Listed below are various forms of tenancy used when purchasing a property. If you need legal advice in making your choice, please consult an attorney.
- Tenants by the Entirety with the Common Law Right of Survivorship
Only husband and wife may hold title with this tenancy. Should one spouse predecease the other, title to the property automatically vests in the survivor. A lien or judgment filed against only one spouse will not be a lien against the property held with this tenancy, except for an IRS Tax Lien as per Federal Law.
- Joint Tenants with Common Law Right of Survivorship
Two or more people may hold title this way. As with Tenants by the Entirety, should any one owner predecease another owner(s), title automatically vests in the surviving tenant(s). A lien or judgment against any one owner could be a lien against the debtor’s interest in the property. (A married couple holding title this way are Tenants by the Entirety.)
- Tenants in Common
Any two or more people (including husband and wife) may hold title this way. Each person has an undivided fractional interest in the property. In the event of an owner’s death, his or her interest would not pass automatically to the surviving owner(s), but rather would vest in the heirs or devisees under his or her will, or pass by the laws of intestacy if no will existed.
- Individual Ownership
The property is conveyed to one owner who has the exclusive use and benefit of the property and right to dispose of it.