Shared property ownership can also be referred to as co-ownership, or joint ownership. Any of these terms can be used to describe real property. All land and fixed immovable structures are considered to be real property, such as an apartment or home. “Real estate” and “real property” may be used interchangeably, as they refer to the same thing.
Real property may include anything that is permanently located on, within, or under the land. By definition, real property may include oil, gases, and minerals found under the land. Another term commonly used to refer to real property would be “premises.”
Such property can be jointly owned by two or more people; meaning, all of the people involved hold title to the property. Joint ownership of real property can be categorized as the three most common types of ownership:
Tenancy in common distributes the shares of property according to how much each person contributed to the purchase of the property. When one owner dies, their shares of the property are passed on to their surviving heirs.
Joint tenancy differs in that when an owner dies, their shares go to the other property owner(s). This is referred to as the right to survivorship. In order for an ownership arrangement to be considered joint tenancy, all of the following requirements must be met:
Tenancy by the entirety only applies to married couples, as the sale of the property is prohibited without the consent of both spouses. When one spouse dies, the right to survivorship is invoked and their shares go to the surviving spouse.
Your legal rights and obligations as a property owner will largely depend on the type of co-ownership agreement you have entered into. Generally speaking, the default rule for co-ownership is tenancy in common. An example of this would be if an unmarried couple is living together in a home. Courts generally presume that that property is co-owned by the couple as a tenancy in common.
Whether you can force the sale of a jointly owned property may depend on the state in which the property is located. An example of this would be how in Texas, doing so is possible through a court-ordered partition. This legal term refers to the division of real property among joint owners. The court may order one of two types of partition:
The process involves a lawsuit which could result in considerably large expenses which are to be shared by all of the property’s joint owners.
What will happen to the ownership interest of a deceased co-owner depends on the type of co-ownership agreement that was established.
Co-owners and spouses under a tenancy by the entirety should keep in mind that even when there is a will with contrary provisions, right of survivorship could be a detriment to the enforceability of those will provisions.
When transferring or selling a jointly owned property, if there is no right of survivorship, a co-owner is generally free to transfer their property interest. Essentially, when a co-owner sells their own interest, the buyer becomes a new co-owner so that tenancy in common continues. What this means is that unlike a joint tenancy, a tenancy in common is freely transferable.
This sort of property transfer may happen in many different ways, including:
However, it is important to keep in mind that a co-owner cannot transfer the ownership rights of other co-owners without permission. Additionally, if there is a right to survivorship, one co-owner or spouse cannot unilaterally convey the property without permission or consent of the others involved in the co-ownership.
By being prepared and informed, joint property ownership disputes can be more easily avoided and/or resolved. Tenancy in common has several distinct characteristics that should be considered, such as:
Joint tenancy and tenancy by the entirety require four unities:
It is also worth discussing that a tenancy by the entirety can be terminated in several different ways. Although there is no way for one co-owner to do so on their own, some examples of how the entirety can be terminated include:
In terms of tenancy by the entirety, co-ownership is only available to legally married spouses, not cohabiting couples. It is important to note that not all states recognized tenancy by the entirety, and states that do may or may not provide recognition for married same-sex couples.
If you have any questions about legal issues with jointly owned property, you should consult with an experienced local property lawyer. Because much of property law varies from state to state, an area attorney will be best suited to helping you understand your state’s specific laws regarding the matter. An attorney can also represent you in court, as needed, should any legal disputes arise. Finally, an attorney will be able to help guide you through the transfer or forced sale process.
LegalMatch Legal Writer
Travis earned his J.D. in 2017 from the University of Houston Law Center and his B.A. with honors from the University of Texas in 2014. Travis has written about numerous legal topics ranging from articles tracking every Supreme Court decision in Texas to the law of virtual reality. In his spare time off from the legal world and quest for knowledge, this 3rd degree black belt and certified instructor aspires to work with various charities geared towards bringing access to entertainment and gaming to all persons. Read More
Travis earned his J.D. in 2017 from the University of Houston Law Center and his B.A. with honors from the University of Texas in 2014. Travis has written about numerous legal topics ranging from articles tracking every Supreme Court decision in Texas to the law of virtual reality. In his spare time off from the legal world and quest for knowledge, this 3rd degree black belt and certified instructor aspires to work with various charities geared towards bringing access to entertainment and gaming to all persons.
LegalMatch Legal Writer