Ownership in Common and Joint Ownership

Q. Write short note on ownership in common and joint ownership. [10 marks - 2018]

Ownership in Common and Joint Ownership

Ownership in Common

In the absence of a owner who may claim a specific area of the property, ownership in common may have unequal shares and different ownership interests. For example, Tenant A and Tenant B may each own 25% of the home, while Tenant C owns 50%. Tenancies in common also may be obtained at different times, so an individual may get an interest in the property years after one or more other individuals have entered into a tenancy in common ownership.

Joint Ownership

Joint ownership on the other hand, must obtain equal shares of the property with the same deed, at the same time. The terms of either a joint tenancy or tenancy in common are outlined in the deed, title, or other legally binding property ownership document. The default ownership for married couples is joint tenancy in some states, and tenancy in common in others.

Salient Features of Ownership in Common and Joint Ownership

1. Ownership in common allows partners to have unequal shares and therefore different ownership interests.

2. In joint ownership each tenant will hold equal share, carry out equal responsibilities and enjoy equal profit.

3. In ownership in common after the demise of one partner, there share goes to their heirs.

4. In joint ownership the deceased partner/s share goes to the surviving partner or partners.

5. In ownership in common, an owner can trade their shares without any restrictions. Joint ownership does not allow this trading without consent of other partners.