Land Ownership, Joint Tenancy V Tenants in Common
When acquiring property with friends, family or business associates make sure you are aware of the differences between the two forms of legal ownership, Joint Tenancy or Tenants in Common. The default agreement tends to be as joint tenants though the difference is enormous.
There is one major difference between the two. If your ownership in the property is as a joint tenant you can not will or gift your share of the property to say your wife or children. Your share of the interest in the land will transfer to the surviving joint tenant(s). Tenants in common on the other hand do not posses a right of survivorship and any interest in the property passes according to the terms and conditions of their will.
What are the other differences?
Joint tenants must obtain the interest in the property in the same transaction and at the same time. All joint tenants have an equal interest over the whole of the property and can not have exclusive possession to any part. Even though the interest in the property can not be willed or gifted to another, it can however be transferred.
Tenants in common
Tenants in common can hold either equal shares or the shares can be apportioned to reflect each owner’s contribution. It is therefore necessary for the share holding of the individual to be recorded. Similar to a Joint tenancy a tenant in common has an equal right over the whole property and not exclusive possession of any part. If you enter into this type of ownership it would be sensible to draw up a contract as to how the other shareholder(s) can dispose of their share, stating they must offer it to them first perhaps. The contract should also include an agreement as to the management and maintenance of the property.
Both types of ownership have benefits depending on your situation. Before entering into a contract for the sale of land we advise you discuss what type of ownership is most suitable to you with your solicitor.
Thinking of Selling or Leasing your property? Contact the professionals that have the experience, local knowledge and track record. Taylor Nicholas, your Prime Property Specialists.