Understanding the Difference Between Joint Tenants and Tenants in Common

handshake When buying property with others, you will encounter two primary forms of co-ownership: joint tenants and tenants in common. Understanding the difference between these arrangements is crucial as they affect how the property is managed, owned and transferred.

Joint Tenants

In a joint tenancy, all owners have an equal share in the property and possess an undivided interest. One of the key features of joint tenancy is the right of survivorship. This means that if one joint tenant passes away, their share automatically transfers to the surviving joint tenants, rather than being distributed according to a will or the laws of intestacy. This can simplify the transfer of ownership but may limit flexibility if the co-owners have different intentions for their share of the property. It results in a co-owners share in a property sitting outside their estate, meaning the terms of their will do not apply to their share of the property. It is therefore important that if a joint tenant wishes to transfer their share in a property to someone other than the other joint tenants when they pass away, the title is updated so that they instead hold the title as a Tenant in Common.

Tenants in Common

Tenancy in Common allows for a more flexible ownership structure. Each tenant in common holds a distinct, identifiable share of the property, which can be equal or unequal. For example, one tenant might own 60% of the property whilst another owns 40%. Unlike joint tenancy, there is no right of survivorship in a tenancy in common arrangement. When a tenant in common passes away, their share of the property becomes part of their estate and is distributed according to their will or intestacy laws. This arrangement provides more control over how an individual’s share is dealt with after their death, making it ideal for people who wish to pass their share on to specific beneficiaries.

Key Considerations

  • Joint Tenants: Simple transfer of ownership through survivorship, equal shares, and automatic succession.
  • Tenants in Common: Flexible ownership shares, no automatic transfer of ownership, and shares pass according to the deceased’s will.

Choosing between joint tenancy and tenancy in common depends on your personal circumstances and objectives for the property. Understanding these differences will help you make an informed decision that aligns with your estate planning and property management goals.

Our Wills and Estates team can guide you through deciding whether you should hold a property as a joint tenant or a tenant in common.

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