What is the difference between “Joint Tenants” & “Tenants In Common”

When people own property as "joint tenants”,, this means that:

·All parties have equal ownership and interest in the property

·A right of survivorship exists (if one tenant dies, the property will pass on to the surviving joint tenant)

Often, joint tenants are married or couples in long-term relationships.

A joint tenancy will end if the property is sold to a third party, if one joint tenant transfers their interest to another joint tenant or, if one tenant unilaterally severs the joint tenancy ( in the case of relationship breakdown).

A joint tenancy can be severed when one of the joint tenants transfers all of their interests in the property. The transfer does not affect the shares of a registered joint tenant, who is not part of the transfer.

When people own property as "tenants in common”, it means that two or more people co-own a property in defined shares that they can dispose of.

The shares can be of equal or unequal value and a tenant in common can sell their shares in the property or give them away in a will. This means that there are no rights of survivorship.

Tenants in common arrangements are typically used for people with adult children, who are entering second marriages, people who contribute very different amounts towards the purchase of the property, or investors who are buying property together.

Always speak to your accountant about the best type of structure for you.

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Jason Gwerder
Tuesday, 18 February 2020

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