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What Are The Different Types Of Property Ownership?
When you buy a home, you become its owner. It’s the place where you live, grow as a person, and even raise your family. But what does it mean to own real estate? What type of ownership do you have over your property? The answer may be complicated. Ownership comes in many different forms, but there are some general principles that apply no matter what type of ownership you have. Each type of ownership has its own benefits and drawbacks. Here is an overview of the different types of property ownership.
As the name implies, when you have sole ownership of a property, you are the only owner. You have complete control over what happens to the property and can do whatever you please with it and do not need any approvals from tenants. If you want to sell it, rent it out, or live in it yourself, you can. The main advantage of sole ownership is that you don’t have to share the property with anyone else, so you don’t have to deal with disagreements or conflicting schedules. The downside is that if something goes wrong with the property, you are solely responsible for fixing it and paying for any repairs.
Joint tenancy is when two or more people own a property together. All joint tenants have an undivided interest in the property and are equal owners. each tenant is equally responsible for paying the mortgage, taxes, and other expenses associated with the property. An important aspect of this type of ownership is the right to survivorship which means If one of the tenants dies, their ownership interest is transferred to the surviving tenant or tenants. However, this needs to be included specifically in the deed or agreement that the parties make. The downside is that if something goes wrong with the property, you are equally responsible for fixing it and paying for any repairs. Furthermore, if a sale is initiated each tenant must agree to it.
Tenancy In Common
Tenancy in common is a type of joint ownership where each tenant owns a share of the property. This share can be equal or unequal, and each tenant has the right to sell or transfer their interest at any time. This kind of tenancy is commonly used for land ownership and commercial property. There are no survivorship rights included in this ownership type. If one tenant dies, their interest in the property is passed on to their heirs.
Tenants By The Entirety
Tenancy by the entirety is a type of joint ownership that is only available to married couples. In this ownership type, both spouses have an undivided interest in the property and neither spouse can sell or transfer their interest without the consent of the other spouse. if the couple divorces, they automatically become tenants in common. This kind of ownership offers survivorship rights, meaning that if one spouse dies, their interest in the property is transferred to the surviving spouse.
A Limited Liability Company(LLC) is a form of owning partnership where the title of a commercial real estate asset is held through an owning partnership. The most significant advantage of this form of ownership is it provides its members limited liability, reducing property ownership. Also, this type of ownership provides tax benefits to the owners. Members pay business taxes through their tax returns, and the Limited Liability company does not have to pay any taxes.
A corporation is a form of business ownership where the title to a commercial real estate asset is held through an owning corporation. The most significant advantage of this form of ownership is that it provides its shareholders limited liability, reducing property ownership. However, the liability is a downside of this form of ownership. For instance, it can be sued if a person sustains an injury on the premises of the corporation. Also, an asset can be acquired and sold by a creditor. Most owners take up liability insurance to mitigate this issue.
Let Us Help You with Your Property Matters
Real estate transactions are complex and can be difficult to navigate without legal assistance. Our team of experienced professionals at Stevens & Company Law Corporation can help you with all your property matters. We can help you navigate the process of buying or selling a property, as well as help you with any legal issues that may arise. Contact us today to learn more about how we can help you.
Title: What Are the Different Types of Property Ownerships? | Stevens&Company Law Corporation
Meta Description: For property owners, it is very important to know what type of ownership you have for your home or other real estates. Here are some types and how they work.