What Is a Joint Tenancy?
One issue that occasionally arises when buying or selling property is joint tenancy. Most commonly, when a married couple are going to buy property they often decide to do so as a joint tenancy. Conveyancing solicitors in Brisbane are often asked about joint tenancies, since many people are unclear about what they entail. If you're going to be purchasing property soon and would like to know more about joint tenancies, read on below for more information.
The Basic Concept of a Joint Tenancy
The basic concept behind a joint tenancy is that it gives each party an undivided share or interest of the property in question. Both parties, then, have an equal amount of power over what the property is used for and about what happens with it. The reason that most married couples choose to enter into a joint tenancy is because they are supposed to do everything as a team, and a joint tenancy is a natural extension of that.
Right of Survivorship
One of the most important aspects of a joint tenancy is the right of survivorship. With a joint tenancy, any interest that one party has in a property passes on to the others in the joint tenancy in the event of their death. In other words, if you and your spouse purchase property as a joint tenancy and your spouse dies, his interest is passed to you. It cannot be bequeathed to any heirs and it cannot be included in a will or as a part of his estate.
Many couples purchase property together for investment purposes. Many conveyancing solicitors in Gold Coast stay quite busy helping such couples out with their investment properties. Another benefit of a joint tenancy is that it gives both parties equal entitlement to any rents or profits that are produced from the property. Both people benefit equally, then, and one cannot make claim to a greater share than the other. This helps keep disputes and disagreements to a minimum, but it also means that joint tenancy must end in the event of a divorce or other separation.
Is a Joint Tenancy Right for You?
If you've been thinking about investing in property, you may have to consider a joint tenancy. This holds especially true if you are married. It should be noted, though, that a joint tenancy can involve two or more people - it isn't restricted to just two. In the event of a divorce or another serious change in circumstances, it is usually best to switch a joint tenancy over to a tenancy in common, since most divorced couples end up splitting up their assets during the process. The best thing to do is to seek advice from a lawyer about the issue.