JOINT TENANCY VS. TENANCY IN COMMON

Rights and rules about shared property:

Protecting your rights is a serious consideration when entering into a shared property agreement. While joint tenancy and tenancy in common are often confused, there are distinct advantages and disadvantages with each. To make the best informed decision on your own behalf and that of your partner and/or heirs, take the time to know what each agreement entails. To further your understanding before making any kind of commitment, an experienced real estate attorney can clarify what is in your best interest concerning a particular property and the people involved.

Joint tenancy means the property is shared equally.

According to California state law, real estate purchased during a marriage or domestic partnership is a joint tenancy arrangement of community property. Each owner shares equal interest in the property, both are named on the title and both have the same legal rights to the co-owned property.  There are no survivor’s rights in joint tenancy so when a joint tenant dies, their share of the property automatically transfers to the surviving owner or owners.

Tenancy in common is ownership divided into percentages.

Tenancy in common is co-ownership of a property that is not shared equally — co-owners are usually not related. Often used as an estate planning tool, tenants in common can transfer their interest share of tenancy in common at any time, to anyone. This includes transfers through probate — a co-owner with survivor’s rights can legally pass their share of the property to their heirs. Tenants in common are required to share in the expenses, including tax liability and insurance, in proportion to their interest in the property. If there is income earned from the property it will be shared, again, in proportion to their interest in the property.

Know Your Rights. Protect Yourself.