​When it comes to property ownership, tenants in common and joint tenants are two common ways multiple people can hold title to real estate. Here’s a breakdown of the key differences:

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1. Ownership Shares:

• Tenants in Common: Each owner has a specific, defined share in the property, which can be unequal. For example, one person might own 60% of the property, while another owns 40%.

• Joint Tenants: All owners have equal shares in the property, regardless of their financial contribution. Each person holds an undivided interest in the whole property.

 

2. Right of Survivorship:

• Tenants in Common: There is no right of survivorship. If one owner dies, their share of the property is passed on according to their will or state inheritance laws, not to the surviving co-owners.

• Joint Tenants: There is a right of survivorship. If one joint tenant dies, their share automatically passes to the surviving joint tenants, bypassing the deceased’s will or heirs.

 

3. Transfer of Ownership:

• Tenants in Common: Owners can sell, transfer, or will their share of the property to anyone, even someone outside of the ownership group, without needing the consent of the other co-owners.

• Joint Tenants: If one owner sells or transfers their share, the joint tenancy is typically broken, and the new owner becomes a tenant in common with the remaining owners.

 

4. Suitability:

• Tenants in Common: This is often preferred by individuals who want to hold unequal shares or have the ability to leave their portion of the property to their heirs.

• Joint Tenants: This is ideal for people who want to ensure that, upon death, the surviving owners automatically inherit the deceased person’s share without going through probate.

 

5. Legal Implications:

• Tenants in Common: The property can be passed down to heirs in a will. There is flexibility in deciding how the property is divided after death.

• Joint Tenants: The right of survivorship means there’s no need for probate for the deceased’s share, and ownership automatically passes to the surviving joint tenants.

 

Conclusion:

• If you're looking for flexibility in ownership percentages and the ability to pass on your share to someone other than the co-owners, tenants in common is the way to go.

• If you want a simpler transfer of ownership upon death with equal shares and no probate, joint tenancy might be the better choice.

 

Each option has its pros and cons depending on your estate planning goals and personal preferences!