When multiple parties purchase real estate together, they enter a legal agreement called a tenancy agreement. It details what will occur when one party becomes deceased. There are three categories of tenancy and each comes with different rights and stipulations. The following are details on the different types of ownership relationships for Franklin TN and Middle Tennessee area real estate.
Types Of Ownership Relationships
Tenancy in Common
Tenancy in common permits an owner to maintain their rights to real estate. It dictates that when one co-owner passes away, their interests shall be passed on to their estate. The inheritors thus take over the ownership in the real estate, essentially becoming a tenant in common with the remaining parties.
In joint tenancy, when an co-owner dies, their percent ownership in the property is shared among the surviving co-owners. In cases with several other parties, each receives an equivalent distribution. There is usually added language for joint tenants outlining time, possession, title, and interest in the real estate. All parties take ownership simultaneously and by the same methods (i.e. will or deed). Additionally, each person gets an undivided interest in the property as a whole and not just specific components of it.
Tenants by the Entirety
This tenancy applies only to married individuals. In the event of the death of a spouse, ownership is inherited by the surviving spouse. This type of tenancy can only be ended by death, divorce or mutual agreement. One spouse may not give his or her interest to a third party, but can give it to the other spouse.
More On Types Of Ownership Relationships
It is important to understand the different types of ownership relationships for Franklin TN and Middle Tennessee area real estate. Each allows different rights to co-owners and heirs. If you are not sure about which tenancy relationship to select for your property ownership, contact an experienced attorney for advice.
For additional information on the types of ownership relationships for Franklin TN and Middle Tennessee area real estate, contact Blueprint Realty, Inc. at (615) 538-8328 or [email protected] for additional information.