So you have just signed contracts to purchase a property with somebody else, this person could be anybody, your partner, friend, sibling, neighbour, parent of Joe from the down the street. The solicitor then asks you how would you like to register your ownership on the title. You have to option to go Joint Tenants or Tenants in Common. The main difference between the two is what happens to the share when one of the owners die. Depending on your relationship with the person you are buying the property, you may choose either option. Below is a quick explanation of the difference between the two options.

Joint Tenants

Joint tenants are where you hold the title together and do not have a share as such in the property. In the event that one of you die the property will be transferred to the other person regardless of what is contained in your Will. This option is common for a married couple or for a couple in a relationship as usually, they share the ownership of their assets.

Tenants in Common

Tenants in common are where both owners hold an individual share of the property. You can choose how much each of the owners holds of the property. e.g. one owner can hold 70% ownership and the other holds 30% ownership. In the event that this option is chosen each owner will be able to choose who their share will be given to in their Will when they die. Further, each owner will be permitted to sell their share of the property to another person.

When purchasing a property it is important to engage with a lawyer to discuss what the best property ownership option is for you. They will consider your current situation and what your wishes are for when you die and recommend a strategy to protect your assets. Also, this is a good time to review your existing Will or consider getting a new Will drawn up by a professional. The benefit of using a professional is that they will offer you advice on how to set up the Will in accordance of the law and they may advise on things you may not have thought about, like who gets your Tamagotchi collection.

Owning a property will be one of the biggest assets of your life, let’s make sure it’s done correctly.

It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate. Donald Trump

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