When multiple individuals buy a home together, they enter an agreement known as a tenancy agreement. It details what will take place when one individual dies. There are three categories of tenancy and they contain separate rights and requirements. Below are important facts on the different types of ownership relationships for MA & NH home purchases.
Types Of Ownership Relationships
Tenants in Common
Tenancy in common allows an individual to protect their rights to real estate. It specifies that when one party dies, their percentage of ownership will be inherited by their estate. The beneficiaries would take over the portion of the real estate, lawfully becoming a tenant in common with the remaining parties.
In joint tenancy, when an co-owner becomes deceased, their percent ownership in the real estate is passed on to the other co-owners. In cases with several other co-owners, each one inherits an equal portion. There is normally additional wording in joint tenancies specifying time, possession, title, and interest in the home. All parties take ownership at the same time and by the same methods (i.e. will or deed). Each person additionally an interest in the entire property and not just specific pieces of it.
Tenants by the Entirety
This tenancy applies specifically to married individuals. When one spouse passes away, ownership is inherited by the surviving spouse. This type of tenancy can only be ended by death, divorce or mutual agreement. One spouse cannot give his or her portion to another party, but can give it to the other spouse.
More About Types Of Ownership Relationships For MA Home Purchases
It is useful to discern the different types of ownership relationships for MA & NH home purchases.Each bestows different rights to survivors and heirs. For guidance on choosing the appropriate tenancy for your property purchase, speak with a real estate lawyer. For additional information on the types of ownership relationships for MA home purchases, contact Christopher Graves at Emery Federal Credit Union via phone at 978-376-5389 or email firstname.lastname@example.org to be referred to a reputable local agent.