When multiple people buy property together, they enter an agreement called a tenancy agreement. It dictates what will occur when one owner becomes deceased. There are several types of tenancy and each has distinct rights and stipulations. Below are definitions of the tenancy relationships for Pennsylvania home purchases.
Tenancy in Common
Tenancy in common enables an owner to maintain their rights in real estate. It dictates that when one owner passes away, their percentage of ownership will be left to their heirs. The heirs would take over the ownership in the real estate, lawfully becoming a tenant in common with the remaining co-owners.
For joint tenancy, when an owner passes away, their percent ownership in the property is transferred to the remaining co-owners. In cases with several other co-owners, each receives an equivalent portion. There is traditionally additional language in joint tenancies detailing time, possession, title, and interest in the property. The parties begin ownership simultaneously and by the same means (such as will or deed). Each also receives an equal interest in the property as a whole and not just certain pieces of it.
Tenants by the Entirety
This method of tenancy is similar to joint tenancy but applies directly to married couples. In the event of the death of a spouse, ownership is acquired by the surviving spouse. Tenants by the Entirety can only be terminated by divorce, death or mutual agreement. One spouse may not grant his or her interest to another party, but can give it to the other spouse.
More On Tenancy Relationships For Pennsylvania Home Purchases
It is important to understand the different tenancy relationships for Pennsylvania home purchases.Each bestows different rights to co-owners and heirs. For guidance on selecting the appropriate tenancy for your property purchase, consult a local attorney.