Joint tenancy is one way for 2 or more individuals to own genuine estate together. This special designation carries with it particular rights and responsibilities.
Basics of Joint Occupancy
Joint occupancy includes 2 or more individuals owning equal, concentrated shares in property. A joint tenancy requires unity of time, title, interest and ownership.
Absent any of these unities
Rights of Joint Tenancy
the joint tenancy reverts to a tenancy in common.
In some jurisdictions, if a deed is provided to two or more people, there is a presumption that the property is given as a joint tenancy unless the deed defines otherwise. In other jurisdictions, this is not the case. Some jurisdictions have a presumption that when a deed is provided to a married couple, there is a presumption of ownership as tenants by the entirety.
Anticipation of Joint Tenancy
Circumstances may exist in which a joint tenancy is transformed to a tenancy in typical. This might occur automatically, such as when joint renters die at the exact same time. If 2 or more individuals inherit the property from the last staying joint renter, they are thought about tenants in common, not as joint occupants.
Converting Joint Tenancy to Tenants in Common
In some scenarios, joint renters may decide that they no longer want to own the property together as joint tenants. In these cases, the joint occupant may ask the court to partition the property into distinct lots. Often, a partition may be one based on sale in which the co-tenants receive the proceeds of the sale.
Partitioning Joint Tenancies
If an individual owns property and after that names another person as a joint tenant with him or her, this transfer may be thought about a gift of half of the worth of the property. This may link gift taxes.
Joint Tenancy Gifts
In order to protect their legal and monetary interests, individuals might decide to consult with a property legal representative. She or he might have the ability to prepare the deed so that it consists of the needed language that shows the objectives of the celebrations. Additionally, she or he can recommend joint tenants on their rights to the property.