Joint Tenancy vs. Tenants in Common
What is the difference between Joint Tenancy and Tenants in common?
Hi this is Heather Connor with Black Diamond Resort Group brokered through exp Realty. Today we are going to discuss the difference between joint tenancy and tenants in common. I must disclose first that I am not a real estate attorney and I cannot give legal advice. This is pre-printed information that I’m sharing for education purposes only. If you do have any questions about which type of ownership is best for you, please contact your real estate attorney. When you look at your contract to buy or sell, you’ll notice that there is a joint tenancy and tenants in common option at the top of the contract. There’s actually a legal difference that I want to touch on to ensure that you choose the right option for you.
Tenants in Common.
Tenants in common means that you have different ownership interests. For example, someone might own 25% of the home, and the other person owns 75%. These tenancies in common may also be obtained at different times.
Joint tenancy means that you obtain equal shares of the property with the same deed at the same time. This is the default ownership type for married couples. The right of survivorship is one of the main differences between the two types of shared ownership. When a property is owned by joint tenants, the interest of the deceased owner automatically gets transferred to the remaining surviving owner, whereas tenants in common have no rights or survivorship unless noted in the will of a deceased. A deceased tenant in common interest belongs to the estate.
Hopefully, that helps you figure out which box to check and if you have any questions please feel free to reach out, and again for advice please reach out to your real estate attorney.