Tenancy is an ownership agreement between two or more parties who acquire real estate together. It specifies what will happen when one owner dies. There are several types of tenancy and each contains separate rights and requirements. Below are definitions of the different types of tenancy relationships for Sewell real estate purchases.
Types Of Tenancy Relationships
Tenancy in Common
Tenancy in common allows an owner to preserve their rights in a property. It ensures that when one owner dies, their interests will be inherited by their heirs. The inheritors would take over the ownership in the property, lawfully becoming a tenant in common with the remaining co-owners.
With joint tenancy, when one owner dies, their portion of ownership in the property is passed on to the remaining co-owners. In cases with several other co-owners, each inherits an equivalent share. There is traditionally added wording in joint tenancies detailing time, possession, title, and interest in the home. The parties receive ownership at the same time and by the same means (such as will or deed). Each also receives an undivided interest in the entire property and not just certain pieces of it.
Tenants by the Entirety
This type of tenancy is similar to joint tenancy but applies only to married couples. In the event of the death of a spouse, ownership is inherited by the surviving spouse. This type of tenancy can only be ended by death, divorce or mutual agreement. One spouse cannot grant his or her interest to a third party, but can give it to the other spouse.
More About Types Of Tenancy Relationships For Sewell Real Estate Purchases
It is important to understand the distinct types of tenancy relationships for Sewell real estate purchases.Each imparts different rights to co-owners and heirs. For guidance on selecting the appropriate tenancy for your property purchase, consult a local attorney.