There are various ways for two people to “co-own” a property. The type of co-ownership determines individual legal rights of each owner of the property and has its own benefits. It is important to understand these differences and choose the type of ownership that suits you best.
The two most common types of co-ownership of property are joint tenancy and tenancy in common. In a typical joint tenancy arrangement, two people have identical legal rights – generally referred to as “interest” – in the entire property. Joint tenants enjoy the right of survivorship: if one of the joint tenants dies, the surviving joint tenant automatically receives the property interest of the deceased joint tenant. This automatic transfer of property offers various advantages to individuals, including specific implications for control over property, estate planning, probate, applicable taxes, etc. On the other hand, tenants in common enjoy a different type of ownership: instead of having an identical property interest, they may own different portions (“shares”) of property. Tenancy in common further does not have the automatic right of survivorship: when one of the tenants in common dies, their property interest does not automatically pass to the surviving tenant. Instead, it may fall into the deceased tenant’s estate and be distributed in accordance with their Will or applicable laws.
These two distinct types of co-ownership of property offer unique advantages and disadvantages. The two modes of tenancy could ensure advantageous control and passing of property, provide for certain legal benefits and allow for effective estate and family planning. If you are contemplating purchasing a property with another person or are interested in reviewing the ownership you currently enjoy, our experienced real estate team would be happy to provide you with a consultation. To book your consultation with Buzaker Law team, please email us at firstname.lastname@example.org or call us at (905) 370-1471.