Q. What is the difference between Joint Tenancy & Tenants in Common?
A. When you purchase a house, somebody has to go on Title. Joint Tenancy means that 2 or more people all own equal amounts of the property, with equal rights to use it. When one Joint Tenant dies, the property automatically transfers into the surviving Joint Tenant, thus not becoming a part of the estate of the person who died and is also not subject to any probate fees. Typically, most spouses prefer Joint Tenancy.
Tenants in Common is when 2 or more people own the property but not in equal amounts – for example 1/3 and 2/3, and they can sell or mortgage their share as they wish. If one Tenant in Common dies, their share becomes a part of their estate and is subject to probate fees. Tenants in Common is preferred for multiple family living and vacation properties owned two or more families.
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