Difference Between Joint Tenants And Tenancy in Common
Property law can be complicated, and many rights and restrictions exist regarding property ownership. When property transfers from one or more owners to more than two owners, the type of ownership may change to joint tenancy or tenancy in common. There are a number of basic differences between these two forms of ownership.
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Survivorship
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The main difference between joint tenancy and tenancy in common is what happens to the property should one of the owners die. In tenancy in common, the portion of the property owned by the deceased will pass to his heirs, whether according to a will or statute. In joint tenancy, the property transfers to the remaining surviving property owner or owners.
Ownership Interest
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A second main difference between joint tenancy and tenancy in common is the manner in which the ownership interest in the property is divided. In joint tenancy, all owners hold equal undivided ownership interests in the entire property. In tenancy in common, the owners can own unequal ownership interests. For example, if four individuals own property as tenants in common, one could own a 50 percent interest and the other two each 25 percent interests, whereas if the same individuals owned property as joint tenants, they would own the entire property with each person entitled to 25 percent of the proceeds when the property is sold.
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Creation
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The basic way to create joint tenancy or tenancy in common ownership of property is to state such ownership in the property deed, title or other document conveying ownership. Additionally, joint tenancy also requires the parties have the same interest in the property, and obtain it with the same deed or conveyance document at the same time. Property does not have to be obtained at the same time with the same document to create tenancy in common ownership.
Default
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If a deed or title between at least two unmarried individuals does not mention whether the property is being conveyed as joint tenancy or tenancy in common, the deed will be characterized as owned by the property owners as tenants in common. In some states, the default characterization of ownership when it is not delineated in the deed or title for property owned by husbands and wives is joint tenancy, while in other states, the default is tenancy in common.
Conversion
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Ownership as tenants in common can be converted to joint tenancy via written documentation. Joint tenancy can be converted to tenancy in common by either party, as well. Other situations which will usually convert joint tenancy to tenants in common include if the property is conveyed to a third party, transferred involuntarily such as through bankruptcy or a court judgment, or in divorce.
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References
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