If more than one individual will be registered on title, you should consider whether you would like to register the transfer/deed as joint tenants or as tenants in common. The following definitions are provided to assist you:
Joint Tenant
Joint tenancy ensures that on the death of either of the joint tenants ownership goes to the surviving tenant. Interest in a property owned under joint tenancy cannot be willed to a third party or encumbered or disposed of by one or other of the owners without the consent of the other.
Where one of the "joint tenants" dies, the surviving joint tenant(s), usually automatically, becomes the owner(s) of the property no matter what a Will might state. This is the matter of holding title most commonly used by spouses.
Tenants in Common
There are no rights of survivorship in this type of ownership, therefore the interest in the property does not terminate on death. Each tenant holds an undivided interest in the property and can dispose of this interest by Will or other means.
Under this type of ownership, each owner's share can be different (e.g. A owns 80% and B owns 20%).
Real Estate and Property Law covers an extensive legal area, which is regulated by federal and state statutes, as well as common law. Many aspects of this area overlap with contract law. The terms “real estate”, “realty” and “real property” are generally used interchangeably, although many people associate “real estate” more closely with the structures or buildings and the land.
ReplyDeleteProfessional Legal Network