Some people like to own the property wholly in their name, but some enter into partnerships. The Concepts of Joint tenants and tenants in common is mentioned under Co-tenancy of property law.
Both the terms come under Co-tenancy of property law, which here, allows individuals to own property in partnership.
Joint Tenants vs Tenants In Common
The difference between Joint Tenants and Tenants in Common is that of ownership rules. Though both come under Co tenancy of property law, Joint tenants are Partners in the property for equal shares, whereas If they are Tenants in common, they can have an unequal percentage in ownership of property.
When a property is owned by more than one partner with an equal share, then those partners are called joint tenants. That is all partners are entitled to a fifty-fifty share in the property.
For being joint tenants in a property, partners have to ensure certain unities conditions. These are four in number. Right Of survivorship is secured.
Tenants in common/TIC are the partners for distinct shares in the property. Though by default these partners own equal shares, the Interests of all the partners may be different in size.
When a person wants to break from TIC, They have to go through the partition of the property.
|Parameters of Comparison||Joint Tenants||Tenants In Common|
|Meaning||Joint Tenants are the owners with equal shares in the property.||Tenants In common are the owners with distinct interests or shares in the same property.|
|Right of Survivorship||Joint Tenants has the Right Of Survivorship.||Tenants In Common don’t have this Right.|
|Required conditions||There are four required Unities for being Joint Tenants.||No special conditions are required other than the owner’s will to be Tenants In Common.|
|Owner’s withdrawal||Withdrawal of any owner from the agreement, Breaks the whole agreement.||Withdrawal of any owner from the agreement does not break the whole agreement.|
|Death of an Owner||The death of an owner does not pass the ownership to their heirs.||The death of an owner can pass the ownership to their heir through a will.|
What is Joint Tenants?
Joint Tenants are a type of co-owners of the property under the concurrent estate. In this, owners enjoy an equal share of the property. Right of survivorship to joint tenants ensure the transferring of a dead owner’s ownership rights to other living owners.
For example, if X, Y and Z are three owners in a joint tenancy, and somehow X dies, then ownership of X will be automatically transferred to and divided equally between Y and Z who are alive.
So here, there is no requirement for indulging in court affairs for shifting of the deceased partner’s ownership rights.
Joint tenants require four conditions of unities, that are of Time, Title, Interests and Possessions. The absence of anyone can disrupt joint tenancy. While they enjoy a fifty-fifty sharing in the property, They also carry fifty-fifty liability of the property.
That means all owners are equally liable to pay for taxes, debts and maintenance.
Generally, when a married couple acquires joint tenancy in the property and unfortunately they end up divorcing each other, they may complicate the Joint tenancy too.
As in this, joint tenants are not permitted to back off from the agreement without ruining it all up.
What is Tenants In Common?
Tenants In Common are a type of co-owners of the property under the concurrent estate. In this, Owners acquire distinct interests and shares in the property.
Due to the absence of Right Of Survivorship to Tenants In Common, the Requirement for probate court is very necessary when some owner dies.
For example, If X, Y and Z are Tenants in Common, and somehow X dies with a will stating A to be given his share in future, Court affairs are needed to make the entry of A as Tenant in common for the property.
Here A will be entitled to the same amount of share which X enjoyed before his death.
Also, an owner, if wants, can withdraw his interests within tenancy in common by getting the partition of the property being done legally.
This gives rise to one of the biggest disadvantages of tenants in common that is, If owners are unable to agree upon terms of partition on their own, Then the court can order for sale of the property.
As Tenants in common hold one property, the tax and bills come on the single property and are not different for different interest holders. So it’s the Liability of all the owners together.
Main Differences Between Joint Tenants and Tenants In Common
- Though both are a type of co-owners in a property, Joint tenants are ones with more bondage than Tenants in common.
- Under Joint tenants, ownership of the deceased owner is transferred to living owners, whereas in another case, the heir of the deceased owner can get the ownership.
- The risk of uncertainty of agreement is more in Tenancy in common than in another one as, Owners can withdraw from Tenancy in common through the partition, but It is not possible in Joint tenancy.
- The role of probate courts are very less in Joint Tenants, but in Tenants in common its one of the main role.
- In joint tenancy, there is no importance for the owner’s will after death. As joint tenancy of deceased, dissolves after death for him, But in Tenants in common, its the base for further agreements.
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