Tenancy is defined as an agreement between two or more home owners. It specifies what will occur when one individual passes away. There are three types of tenancy and they come with different rights and requirements. Below are definitions of the different types of tenancy relationships for MA home purchases.
Types Of Tenancy Relationships
Tenants in Common
Tenancy in common enables an party to preserve their rights to a property. It dictates that when one individual dies, their percentage of ownership will be handed down to their estate. The beneficiaries would acquire the portion of the property, lawfully becoming a tenant in common with the remaining parties.
Joint Tenancy
For joint tenancy, when an co-owner becomes deceased, their ownership in the real estate is acquired by the remaining parties. If there are multiple other co-owners, each one inherits an equal share. There is traditionally additional language for joint tenants describing time, possession, title, and interest in the real estate. The parties receive ownership simultaneously and by common means (i.e. will or deed). Each person also receives an interest in the property as a whole and not merely certain pieces of it.
Tenants by the Entirety
This type of tenancy is similar to joint tenancy but applies only to married couples. When one spouse dies, ownership is inherited by the surviving spouse. Tenants by the Entirety can only be terminated by divorce, death or mutual agreement. One spouse may not give his or her interest to another party, but can give it to the other spouse.
More About Types Of Tenancy Relationships For MA Home Purchases
It is useful to understand the unique types of tenancy relationships for MA home purchases.Each provides for different rights to survivors and heirs. If you are not sure about which tenancy relationship to choose for your real estate purchase, speak with an experienced attorney for guidance.
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