What is Joint Tenancy and how does it differ from Tenants In Common?
The Difference Between Joint Tenancy and Tenants in Common is:
- The structure of the ownership and
- The percentage is given to each owner when the title is registered
- Overall how ownership is registered
- There are two owners
The Science behind the types:
In Joint Tenancy, each owner has an undivided share of the property.
In contrast, Tenants in Common ownership cause each owner to have a divided or fractional share.
This applies to properties owned by two or more people, and corporations as ‘tenants-in-common’. Additionally, each owner has a divided percentage in the ownership of the property.
Conversely, if the percentage is unspecified, the ownership is equal for each tenant-in-common.
Always ask your lawyer how they register your property when purchasing with another person.
This can affect the taxes paid down the road. If you are looking at purchasing for a family member please consider a Bare Trust Agreement with tenants in Common ownership.
Talk to a Mortgage Suite Licensed Agent/Broker today to ensure your Mortgage is done correctly!
