Let’s talk about one of the biggest overlooked decisions when buying a home: how you hold the title. If you're buying with someone else, whether your spouse, family member, or friend, your ownership structure can shape everything from legal rights to what happens after one of you passes away.

Joint tenancy is a popular choice, but it’s not the only one, and it’s not always the right one.

This guide breaks it down so you can confidently choose what’s best for you.

Key Takeaways:

• Joint tenancy creates equal ownership and rights of survivorship.
• This structure bypasses probate but comes with legal and tax implications.
• Ideal for married couples and partners, but may limit individual control.
• Other ownership structures, like tenants in common, may offer more flexibility.
• Legal and financial advice is key before choosing a title arrangement.

What is Joint Tenancy?

Joint tenancy means two or more people own a property together with equal rights and obligations. The defining feature is the right of survivorship; if one owner dies, their share automatically passes to the surviving co-owner(s), regardless of what's in their will.

Core Features of Joint Tenancy:

• Equal Ownership: Everyone on the title owns the same portion.
• Right of Survivorship: Ownership passes directly to the surviving joint tenant(s).
• Single Title: There’s one deed for all joint owners.
• Unity of Time and Title: All owners must acquire the property at the same time and through the same document.

Pros and Cons of Joint Tenancy

Pros:

• Avoids Probate: The property transfers immediately without court involvement.
• Simplicity: Easier for spouses or partners to manage property together.
• Shared Responsibilities: Mortgage, taxes, and maintenance are jointly managed.

Cons:

• Limited Control: You can’t sell or transfer your share without the other owner's consent in most cases.
• Creditor Risks: Creditors of one joint tenant can pursue the property.
• Tax Implications: Transfer at death may have capital gains or estate tax consequences.

Pro Tip:
Before committing to joint tenancy, discuss financial goals and future scenarios. You may find that tenancy in common or another title structure better supports your plans.

Joint Tenancy vs. Tenancy in Common

Each structure has trade-offs. For instance, tenancy in common offers more flexibility for estate planning and investment purposes, especially among unmarried buyers.

Real-Life Scenarios: Who Should Consider Joint Tenancy?

Ideal For:

• Married couples seeking simplicity and survivorship protection.
• Partners buying together with shared financial goals.

Not Ideal For:

• Business partners or investors need flexible ownership options.
• Unrelated co-owners with separate estate plans or heirs.

What Happens if a Joint Tenant Dies?

The surviving joint tenant(s) automatically inherit the deceased’s share. This bypasses probate entirely.

However, you should still have a will or trust in place. Joint tenancy doesn’t eliminate the need for estate planning, it complements it.

Heads up: If you refinance the property, or someone moves out, the title may need to be updated. Always consult a real estate attorney before making changes.

How to Establish Joint Tenancy?

To set up joint tenancy:

1. Work with your lender and title company.
2. Ensure all parties are present during closing.
3. Verify that the deed clearly states "joint tenants with right of survivorship."
4. Record the deed with your local county clerk.

Conclusion: Choosing the Right Path

Title isn’t just paperwork, it’s power, protection, and planning.
If you’re weighing joint tenancy, consider how it fits into your long-term goals. Talk to your real estate advisor or attorney before you decide.

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FAQs

What is the biggest benefit of joint tenancy?

The right of survivorship allows ownership to pass automatically to surviving owners without going through probate.

Can joint tenants have unequal shares?

No. Joint tenancy requires equal ownership shares. If unequal shares are desired, consider tenancy in common instead.

Is joint tenancy the same as community property?

No. Community property is specific to certain states and applies only to married couples. It includes different legal and tax rules.

Can a joint tenant sell their share?

Usually not without the consent of the other tenant(s). In tenancy in common, this is more flexible.

Do I still need a will if I have a joint tenancy?

Yes. While joint tenancy can pass on property without probate, a will is still necessary for your other assets and legal clarity.

Compliance Disclosures:

• This content is for educational purposes only and does not constitute legal or financial advice.
• Mortgage programs, ownership structures, and tax laws vary by state and individual situation.
• Be My Neighbor is a licensed mortgage company (NMLS #1743790).
• Please consult with a qualified real estate attorney or tax advisor to determine the best ownership strategy for your circumstances.
• Realpha and Be My Neighbor are independent platforms that may collaborate in customer engagement. No financial incentive is exchanged between these entities for referrals.
• Rates and APRs may vary. Visit the Consumer Financial Protection Bureau for current resources on mortgage terms and disclosures.