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What is joint ownership vs. ownership in common?

QUESTION:

My friends, Barb and Bob, own income-producing property in joint tenancy. My other friends, Carrie and Harry, own their income-producing property as tenants in common. What's the difference?

ANSWER:

Real estate ownership may be single ownership or multiple ownership, also called joint ownership. "Single ownership" is self-explanatory. Joint ownership is more complicated.

"Tenancy in common" and "joint tenancy" describe two forms of joint ownership by two or more persons.

Tenancy in common means the multiple owners each hold undivided interests to their specified portions of the whole. This type of ownership permits ownership in unequal shares, and there is no right of survivorship. Each share is transferable, devisable and inheritable.

While the owners may hold different shares in the property, each owner is entitled to possession of the whole.

The shares of ownership may be created at different times. Also, the property can be partitioned according to each owner's share of the whole if everyone agrees.

If the deed does not state the type of ownership for multiple owners, they will be presumed to have taken title as tenants in common, not as joint tenants.

The main feature of joint tenancy is the right of survivorship. When one of the owners dies, the survivor(s) become the sole owner(s).

This survivorship right exists only if the joint tenancy is created to meet all Florida requirements. These requirements are commonly referred to as the four unities of time, title, interest and possession plus the modern law requirement of a clear expression of an intended right of survivorship.

For unity of time to exist, all ownership must occur at the same time or as the result of one event such as a purchase.

Unity of title requires that there be only one instrument of title listing the parties in the ownership.

A unity of interest means that all the owners hold estates of the same type and duration.

And for unity of possession, all owners must have an equal right to possess the property.

Without a clear and explicit expression of survivorship, a transfer to two or more persons will be presumed to create a tenancy in common.

This information is not intended as specific legal advice to anyone and is based upon facts that change from time to time. Individuals should seek legal counsel before acting upon any matter involving the law.

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