When you buy a home there are many factors to think about. How you and whomever you live with plan to title your home is one of these factors. A joint tenancy and a tenancy in common are merely two of several ways you can choose to title your home.
The first significant consideration is to know how titling your property impacts you and other interested parties. You will find that every title designation holds various rights and duty assignations. Sometimes, it can prevent others from filing lawsuits challenging ownership over a particular piece of property. Titling your home in a specific way can also involve how your part of the property is divided upon death. Would you rather the property automatically be given to your co-owner if you die first, or would you prefer to designate who gets your interest? Before choosing one titling means over another, these are factors to think about.
Anyone who is a co-owner is permitted open and equal access to the property through a joint tenancy, for example. If you have a meddlesome enough co-owner who will want to stop by a house you have agreed only one person will be residing in, this type of titling method can become a burden very fast. A right of survivorship also automatically attaches to a joint tenancy, so if you pass away first, your co-owner automatically gets your full interest in the property. This may work for some people, while it certainly will not for others. A joint tenancy automatically reverts to a tenancy in common as well, if any of several factors like time, title, interest or possession are broken.
The interest each owner has on the property is divided if you title your home as a tenancy in common, however. When each owner contributes a different amount of money to a property, the benefits are most starkly seen. As opposed to having a full and unlimited right to access the property as a co-owner would in a joint tenancy circumstance, in a tenancy in common, each co-owner owns a financially proportionate interest in the property to that which they invested.
There are other methods by which to title your home. Some states allow married couples, for example, to title their homes as tenants by the entirety. You will also come across expressions such as tenancy in years in the circumstance of landlord-tenant law. It is important to research all of the various options and understand the ramifications of each prior to making the best choice for your own personal situation and choosing a particular means by which to title your property.
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