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A couple of terms that come up in questions and discussion I have relate to types of homeownership, specifically Joint Tenancy and Tenancy in Common. What are the differences?

Joint Tenancy

A simple one, each owner (tenant) owns the entire property.

If one owner dies the ownership of the property passes to the other owner or owners if there are more than one. You may hear the term ‘right of survivorship', this is important as this rule is specifically noted in a Joint Tenancy.

If the owner that died has a will and in it, they stated the property or their share of it was to be left to another person. that request will not be enforceable as the Joint Tenancy overrides that.

If an owner severs the tenancy, which each can do, it will revert to a Tenancy in Common.

Tenancy in Common

This one is a bit different and more flexible. Rather than each owner being considered the owner of the entire property they are owners of a specific percentage. So in the case of two owners each will own 50% of the property. Owners do not need to have an equal share, one could own 85% and the other 15%.

When an owner dies their share of the property does not automatically pass to the other owner or owners as it would with a Joint Tenancy.

The will of the deceased owner will determine what happens to that share. They may pass it to the other owners or someone else.

A recent example I have is where a couple sold homes they each had to buy one together. For the new home, they own 50% each and have left that 50% to the respective children.

When one dies their 50% transfers to their children. That does not mean the children can simply sell their share or force the sale of the property. Neither does it mean they can collect an income as 50% owner.

However, if they wanted to force the sale of the property in order to obtain the cash value and the remaining owner does not agree, it would need to be taken to court to obtain an order for sale. That is not guaranteed.

Which is best?

Normally married couples opt for a Joint Tenancy and those that have specific requirements for their share will opt for Tenancy in Common. That said, there is no straightforward answer as it is very much dependant on personal circumstances and professional advice should be sought.

The legal definition of Joint Tenancy here. And also for Tenants in Common here.