When two or more people purchase property together, they enter a legal agreement called a tenancy agreement. It specifies what will occur when one party becomes deceased. There are three categories of tenancy and each comes with separate rights and stipulations. Below are important facts on the different types of ownership relationships for MA property purchases.
Types Of Ownership Relationships
Tenancy in Common
Tenancy in common enables an party to maintain their ownership rights. It ensures that when one party dies, their ownership portion will be left to their estate. The inheritors thus take over the ownership in the property, essentially becoming a tenant in common with the surviving co-owners.
For joint tenancy, when an person becomes deceased, their ownership in the real estate is passed on to the remaining co-owners. In cases with multiple other co-owners, each one acquires an equivalent portion. There is typically additional wording for joint tenants describing time, possession, title, and interest in the home. All parties take ownership concurrently and by common means (i.e. will or deed). Each party also receives an undivided interest in the property as a whole and not just certain pieces of it.
Tenants by the Entirety
This tenancy applies directly to married couples. When one spouse passes away, ownership is acquired by the surviving spouse. Tenants by the Entirety can only be terminated by divorce, death or mutual agreement. One spouse may not give his or her portion to another party, but can transfer it to the other spouse.
More About Types Of Ownership Relationships For MA Property Purchases
It is important to understand the unique types of ownership relationships for MA property purchases.Each imparts varying rights to co-owners and heirs. For advice on choosing the appropriate tenancy for your real estate purchase, call an experienced attorney.