Joint Tenants Vs Tenants In Common
Joint tenants and tenants in common are two terms that are used frequently in the world of rental properties and owned properties. However many people think they both are the same and they in reality are quite different from each other. The meanings of joint tenants and tenants in common are completely different in legal terms.
Joint tenancy means that more than one individual, or any number owns the property in equal rights. While their rights mean equal their ownership to the property can vary. For example, one person could own 10 percent, while the other could own 30 percent and so on. The ownership is directly proportionate to the amount of investment that each person makes.
Tenants in common, however, hand are like shareholders. They invest in the property and earn the income with respective to the investment. There could be a trustee who is handling the property. The tenants in common do not have to be involved in the everyday affairs of the property. The rights to the property in this kind of arrangement are limited to the amount of shareholders also. The interest in the property that they hold is also very different. Also, in joint tenancy, if the owner dies, the rights automatically pass on to the legal heir. However, in the case of joint tenancy, the rights of the property at the death of a tenant are passed on to other tenants. So there is a fundamental difference between the notions of joint tenancy and tenants in common.
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