When multiple people buy property together, they enter an agreement called a tenancy agreement. It determines what will occur when one owner becomes deceased. There are three types of tenancy and each comes with different rights and requirements. Below are details on the ownership relationships for Newburyport MA home purchases.
Tenancy in Common
Tenancy in common authorizes an owner to protect their rights in a home. It specifies that when one owner passes away, their interests will be passed on to their heirs. The inheritors would acquire the ownership in the real estate, essentially becoming a tenant in common with the remaining co-owners.
With joint tenancy, when one owner dies, their portion of ownership in the property is transferred to the remaining co-owners. In cases with several other co-owners, each receives an equivalent distribution. There is usually additional wording in joint tenancies specifying time, possession, title, and interest in the home. The parties begin ownership simultaneously and by the same means (such as will or deed). Each also receives an undivided interest in the property as a whole and not just specific components of it.
Tenants by the Entirety
This method of tenancy is similar to joint tenancy but applies specifically to married couples. In the event of the death of a spouse, ownership passes on to the surviving spouse. This type of tenancy can only be ended by death, divorce or mutual agreement. One spouse may not grant his or her interest to a third party, but can give it to the other spouse.
More About Ownership Relationships For Newburyport MA Home Purchases
It is important to understand the distinct ownership relationships for Newburyport MA home purchases.Each bestows different rights to co-owners and heirs. For guidance on selecting the appropriate tenancy for your property purchase, consult a local attorney. For additional information on the ownership relationships for Newburyport MA home purchases, contact John Wells at Wellsco Realty at 978-518-1481 or email@example.com.