Generally, there are two types of legal relationships between co-owners: you can buy property as either tenants-in-common or as joint tenants.
Joint Tenancy
Joint tenancy invokes the right of survivorship, so that upon the death of an owner, the ownership interest of that owner passes in equal shares to the surviving owners. There is the option to register parties as joint tenants for equal or unequal portions of the property. This allows individuals to share in the joint tenancy right of survivorship for certain percentage interests in the Property.
Tenants-In-Common
Tenants-in-common, on the other hand, allows owners to have their share of the property form part of their estate, and upon their death, the asset is distributed based on their will. Tenants-in-common allows for proportional distribution of ownership.
Your purchasing group’s Legal Agreement and the Last Will and Testament of individual group members should be strongly connected. Both documents should be examined carefully by an experienced lawyer to ensure the purchasing group agreement has well-established, unambiguous terms for dealing with the death of any group member.
Next find out what you should include in your legal agreement starting with your Rights and Responsibilties!
How Do You Create Your Legal Agreement?
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What are all the Steps to Becoming a Co-owner?
Click on the links below for all the blog articles related to each step.
“A legal agreement protecting a co-ownership real estate purchase is commonly based on a tenants-in-common agreement and contains very clear instructions about what happens in the event of a partner’s death, divorce or default. ”
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