What Is ‘Tenants In Common’?
Attorney Bradd S. Robbins was recently featured in an article about tenancy in common arrangements by U.S. News & World Report. Attorney Robbins is quoted discussing the basics of how Tenants In Common arrangements work, stating it’s essentially an “ownership of real property by two or more persons, in equal or unequal shares, who each have an equal right to possess the whole property.” If you don’t have time to check out the full article, read on for a quick summary about all you need to know about tenancy in common, and get in touch with us today for a free consultation.
Understanding Tenancy In Common
Holding the title of a property means that you have the actual right of ownership. But it’s possible for multiple parties to hold the title and take fractional ownership of real estate. This means you and the other parties would share ownership of a single investment property.
When multiple parties agree to a tenancy in common arrangement, they’re sharing the responsibilities of ownership. This means they both contribute to the mortgage, property taxes, and upkeep of the property. However, even though one tenant in common may have a smaller share, all tenants in common are able to use the property freely.
Tenancy In Common Versus Joint Tenancy
Tenancy in common isn’t to be confused with joint tenancy. In a joint tenancy agreement, the parties involved have right of survivorship. This means that if you were to pass away, your shares of the property would automatically be transferred to the other party or parties.
On the other hand, if you’ve agreed to a tenancy in common arrangement, you can choose to give your shares to an heir upon your death. Negotiating tenancy in common can be complicated, so it’s important to get in touch with Shelton real estate transaction attorneys that can walk you through the process.
The Benefits Of Tenancy In Common
There are benefits to a tenancy in common arrangement, the most notable of which is the division of any regular payments between the tenants. Tenancy in common means multiple parties are sharing the cost of the mortgage, taxes, and maintenance.
Tenancy in common arrangements are also useful if you want to protect your assets. If someone is injured on a property, the property owner can be held liable in the event of a lawsuit. However, if you create a limited liability corporation (LLC), and then use that LLC to invest in a property as a tenant in common, you’re further removing yourself (and your assets) from risk.
Titling a property as a tenancy in common is a solid practice if you’re considering investing in real estate with a partner that’s not a direct relation. Tenancy in common agreements are also helpful if you want to invest in real estate without shouldering the entire financial burden
Get In Touch With Willinger, Willinger & Bucci, PC Today
Real estate investing can be a tricky topic, but an experienced legal team can walk you through your options for tenancy in common and beyond. If you’re interested in learning more about how a tenancy in common arrangements can benefit you, get in touch with the Shelton real estate transaction attorneys at Willinger, Willinger & Bucci, PC. We can help you invest in property safely, and we can provide all the information you need before you decide to take full or partial ownership of an investment property.