Tenants in Common - Plano
Wednesday, June 17
Tenants in Common may be one of the ways to hold title to your property, by two or more individuals. This is sometimes referred to as Tenancy in Common. There is no limit to the number of individuals who can hold title to one piece of real estate. Are Tenants in Common and Joint Tenants Similar?No. Except that Tenants in common hold one similarity or requirement that is similar to joint tenancy. That similarity is the right of possession. · Ownership or Plano Real Estate can be held in equal shares or unequal shares. Example, Sam could hold 25% ownership, Jill 25% and Larry 50%. · Tenants in common can be between two or more persons who are related or who are unrelated. Husbands and wives can hold title as tenants in common. Co-tenants have the right to possess the property by one tenant or by all the tenants. Tallulah can live in the property by herself or share the property with John and Mary. Neither tenant can exclude the other. · Upon death, the interest of the deceased co-tenant will pass to the co-tenant's heirs. If Sam died, Larry would still hold 50%, Jill would own 25%, but Sam 25% would pass to whomever he designated in his will.How Can Joint Tenants Become Tenants in Common?Joint tenancy requires four unities. Unlike tenants in common, joint tenancy involves right of survivorship, meaning the interest held by each tenant will pass to the other upon death. The four unities necessary to create joint tenancy are: · Time. Each owner must receive title at the same time. · Title. Each owner must receive title on the same deed or document evidencing title. · Interest. Each owner receives the same proportionate and equal share of ownership. · Possession. Each owner has the identical right of possession.If one of the joint tenants sells or conveys the interest created in a joint tenancy to another person, the joint tenancy is broken, and a tenancy in common is created. Joint tenants cannot stop another tenant from breaking the joint tenancy. Dissolving Tenants in CommonTo dissolve the tenancy in common, one or more co-tenants can always buy out the other(s) or the property can be sold and the proceeds split per percentage of ownership. A partition action can filed. This involves going to court and asking to sell the property under court order and distribute the proceeds among the owners. When a co-tenant dies, you may see a partition action filed when an heir may want to sell and the other co-tenants do not. If the property is to be sold it may be wise to hire a Plano Realtor. A professional Realtor has access to the powerful Plano MLS system which is a great tool to help you get your home sold.Other Uses for Tenants in CommonIncreasingly, many properties are being sold under a tenants in common arrangement instead of a limited or general partnership. A builder, for example, may sell portions of a new project to a number of investors, who will all share an undivided interest in the property. If you are considering a venture of this nature, it is wise to seek the advice of legal counsel to thoroughly understand your rights and liabilities. The information contained in this article is not meant to be construed as legal advice and cannot be relied upon as such. It is a good idea to get the advice of a real estate lawyer any time you buy property to help determine the best way to hold title in your particular situation.