Whilst acquiring a property can be a dream come true, some decisions might come back to haunt you in future. One of these decisions is your right of ownership.
The two main categories of property ownership in conveyancing law are sole and joint ownership. Conveyancing lawyers in Wellington should be part of everybody’s property acquisition team. These experts will help you determine the best category of ownership, depending on your needs.
Here are the common types of joint ownership you can choose from:
Joint Tenants with a Right of Survivorship
With this ownership title, all tenants have an equal ownership interest. The tenants contribute equally to the property maintenance and share profits equally. When one tenant dies, his or her interest is distributed evenly among the surviving tenants. The estate is out of the scope of any legal dispute challenging the deceased’s will. Most couples prefer joint tenancy because of the right of survivorship.
Tenants In Common
In this title, each tenant holds a distinct interest in the whole property. The tenant can mortgage his or her share of the property, sell it or withdraw without the other members’ consent. When a tenant dies, his or her property share passes on to the beneficiaries. Tenancy in common is a typical form of property ownership for business partners.
Joint Tenancy in Entirety
Only a married couple can create this estate. Proof of marriage is one of the requirements for this type of property ownership. Each spouse owns half of the property and none can sell it without the other’s consent. Upon the death of one spouse, the title automatically transfers to the surviving spouse.
Community property ownership also exists solely in marriage. Any assets obtained during marriage are considered part of the marriage ‘’community’’ and each spouse has an equal share. The spouse chooses who should inherit his or her property share upon death.