Thursday, October 29, 2009

What is the best way to protect myself if I'm buying property with another person?" Valarie Jacobs, MD DC VA Real Estate

"What is the best way to protect myself if I'm buying property with another person?"

There are a number of different options for taking title to a property. When one or more people purchase a home it is called "concurrent ownership interest" . Each person has interest in the "entire" property.

The three forms of concurrent ownership:

1. Joint Tenants
2. Tenants in Common
3. Tenants by the Entirety


Joint tenancy is when two or more people own an entire undivided piece of property. Joint Tenancy has a "Right of Survivorship". This means that if one on the owners dies the other owner continues to have an undivided ownership interest in the home. If there is more than one co-owner, then the remaining owners continue to have an undivided interest in the property until only one owner remains. The last remaining owner gains full ownership of the property.


Tenants in common is when two or more people own property and there is no Right of Survivorship. Each owner has a specific interest in the property. This interest in the property can be transferred by inheritance and this interest can also be sought after by creditors. Each owner has equal share of the entire property.


Tenants by the entirety can only be held by husband and wife owners. It is very similar to Joint Tenancy with Right of Survivorship. Neither husband nor wife can sever ownership in the property without the others consent, so neither can sell any part of the property without the consent of the other. Creditors are also banded from coming after any interest in the property. Co-ownership in property can only be cancelled by death of either spouse, divorce or mutual agreement.

Knowing the different methods of taking title to property, can serve to be very valuable when purchasing real estate. This should help you make a wise decision when purchasing your property.

"Feel free to call if you have any questions or concerns regarding real estate. I love helping!"

Valarie Jacobs
"The Real Estate Physician"
Visit My Website
301-476-8005 offfice
202-528-4761 cell