All About Co-Ownership

When two or more people own an interest in property, they are considered concurrent owners. The amount of control a co-owner has in their property is affected by how they hold ownership to the property. Varying forms of ownership dictate whether or not a co-owner can give their property away or how a co-owner’s interest passes to their estate or heirs upon their death.

The three forms of co-ownership are:

Tenancy In Common This form of ownership is the most commonly used form of co-ownership behind husband-and-wife ownership. Any number of people may own property together as tenants in common. Tenants in common may have acquired title at the same time or different times. Tenants in common may hold different percentages of ownership in the property. Each owner has an undivided interest in the property (an interest in the entire property, not just one particular party of the property). A tenant in common’s interest may be transferred or inherited, in which case the heir becomes a new tenant in common with the other co-owners.

Joint Tenancy This form of ownership is characterized by the right of survivorship. Joint tenants acquire title at the same time. Joint tenants hold an equal percentage of ownership in the property. Joint tenants have an undivided interest in the property (an interest in the entire property, not just one particular party of the property). When one co-owner dies, their share of the property goes to the surviving co-owner – not the heirs of the deceased.

Tenancy By The Entireties This form of ownership is basically a joint tenancy between husband and wife. When one spouse dies, their interest automatically transfers to the surviving spouse. Neither spouse can will any portion of their interest; however, this form of ownership can be divided by annulment or divorce.