Tenants in common consists of an arrangement in which the owners can possess equal or different percentages of the property. This is very different than joint tenancy where all of the owners must have an equal percentage. No matter how many people own the property, the percentage must be divided equally for everyone involved whereas tenancy in common allows for different owners to own different shares meaning one person can have a much higher percentage than a fellow owner.
A deed is always involved for tenancy in common and this is how a previous owner transfers their percentage to an heir or buyer. Tenancy in common is different than joint tenancy in that people can come to ownership at different times because the property can be owned by different people who decide to pass on or sell their percentage at different times. This part of tenancy in common is tricky because in many cases the property can at some point be owned by people who do not know each other by coming into ownership from different owners who themselves may have not known one another.
For example, if an owner who owns half the property passes away and leaves his share to their child, that child could be co-owners with a much older person who still owns the other half and is a complete stranger. That stranger can then pass on his half to whomever he wants at any time down the road which would result in co-owners who not only don’t know each other, but who came into ownership years apart.
Joint tenancy is simpler in that aspect as all owners must come into ownership at the same time from the same deed. Another big difference is that when one owner dies in a joint tenancy arrangement, their percentage is inherited by the remaining joint tenant or tenants. Joint tenancy does allow for an owner to sell their interest in the property but should this occur, the arrangement then turns into a tenancy in common.
Property arrangements can be very tricky and it is always best to know all of the information before setting up property ownership. Homestead Law can guide you through all of the fine details to ensure you are making the best decision for you. Their highly experienced real estate lawyers specialize in estate planning and notary public so before you make up your mind regarding such an important issue, consult Homestead Law for their professional guidance and opinion!