Different types of ownership are designed to fit into different life circumstances. Therefore, we’ll analyze the most desirable circumstances for choosing joint tenancy, tenancy in common, or tenancy by the entirety. Joint tenancy is a type of property ownership that is most commonly associated with real estate. Two or more people can share equal rights and obligations.
However, joint tenancy is the most desirable in cases when the death of one of the partners is expected or needs to be addressed. This is because this type of agreement creates a right to survivorship. According to it, after one party dies, their part of ownership is automatically transferred to the remaining party without dealing with the will. Because interest is divided equally, joint tenancy is the most simplified form of ownership.
Tenancy in common is different from joint tenancy mainly because of two reasons. The first one is that parties share different percentages of ownership instead of equal parts. Secondly, the survivorship rights for tenancy in common are regulated with bequeaths.
Therefore, tenancy in common is most desirable in a situation with sophisticated plans for ownership itself and its inheritance. It is suitable in cases where a dispute is not desired and would regulate any questions concerning the degree of ownership received after the party’s death.
Finally, tenancy by the entirety is a form of shared property ownership designed only for married couples. It is a powerful agreement according to which a spouse receives all the property that was shared with a party that died. Third parties, such as creditors, cannot enforce a lien on the property under a tenancy by the entirety. Therefore, this type of ownership is the best in cases when the property needs to be protected or one of the spouses has debt.