The title and deed of a piece of real estate, such as a house, serve as evidence of the ownership rights that are held in that piece of property. In the event that you and two other people jointly own a property, for instance, the deed will indicate that all three of you are co-owners of the property. It is possible for the co-owners of a piece of real estate to divide ownership of the property into equal or unequal parts. In a tenancy in common agreement, the ownership of the property might be split unequally, but in a joint tenancy there is equal ownership of the property.
Tenancy in Common Ownership
According to the Los Angeles Times, there are various different types of property ownership, one of which is called tenancy in common. This kind of ownership allows several persons to acquire deed and title jointly, with equal or unequal shares of ownership. For instance, you and two other people you know may jointly own a house, and the deed might indicate that each of you has a thirty percent stake in the property. The other two owners whose names are mentioned on the title to your property would jointly possess a 70-percent ownership stake in the house, which might be split between them equally or unequally.
Access, Expenses and Proceeds
Regardless of the specific ownership portion that is held, every owner in a tenancy in common has the right to access the whole property. This applies to the entire property. In a tenancy in common, costs are distributed among the owners in accordance with the percentages of ownership they each have in the property. For example, if you own 25 percent of a tenancy in common house, you are responsible for paying 25 percent of the home’s operating expenditures. Additionally, you are entitled to twenty-five percent of any earnings or revenues from the sale.
Sale or Inheritance of Shares
According to the findings of the Law Firm of Earl P. White, it is possible for you to sell your ownership share in a tenancy in common without first obtaining the agreement of your co-owners. -,N.J.S.A.,consent %20of%20other%20co%2Dtenants.). You cannot typically compel the other owners of your tenancy in common property to sell their individual property shares, and you also cannot sell the whole property without the approval of the other owners. This is because you own the property jointly with them. Tenancy in common property owners are able to leave their ownership shares to their heirs if they so want. Owners of properties held under tenancy in common, as opposed to owners of properties held in joint tenancy, do not have the right to an automatic inheritance or survivorship rights in the shares of dead owners.
Taking Title and Co-Ownership Agreements
If you are going to purchase property with other people, the deed will require that you choose one of many different types of property ownership to indicate. If the ownership arrangement is a tenancy in common, then you and the other owners of the property will need to decide on the ownership share percentages before you can claim title to the real estate. Before acquiring the property’s deed and title, would-be co-owners of the property should confer with a legal professional and compose a co-ownership agreement. Co-owners may prevent possible disagreement over the use of the property and its eventual disposal by entering into a co-ownership agreement.