Joint Tenancy
Candlefocus EditorIn joint tenancy all tenants have an equal interest in the property, thus they all share the same obligations and benefits that come with ownership. As such, they could decide together over specific matters like who makes the decisions regarding the upkeep or maintenance of the property. They may also specify how the profits would be divided or shared in the case of a tenants’ increase in equity in the property or in case of a sale.
An important characteristic of joint tenancy is that it enables parties to terminate the ownership unilaterally. In other words, one tenant can decide to end the joint tenancy without the consent and acceptance from the other tenants. This is particularly important in cases where one tenant wishes to end their ownership without having to wait for the agreement of the other tenants which may be difficult or even impossible if the other tenants are not readily available.
The distinction between joint tenancy and tenancy in common is significant. Tenancy in common does not offer survivorship rights, which means that when a tenant dies the ownership goes directly to their heirs upon their death.
In summary, joint tenancy is a form of property ownership specifically designed for two or more tenants to share the costs, responsibilities and benefits of ownership equally. This form of ownership allows parties terminate their rights unilaterally, as oppose to tenancy in common which transfers ownership to the tenant’s heirs upon their death.