Joint Tenants vs Tenants in Common

As college students, it is important to familiarize yourself with basic business and finance principles so that you can be prepared to make informed choices when necessary. One important concept related to business and finance is the difference between joint tenancy and tenancy in common.

Joint tenancy occurs when two or more people have equal rights to the same property. In joint tenancy, the right of survivorship is involved, meaning that if one tenant passes away, the remaining tenants automatically assume full ownership of the property. Thus, the remaining tenants do not need to go through probate or any other legal process to assume ownership.

Tenancy in common is similar to joint tenancy, but with one primary difference: the right of survivorship is not included. This means that if one tenant passes away, their interest in the property is passed on to their heirs. While tenants in common can own different percentages of the property, all tenants are responsible for paying their fair share of the mortgage, taxes, and other upkeep costs. Also, tenants in common can sell or otherwise transfer their individual interests in the property as they see fit.

It is important to note that while joint tenancy and tenancy in common are two distinct legal concepts with different consequences, they are often confused and misused. As a college student, it is important to understand these concepts so that you can make informed decisions if you ever end up owning property with someone else.