When it comes to owning property with others, understanding the difference between Tenants in Common vs Joint Tenants is crucial. Both are common ways for multiple individuals to share ownership of the same property, but they have distinct legal implications regarding ownership shares, rights of survivorship, and transfer of interest. Choosing between Joint Tenants vs Tenants in Common affects how property is inherited, sold, or managed, making it important to know which arrangement best suits your needs. In this article, we will explain the key differences between Joint Tenants vs Tenants in Common to help you make an informed decision about co-ownership.

What Is Joint Tenancy?

Joint tenancy means all owners have equal rights to the property. If one owner dies, their share automatically passes to the surviving owner(s). This is called the right of survivorship.

Key Features:

• Equal ownership for all joint tenants.

• Right of survivorship applies.

• All decisions must be made jointly.

Example: If two people own a house as joint tenants and one passes away, the other automatically becomes the full owner.

What Is Tenancy in Common?

In a tenancy in common, each owner holds a separate share of the property, which can be equal or unequal. If one owner dies, their share doesn’t go to the other owners, it goes to their estate or chosen beneficiary.

Key Features:

• Shares can be divided unequally.

• No right of survivorship.

• Owners can sell or transfer their shares independently.

Example: If three friends buy a home as tenants in common and one dies, their share goes to their heir or estate, not the other two owners.

How to Check Your Property Ownership Type?

Check your property’s title deed to find out if it is owned as joint tenancy or tenancy in common. This document lists the type of ownership.

Look for:

• The phrase “as joint tenants” or “as tenants in common” on the title.

• Your lawyer or local land registry office can also assist you in confirming this.

How to Change Ownership Type

It’s possible to convert joint tenancy to tenancy in common or vice versa. This usually involves:

• Preparing a new deed.

• Getting all owners to agree (unless legally ordered otherwise).

• Registering the new deed with the land title office.

A real estate lawyer can help manage this process smoothly.

Ending a Tenancy in Common: Buyout and Court Proceedings

Owning property as tenants in common means each co-owner has a distinct share. But what happens when one person wants out? Here’s how to resolve it, either through mutual agreement or the court.

Buyout Between Tenants in Common

A buyout is the simplest way to end a tenancy in common. One or more co-owners agree to purchase the other’s share, based on fair market value. The selling party is removed from the title, and ownership continues with the remaining party or parties.

Key Steps:

• Agree on a property valuation.

• Draft a legal buyout agreement.

• Transfer the ownership share via a deed.

• Register the updated title.

Pro Tip: Use a real estate lawyer to draft documents, handle transfers, and manage tax matters.

Court-Ordered Partition or Sale

When co-owners can’t agree on a buyout, any tenant in common can request a partition action through the court. This means asking a judge to divide the property (if possible) or order a sale.

How It Works:

• File a court application.

• The court reviews whether a physical split is practical.

• If not, the court orders a sale.

• Proceeds are divided according to each owner’s share.

When is This Needed?

• Disagreements over selling or using the property.

• Refusal by one party to cooperate.

• Disputes after inheritance or divorce.

• Breakdown in a business partnership involving real estate.

Note: Partition actions can be costly and lengthy, so mutual agreements are always preferable.

Final Thoughts

Understanding the difference between joint tenants vs tenants in common is crucial when buying or owning property with others. The best choice depends on your personal, family, and financial circumstances. Always seek guidance from a real estate lawyer to choose the right ownership structure and manage any changes or disputes in co-ownership situations.