When you own a home with someone else, you may share the ownership as joint tenants. This type of ownership has special rules and rights that can affect your property now and in the future.
Understanding joint tenancy law is important to protect your interests and avoid surprises. Read on.
What Is Joint Tenancy?
Joint tenancy means that two or more people own a property together. Each owner has an equal share in the whole property, not just a part of it.
For example, if two people buy a house together as joint tenants, they both own the entire house equally.
The Right of Survivorship
One of the main features of joint tenancy is the right of survivorship. This means that if one owner dies, their share automatically goes to the other owners. The property does not go through probate or pass to the deceased owner’s heirs.
This can be a good way to make sure the surviving owners keep the property without legal delays. However, it’s important to know that the right of survivorship can’t be changed by a will.
How Joint Tenancy Differs From Tenancy in Common
Joint tenancy is different from another type of shared ownership called tenancy in common. In a tenancy in common, each owner can leave their share to anyone they want in a will. There is no right of survivorship.
In joint tenancy, the shares must be equal. But in a tenancy in common, the shares can be unequal. For example, one owner can have a 70% share, and the other can have 30%.
Severance of a Joint Tenancy
Joint tenancy can end through a process called severance of a joint tenancy. Severance happens when one owner sells or gives away their share to someone else. When this happens, the new owner does not have the right of survivorship. The joint tenancy turns into a tenancy in common.
Severance can also happen if all the owners agree to end the joint tenancy. It’s important to know that you can end a joint tenancy without the other owner’s agreement if you transfer your share to yourself or to someone else.
Why Joint Tenancy Matters
Joint tenancy can make it easier to pass property to the surviving owners. This can save time and money because the property does not go through probate. It also helps avoid legal disputes between heirs.
However, joint tenancy has some risks. For example, if one owner has debts, creditors may be able to go after the property. Also, joint tenancy can limit your ability to leave your share to someone else.
Learn All About Joint Tenancy Law
Joint tenancy is a common way to share property ownership. It offers special rights, like the right of survivorship, but also comes with rules you should understand.
Knowing how joint tenancy works can help you avoid problems and protect your property. If you’re thinking about joint tenancy or dealing with issues like severance, make sure you get the right advice. This will help you make choices that are best for you and your co-owners.
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