Joint Ownership of real estate as tenants in common.
Agreement between Tenants in Common Contract Download
Whenever a person wants to buy a home, commercial lot or other piece of real estate, they might want to do so as a member of a group of like-minded investors. There are many ways of going about doing this, buying as tenants in common is one of the most often faced. A form of co-ownership or joint ownership, tenancy in common is a term used to describe how the property is owned, which party is responsible for what. Most commonly found among time-share or similar agreements, tenants in common is a way to divide the practical use of property easily and without complications.
- WHAT IS A TENANT IN COMMON? Anyone who buys a home or other real estate property and who chooses to be a partial owner can be a tenant in common. When entering a Tenants in common contract, each party agrees to certain responsibilities (usually some the cost and upkeep expenses) in return for the exclusive right to use the property at certain times.
- WHAT IS THE DIFFERENCE BETWEEN A TENANTS IN COMMON CONTRACT AND JOINT TENANTS? The biggest difference between joint tenants and tenants in common is the manner in which the property rights continue in the event of a death of one of the co-owners. In a joint tenancy, when a co-owner dies their share of the property passes to the other owners. In a tenancy in common, the share of the deceased co-owner will pass along to according to their last will and testament, or if they die without one, according to the rules of the state. The Tenants in Common Contract will usually state the co-owners have the exclusive right to decide how their share will be passed on after they die. This is the main reason tenancy in common is much more often found than joint tenancy.
- HOW DO I MAKE A TENANTS IN COMMON CONTRACT? To be sure your Tenants in Common documents are valid, you must state clearly your wish to enter such a co-ownership agreement. Each party who buys a part of the property must agree to the terms, and the agreement must be in writing. You will also need to ensure the specific portions of ownership and responsibilities to upkeep and maintenance are also spelled out clearly.
- CAN I SELL MY OWNERSHIP INTERESTS TO OTHER PEOPLE? Yes and no. The Tenants in Common Contract allows co-owners to sell or otherwise dispose of their portion of the property, but not without first offering their fellow co-owners a chance to buy their interest. This ‘right of first refusal’ is often included in such agreements to allow the co-owners a chance to match the price the seller would get from the prospective buyer. The manner of notice and acceptance of these offers is clearly stated and described.
Time-share agreements and other co-ownership of property can be much fun, and often a worthy investment. But before you enter such an agreement, you should be clear what the terms are. A joint ownership or tenants in common contract often comes with responsibilities, and you need to be sure the agreement is satisfactory before you sign.
Tenants in Common Contract available for immediate download