Tenancy is an ownership agreement among two or more parties who buy property together. It dictates what will happen when one owner dies. There are several kinds of tenancy and each comes with different rights and stipulations. Below are details on the three types of ownership relationships for Burlington MA real estate purchases.
Types Of Ownership Relationships
Tenancy in Common
Tenancy in common allows an owner to maintain their rights in a home. It specifies that when one owner passes away, their interests will be passed on to their heirs. The inheritors would take over the ownership in the real estate, lawfully becoming a tenant in common with the remaining co-owners.
For joint tenancy, when one owner passes away, their percent ownership in the property is acquired by the remaining co-owners. If there are several other co-owners, each receives an equal distribution. There is typically added language in joint tenancies specifying time, possession, title, and interest in the real estate. All parties take ownership simultaneously and by the same method (such as will or deed). Each also receives an equal interest in the entire property and not just certain components of it.
Tenants by the Entirety
This tenancy applies directly to married individuals. In the event of the passing of a spouse, ownership is inherited by the surviving spouse. This type of tenancy can only be ended by death, divorce or mutual agreement. One spouse may not give his or her interest to another party, but can give it to the other spouse.
More On Types Of Ownership Relationships For Burlington MA Real Estate Purchases
It is important to understand the different types of ownership relationships for Burlington MA real estate purchases.Each bestows different rights to co-owners and heirs. If you are unsure of which type of tenancy to select for your property purchase, consult with a local attorney for advice and guidance.