Joint Tenancy vs Tenancy in Common: What are the differences?
Co-ownership
Where property is purchased under the joint names of two or more people, a ‘trust of land’ arises. Where there is a trust of land, the legal estate and equitable estate of the property are separate. This simple means, under the land register, you will see the co-owners hold the legal estate as joint tenants. However, under the equitable estate (something you cannot see on the land register), the co-owners can be beneficial joint tenants or tenants in common. Find this confusing? Don’t worry, the diagrams and explanations below are designed to help you understand these concepts easier!
Joint tenancy
A joint tenancy arises whenever there is no indication that the owners own individual shares in property. For example, if a couple purchase a property under joint names without the addition of any other words, each of them hold the property jointly – legally and beneficially.
The most important characteristic of joint ownership is the right of survivorship. This means that when a joint tenant passes away, the surviving joint owner(s) is entitled to the whole ownership of the deceased’s share in the property. In other words, the surviving joint tenant will get both the legal and beneficial interest of the property regardless of what the deceased’s Will says.
Tenancy in common
If the co-owners make it clear that they do not intend to hold the property jointly, then they will hold is as beneficial tenants in common holding individual shares in the property. This can be done by stating that the property is held as “tenants in common”. The shares can be equal or unequal. For instance, one owner can own a 1/3 share and another owns 2/3 share, or they can hold 1/2 share each. Each individual owner can deal with his share separately, such as transferring his share to someone else or give a mortgage over it.
The “right of survivorship” does not apply where property is owned as tenants in common. When an owner dies, his share passes in accordance with his Will. If the owner has no Will, his share passes to the person(s) who is entitled to inherit his estate under the law of intestacy, not to the other co-owners.
Sources: BPP University
Tenancy in common
If the co-owners make it clear that they do not intend to hold the property jointly, then they will hold is as beneficial tenants in common holding individual shares in the property. This can be done by stating that the property is held as “tenants in common”. The shares can be equal or unequal. For instance, one owner can own a 1/3 share and another owns 2/3 share, or they can hold 1/2 share each. Each individual owner can deal with his share separately, such as transferring his share to someone else or give a mortgage over it.
The “right of survivorship” does not apply where property is owned as tenants in common. When an owner dies, his share passes in accordance with his Will. If the owner has no Will, his share passes to the person(s) who is entitled to inherit his estate under the law of intestacy, not to the other co-owners.
Sources: BPP University
