Tenancy is the legal manner that one takes title to real property. Individual buyers usually take title in fee simple. If there are two or more buyers, there are three common law forms of tenancy to choose from: joint tenants, tenants by the entirety, or tenants in common.
Joint Tenancy:
Joint tenancy is when family (unmarried) members take title of the property together. The joint tenants must obtain the same interests and title at the same time, as well as have identical rights to the property. This results in each joint tenant owning the entire property, not just a share, and each ownership is subject only to the rights of the other tenants.
Tenancy By the Entirety:
Tenancy by the entirety is similar to joint tenancy except with legally married individuals. The parties have an equal right of possession during their joint lives with the right of survivorship. Survivorship is when a spouse passes away and the property goes to the surviving tenant. This is popular for married couples as it protects them from judgements and liens as well.
Tenancy in common:
Tenancy in common is the ownership of a property by two or more individuals who have separate and divided interest in the property with no right of survivorship. This allows tenants to designate percentages of ownership interest and sell their interests without the consent of other tenants. Tenancy in common is popular for individuals or entities who take titles for business reasons or keeping property interest separate from other owners.
