Many times when I am at the closing table with buyer clients the attorney will ask how the buyers would like to hold the property. There are 3 basic forms of co-ownership in Massachusetts Real Estate Law. Tenants in common, Joint Tenancy or Joint Tenancy with Rights of Survivorship and Tenants in Entirety. Quite frankly the closing can be a bit overwhelming but many buyers do not think much of the legalities in co-ownership and they do what the lawyer says. Here are some basic definitions of the common ways to hold real estate with more than one owner.
Here are basic definitions of co-ownership, bear in mind Massachusetts Real Estate Law goes into more detail of each. Also laws very from state to state. It is definitely worth talking to an attorney for a few minutes so your ownership interest is handled in the manner you intended.
Tenants in Common
Each owner’s proportion is distributable as part of the owners estate, so that if one of the account holders dies, that owner’s heirs are entitled to that proportional share of the ownership. Individual ownership can be transferred freely.
Joint Tenants with Right of Survivorship
In the case of a joint ownership, on the death of one owner, ownership of the home is transferred to the remaining owner or owners. Individual ownership can be transferred freely.
Tenants By Entirety
I wanted to bring up this topic as I recently had a situation where a client wanted to sell and the co-owner had recently passed away. The co-owners held the property as Joint Tenants with Rights of Survivorship. Luckily being in the business as long as I have, I have a number of attorneys that will take a phone call from me to give me legal advice. I had a good idea of what was going on but wanted to verify with the attorney my thinking was correct.