As you might be aware, real estate can be owned by more than one person. Two, three, or even more individuals or organizations can own a particular real estate, and the process of owning one is known as taking the title on a purchase. That being said, different ownerships exist depending on how the title is shared. And how the title is treated will be dependent on the type of ownership itself.
Today, we want to talk about the different types of ownership that exist and what you can expect from them:
1. Sole Ownership
As the name states, in a sole ownership situation, the owner is the only person who has ownership over a particular property. This can be done by the sole owner while they are alive, or the property can be passed on to their respective heirs upon death.
Sole ownership is the most simple and straightforward ownership. There are limited complications that can happen from this type of ownership, and it’s often used for residential properties.
2. Joint Tenancy Ownership
In joint tenancy ownership, two or more people own a property together. The people who own the property are referred to as tenants. They can be individuals, or they can be legal entities.
This type of ownership, while sounding complex, is considered to be a very simple and straightforward form, which means that it is often used with residential properties, much like sole ownership.
3. Tenancy in Common
Tenancy in common is another type of ownership. However, it differs from joint tenancy ownership because both parties own the property together, meaning that neither party is the other’s tenant.
Unlike joint tenancy ownership, however, tenants in common can own varying parts of the property, and they can even sell their parts. This type of ownership is considered to be more complicated than the other two, which is why it is typically used for commercial properties.
4. Tenancy By The Entireties
Tenancy by the entirety is a special type of tenancy that involves your spouse or partner, regardless of whether they are your partner in a civil union or not. Each has full rights to use it and occupy it, and each has the right to survivorship.
This type of ownership is used when a married couple is living on the property, and when one of the spouses dies, their spouse becomes the sole owner of the property.
If you’re looking to purchase a real estate property, then you need to be aware of the different types of ownership that they come in. And while you may be tempted to go with sole ownership, it can be prudent to consider the other types of ownership that exist, especially if you’re looking to purchase a commercial property. But of course, the type of ownership you opt for will be dependent on the situation you’re in. For example, if you’re alone buying a property, then, by all means, become the sole owner of it. On the other hand, if you’re buying a property with a spouse, then opt for tenancy by entirety!
But of course, if you need help deciding what type of ownership you should opt for, don’t be afraid to reach out to lawyers for legal advice!
Ontario Wills offers Ontario lawyers that can help anyone with their legal advisory needs. If you are looking for an estate lawyer, reach out to us today!