Joint Tenants vs Tenants in Common: What’s the Difference?
Buying a property is not always as straightforward as getting a loan and signing and lease and owning the lot. Your case may be one where you have to share the property with others, and that is where joint tenants vs tenants in common comes into play. A landlord tenant attorney can be a great help (and a necessary one) when you enter any of these co-ownership types to get real estate. But it is always a great idea to understand exactly how much control and what rights you will have. This guide is your easy start for the basics of both joint tenancy and tenancy in common.
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All About Ownership Joint Tenancies in Sharing Real Estate
Joint tenancy works is where you and all owners in the property have equal shares and get the same control as well. The rules of survivorship also apply here, which say that you can pass your share in the lot to the next person who survives you (spouse, kids). This way of transferring your real estate means that your loved ones go through a very simple process to protect their property rights.
Taking the first option in the case of joint tenancy and tenants in common means you get to go through future plans in a simple way when you are married. You can give your spouse peace of mind because they get their rights under marital property laws when joint tenancy is your choice. The property transfer process will cost barely anything and there’s no time-consuming probate process to worry about!
An estate planning lawyer will let you know how your share in a joint property passes on after death. Go for an experienced law firm that also handles real estate legal cases and can draft and review documents like the survivorship application for you.
Tenants In Common Ontario: How Does It Work
Are you about to buy a share (or inherit one) in a property where each owner has certain financial input and gets control according to it? That’s ‘tenancy in common’ in a nutshell for you!
This model is ideal for you if you like being independent while still having unequal shares in a lot with others. There are some drawbacks to this setting, the number one being that you will not be able to just ‘pass down’ your share in case of death. You real estate share is this case of tenancy in common vs joint tenancy goes through the legal process of dividing an estate in courts.
The biggest benefits comes around when eventually sell your share or pass it on. Your position as a free tenant not hold you back as other people who have a share cannot have a say in how you make a decision. The process of title deed transfer in Ontario for tenants in common is a simpler one with. Future buyers can also find it part very attractive and you may get good offers depending on your share!
A good real estate lawyer for signing the contract and then an estate planning expert can be your partners in protecting your future. They will also make sure that you follow ownership laws according to your province so that the deal is a favorable one.
How To Decide Between Joint Tenants vs Tenants in Common
Choosing between joint tenancy and tenants in common is all about your goals. It is also about how you get along with other owners and what you want to happen to the property down the line.
Make sure you know your benefits and drawbacks for each when comparing joint tenancy and tenants in common. Reading up on the inheritance law in your province helps you keep you and your loved ones safe as life brings along changing needs and goals.
Here is how you decide which ownership structure fits you:
Co-Owner Relationship
You relation with the other person (or more people) is a massive factor when you want to own a property with a joint share. Couples who like a no-fuss transfer go for this because it takes out the long and stressful probate process from the equation.
Tenants in common works better if you enter property share with acquaintances or business partners, and want to be free to leave your share to someone else. Married partners get special protection due to tenancy by the entirety in some places in Ontario.
Financial Contributions
Joint tenancy gives you and all the other owners the same share even if you paid more than others. This feels unfair when the time comes to make a decision, but you are blocked by approval wait times (and even disapprovals) from other owners.
You get the control that matches your investment when you opt for tenancy in law in Ontario. That is why this ownership type works well for deceased estate handling when there are many formal steps. This fairness can prevent tension later, and you can have the relief of free will when you plan your future.
Future Estate Goals
Consider your estate goals before you choose your ownership status. Do you intend to move property directly to surviving co-owners and bypass any will? Then go for joint tenancy.
Tenants in common is the kind of ownership that pairs with your goals if you want to leave property to children or other relatives. A lawyer for real estate will get you through the purchase, while an estate planning expert will help keep the co-tenancy setup and right to your share very smooth.
Going Through Property Ownership and Transfer Matters? We Can Help!
Buying real estate can have a few legal steps you have others with a share in it, and you have to choose between joint tenants vs tenants in common. Each has its own benefits and limits, so go through any contract again and again to know your rights. An even better move is to have the advice and services of a skilled lawyer throughout the transfer of ownership.
At Estofa Law, our team protects clients interests and help you navigate every step. Our support also reduces risks and future tax implications. Book a consultation today and make the most of our insights and skill in handling any joint ownership case.
