_What is a Joint Tenancy or Tenancy in Common?

The ownership of property is often not quite a straight forward as it may seem. In law there are two types of joint ownership and it is here where confusion arises either as joint tenants or tenants in common. Tom Barrow, Knight Frank's Head of Country Valuations explains.

Tom Barrow September 27, 2017

In any case of joint ownership, one has to choose as to the type of ownership whether you buy, inherit or become a trustee of a property for someone else. The type of ownership does affect what you can do with the property and if your relationship with a joint owner breaks down or an owner dies.

In summary, the distinction is as follows:

Joint Tenants

Have equal rights to the whole property.
The property automatically passes to the other owner (s) on death of one of the owners.

Tenants in Common

Have different shares of the property as agreed.
The property does not automatically pass to the other owner (s) on death of one of the owners.

Joint tenants is a more common form of ownership between married couples. On the death of one party, the property passes automatically to the surviving spouse.

Tenants in common can be used for tax planning purposes, where there is a requirement to pass on a specific share to a third party.

It is possible to change from joint tenants to tenants in common and vice versa but it recommended that legal advice is obtained before implementation of any change.

It is particularly important for anyone who is unmarried and purchasing a property in joint names that they take legal advice as to how the property is owned from the outset. Whatever is agreed needs to be recorded and documented.

There are often disputes following death, when an ownership of property is not considered to have been correctly established. The jargon is a subtle distinction but in reality the difference needs to be clearly understood and noted by all parties.