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Writer's pictureColleen

Forms of Ownership

Updated: Jul 29

When you purchase property there are a few ways to own it.



Sole Ownership


If you are unmarried and buying property by yourself, then this type of ownership is called sole ownership or tenancy in severalty. When you here tenancy is severalty you can think of how the interest in this property is severed from all other persons aside from the single owner. For this type of ownership the title is held by one single individual or corporation. This type of property can be created by a deed (purchasing) or device (inherited by will), and can be disposed of by also a deed or device.


* If the single titleholder is married then this property is considered separate property.



Concurrent Ownership


Now if you are buying property with another person(s) there are 3 different options of ownership, which are decided upon based on 5 things called unities: Possession, Interest, Time, Title, and Person.


      Tenancy by the entirety: a form of ownership which is reserved to married couples only, because of the "person" unity which states that the co- owners own the property as an indivisible legal unit. This form of co-ownership is also the only form of ownership to require all 5 unities meaning owners have the same undivided right to possess the whole property, they own equal interests, they acquired the property at the same time and are on the same instrument of conveyance (title), and they are a legal unit. This form of tenancy can be bought, or inherited, and can be sold or dissolved in a divorce (the owners would become tenants in common), but it can not be willed because this property has something called right of survivorship which means the surviving co-owner inherits the deceased co-owners interest. Another part of this ownership says that neither co-owner owns a disposable interest. Meaning if your spouse has an awesome side business and they convert the old shed into a small work building to build or sell their work they cannot claim that legally as theirs or the businesses without your selling it to the business. Or if your spouses parents need to move into the guest house you converted your barn and they try to convince your spouse to sell them that guest house, your spouse cannot act without your full support, because you both own 100% of the property. Please understand this part: each of you does not own 50%, both of you own 100%, so technically when one spouse dies, the survivor does not inherit anything new since they already owned 100% of the property. This is why this form of ownership is reserved for married couples only. This form of ownership can  be created by inheriting or buying and can be disposed of through selling, or a divorce (which would simply terminate the form of ownership not the ownership itself of the house). This can not be willed due to the right of survivorship.



        Joint Tenants: ownership in which 2 or more individuals own undivided equal interests in the property and comes with the option of having the right of survivorship included or not. This type of ownership requires only four of the unities of possession. Both owners have equal undivided right to possess the whole property, and own equal interests in the property. They both acquired the property at the same time and are on the same instrument of conveyance (title or will), however in this form of ownership the co-owners are not an indivisible unit.  This form of ownership can be created by being bought or inherited, and can be disposed of by selling, but can only be willed if the right of survivorship is not included.




          Tenancy in Common: ownership in which two or more individuals own undivided interests in the property. If you are not married this is typically the ownership assumed unless you specify otherwise in the deed. All parties have the right to possess the land but they can have equal or unequal interests in the property meaning everything is not split down the middle. Typically the deed will be equally split to begin with unless specified otherwise. The tile does not need to be acquired at the same time nor do the owners need to acquire the title at the same time. This form of ownership can be created and disposed of though a sale, or a will, and right of survivorship is never included.

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