Every business professional will inevitably come across the term ‘joint tenancy’ in their line of work, whether it be within legal contracts or within the very real estate they own or which they seek to acquire. A joint tenancy is when two or more persons share ownership of a particular piece of property. What this essentially means is that the property ownership is held by all the tenants in common, with though individuals allowed to possess certain different rights within that shared ownership.
The Benefits of Joint Tenancy
Splitting property amongst tenants is a great way to share the risk and the rewards of a particular asset. It also allows for a situation where two parties can both hold and use a single part of a property or asset, with clear rights and assets allocated. These relevant benefits may include tax deductions, increased liquidity of the asset, strategic inheritance planning, and general ease of the sharing of a property.
The Rights of Joint Tenants
The rights that are held by those within the joint tenancy are important to understand before any legal decisions are made. These rights will change depending upon the underlying agreement and will outline the right to sell assets, transfer rights, and the right of survivorship. Moreover, the agreement can define other terms and make allowances for the dissolution of a joint tenancy in certain situations.
Understanding the Differences Between Joint Tenancy & Tenancy in Common
A tenant in common is similar to a joint tenancy in that two or more people have a stake in a particular asset or property. That being said, a tenancy in common allows for these tenants to disburse ownership as they see fit, while a joint tenancy agreement disburses the ownership in equal parts to the tenants in question. As such, the rights of each tenant in a tenancy in common agreement can be much more tailored.
Using a Joint Tenancy in the Modern Business Space
Using a joint tenancy can be a great way to foster relationships and ensure the protection of assets in the business world. It is therefore important to understand the rights and nuances of a joint tenancy, as well as the differences between it and a tenancy in common. With these considerations in place and the proper agreement in place, joint tenancy can be a great way to protect one’s investments in the modern business world.