3 Types of Joint Tenancy Options
Joint tenancy is when two or more people own property together. In this blog, we will discuss 3 types of joint tenancy. One of the main differences in joint tenancy options is the aspect of survivorship. If the joint tenancy agreement includes survivorship, that means the title will automatically transfer to the surviving member(s) when one of the tenants passes away. In addition, the transfer is NOT subject to probate.
Tenancy in Common (Most Basic Form of Joint Tenancy)
- Tenancy can be divided in unequal shares; for example, one person may own 80% of the property while the other owns 20%
- Tenants can SELL or PASS their shares to heirs or beneficiaries through their wills
- Does NOT have survivorship
Joint Tenancy with a Right of Survivorship
- All tenants own the property equally; for example, 50% / 50%
- If one tenant dies, their ownership transfers automatically to surviving member(s) upon death (survivorship)
Tenancy by the Entireties
- This joint tenancy option is only for married people
- Includes survivorship
- Prevents sale of property without both spouses’ consent
- Not all states recognize this form of joint tenancy: the state of Florida DOES
Bottom Line: Before you enter into a joint tenancy, work with a title company to decide the best option for your unique situation. The team at Clear Title, a title company in Pensacola, Florida, can help you through this process. Clear Title is led by Board Certified Real Estate Attorney Stephen R. Moorhead.
To schedule a meeting with the title experts in Pensacola, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.