any owner can sell their share at any time without needing permission from others.

FAQ: Joint Tenants and Tenants in Common

1. What is the best tenancy for a married couple?

For most married couples, joint tenancy is usually the best because if one person dies, the other automatically becomes the full owner of the property without going through court (probate).

2. What is the most common type of tenancy?

The most common types of tenancy are joint tenancy, tenancy in common, tenancy by the entirety (for married couples), and periodic tenancy. Each of these has different rights and responsibilities regarding property ownership.

3. What is the biggest difference between joint tenancies and tenancies in common?

The biggest difference between joint tenancies and tenancies in common is what happens when an owner dies. In joint tenancy, the other owners automatically get the share (this is called the right of survivorship). In a tenancy in common, the share goes to the person named in the will, not the other owners.

Reference:

1. “What Is Joint Tenancy in Property Ownership?” Investopedia.  
2. “Tenancy In Common (TIC): How It Works and Other Forms of Tenancy.” Investopedia.  

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