When two or more parties buy a home together, they start a legal agreement known as a tenancy agreement. It details what will take place when one owner passes away. There are several types of tenancy and they come with separate rights and stipulations. Below are definitions of the different tenancy relationships for Newton MA property purchases.
Tenancy Relationships
Tenancy in Common
Tenancy in common enables each individual to preserve their rights to real estate. It dictates that when one owner passes away, their percentage of ownership will be inherited by their estate. The heirs thus take over the portion of the real estate, essentially becoming a tenant in common with the remaining parties.
Joint Tenants
For joint tenancy, when an co-owner passes away, their ownership in the real estate is acquired by the remaining co-owners. If there are multiple other owners, each one receives an equivalent distribution. There is typically additional language for joint tenants describing time, possession, title, and interest in the real estate. The parties begin ownership simultaneously and by the same means (i.e. will or deed). Each party additionally an equal interest in the entire property and not just certain components of it.
Tenants by the Entirety
This category of tenancy is similar to joint tenancy but applies only to married couples. In the event of the death of a spouse, ownership is acquired by the surviving spouse. Tenants by the Entirety can only be ended by divorce, death or mutual agreement. One spouse may not give his or her portion to a third party, but can give it to the other spouse.
More On Tenancy Relationships For Newton MA Property Purchases
It is important to discern the unique tenancy relationships for Newton MA property purchases.Each bestows different rights to other parties and heirs. If you are unsure of which type of tenancy to select for your real estate ownership, consult with an experienced lawyer for advice. For more on the tenancy relationships for Newton MA property purchases, contact John Montanaro at Renaissance Realty at 617-484-2494 or giam24@aol.com.
