When multiple people purchase or inherit property, the type of ownership that they have is critical in determining what rights the parties have in the land and what rights each has in transferring interest. Tenants in common allows interest to be freely transferable. One tenant may choose to sell his ownership in the property. This will not affect the other tenants. When one tenant dies, that portion of the interest passes to heirs. If you intend to take property as tenants in common, ensure that the proper language appears on the deed.
Discuss how you intend to split up the ownership interest with the other tenants. For example, if you are purchasing land with three other people and you each intend to pay an equal amount for the property, consider splitting the ownership three ways. Alternatively, you can adjust the ownership percentage based on the percentage each person contributes to the purchase.
Speak with the owner of the property (the “grantor’). Ask the grantor to include the following language after the names and addresses of the new owners in the deed (the “grantees”): “[Name and address of the Grantor] for and in consideration of [amount for purchase] grants to [Names and addresses of the Grantees] the property described below as tenants in common.”
Ensure that the grantor signs the deed. Have the deed notarized and recorded at the county office in your jurisdiction that handles property titles. Provide copies of this deed to each new owner of the land.