Joint Tenancy vs. Tenants in Common: Property Ownership
Many new homeowners wonder about the two common ways to take title. In this blog, we will explore the meaning of holding title as Tenancy in Common vs. Joint Tenants and how they differ.
Key takeaways
Key points
- Tenancy in common and joint tenancy are two common ways for two or more people to hold title together.
- Tenants in common have no right of survivorship. A deceased owner's share passes under their will or to their heirs.
- Joint tenants have a right of survivorship. The surviving owner keeps the whole property.
- The deed's wording decides which kind of ownership you have, so it pays to choose on purpose.
- Danilson Law helps owners across all 99 Iowa counties title residential, commercial and farm property the way they intend.
Tenants in Common: Co-Ownership with No Right of Survivorship
Tenancy in common impacts how property is inherited. When two or more individuals own an asset, such as a home, in equal parts, it is tenancy in common. However, there are no rights of survivorship. When one co-owner dies, the surviving owner(s) do not automatically receive the deceased co-owner’s interest. Instead, the property will be inherited according to the deceased co-owner’s will. If the surviving co-owner dies without a will, the Iowa laws of intestacy will govern who inherits that specific share of the property.
Tenancy in common is suitable when co-owners agree on goals and communicate clearly. However, it can also cause disagreements in the future. For instance, if siblings inherit a vacation home from their parents and own it as tenants in common, a unanimous decision is needed to sell the entire interest in the property. Deciding how to use or dispose of the property can be stressful and create fractures in family relationships.
Joint Tenancy: Co-Ownership with Right of Survivorship
Joint tenancy simplifies property transfer. When two or more people own a property, each individual owns a 100% interest in the property with the other joint tenant(s). Unlike tenants in common, the surviving joint tenant immediately becomes the owner of the entire property upon the death of the other joint tenant. This is known as the right of survivorship.
A familiar example of joint tenancy is a family home owned by a husband and wife. When the husband dies, the wife maintains complete ownership of the whole property. To effect the transfer of ownership, a simple affidavit of surviving joint tenant will need to be filed with the county recorder. With the assistance of a local real estate attorney, the paperwork is minimal and simple.
Titling property in joint tenancy can create a smoother transfer upon death of another joint tenant. When choosing how to title your property owned with another individual or individuals, it is essential to consult with an experienced real estate attorney. Factors such as ease of future transfers, potential heirs, and wishes after death should be taken into account.
Takeaway
Understanding the differences between Tenancy in Common vs. Joint Tenancy can significantly impact property ownership. Tenancy in common is suitable when co-owners agree on goals and communicate clearly, but it can also cause disagreements. Joint tenancy simplifies property transfer and creates a smoother transfer upon death of another joint tenant. To get expert advice on titling your property, consult with the experienced team at Danilson Law.
What do people ask about tenants in common vs. joint tenancy?
Survivorship. With joint tenancy, when one owner dies the surviving owner keeps the whole property. With tenancy in common, the deceased owner's share passes under their will or to their heirs instead of to the other owner.
Yes. Tenants in common can hold equal or unequal shares, as the deed states. Joint tenants hold equal, undivided shares.
For a deed signed since 2015 that names a married couple, Iowa presumes joint tenancy with right of survivorship unless the deed says otherwise (Iowa Code 557.15). For other co-owners, a deed that doesn't use survivorship wording is generally treated as a tenancy in common. We review your deed so you know which one you have.
Usually, yes, by signing and recording a new deed. Changing how you hold title can affect your heirs and your estate plan, so it's worth talking it through with an attorney before you sign.
No. Joint tenancy controls who keeps that property when one owner dies, but it doesn't cover your other property or what happens when the last owner dies. Talk with your attorney about how your deed fits with your will.
