What is the difference between Tenants in Common and Joint Proprietors?
There are some key differences between Tenants in Common and Joint Proprietors which will specifically effect what happens when one person passes away or wants to sell their share of the property.
Tenants in Common
When a property is owned as Tenants in Common it means that two or more people co-own a property (either in equal or unequal shares). A tenant in common can sell their share in the property or give it away in a Will.
Ownership as Tenants in Common is usual for people with children entering second (or subsequent) marriages or investors buying property together.
When parties own properties as joint tenants, this means that all owners own the whole property together, rather than owning distinct shares. In this instance the right of survivorship applies. What that means is if one of the joint owners passes away, the property will automatically pass to the surviving owners. This happens regardless of any intention set out in a Will.
Commonly, Joint Tenants are husband and wife or couples in long-term relationships.
If you want to know whether you should hold a property as tenants in common or joint tenants please contact us on 9707 1155.