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What Is Tenancy in Common in Real Estate?

There are numerous benefits to tenancy in common in Georgia, but there are a few drawbacks to remember as well. Faulkner Law Offices can explain. Call now!

Author: Stan Faulkner, Founder, Perigon Legal Services, LLC

Mr. Faulkner is a knowledgeable therapist and litigator with 15 years of experience, having held bar licenses in four states (Mo, Il, Ct and Ga). Stan Faulkner uses this experience and focuses his abilities in the pursuit of helping people in probate (trust and estate) matters, guardianships and conservatorships, estate preparation, organization disputes and agreement conflicts. Published on January 23, 2023.

While purchasing a residential or commercial property with somebody else, there might be numerous methods which it can be entitled. Tenancy in common might be a great choice if two or more individuals who belong or unrelated are purchasing residential or commercial property for investment or other purposes.

Tenancy in typical is a type of co-ownership where everyone owns a fractional interest in the residential or commercial property. This kind of ownership is frequently found in condominiums but can also exist in single-family homes and multi-unit house structures.

Since precise laws vary, speaking with a proficient property lawyer can help you comprehend Georgia residential or commercial property laws. They can help you figure out whether occupancy in common is a great titling choice for you.

See likewise:

Forsyth County Probate Court
Cobb County Probate Court
Medical Power of Attorney Georgia

How Does an Occupancy in Common Work?

In order to produce an occupancy in common, more than someone needs to be included, and they should have a concentrated interest in the entire residential or commercial property. They can then partition their interest into specified portions or portions, depending upon what makes good sense for them.

The co-owners may have unequal shares in the residential or commercial property. However, unless specific provisions of their agreement state otherwise, the individual with a more substantial share is not allowed to have preferential rights as to possession of the residential or commercial property.

When developing this type of residential or commercial property ownership, it is frequently smart to consult a reliable legal authority for guidance.

What Are the Legal Rights of Co-Owners in an Occupancy in Common?

Although comprehending the United States residential or commercial property law basics is handy, the laws referring to residential or commercial property ownership are a little different in every state. Therefore, understanding the marketplace's specific laws when buying and offering residential or commercial properties in the state can make your deals more simple and successful.

Per GA. Code 44-6-120, Tenancy in Common, the owners in a tenancy in common arrangement are considered to be co-owners of a residential or commercial property. Despite the fact that the shares may not be equivalent, all of the co-owners are entitled to full use of the residential or commercial property.

Unlike a joint tenancy, co-owners in a tenancy in common are not needed to assume residential or commercial property possession concurrently. They share residential or commercial property ownership and can sell those shares to other individuals. There is no right of survivorship, and the ownership rights of a specific share would pass to the beneficiaries of the co-owner upon their death.

Is Tenancy in Common a Good Idea?

Georgia recognizes tenancy in common as a type of co-ownership that allows numerous owners to set finishing portions of ownership. For example, if one owner wishes to sell their share of the residential or commercial property, it will be sold as a percentage (or fraction) of the entire and not simply as a single system like you would find with other kinds of ownership like joint tenancy or occupancy by the totality.

Tenancy in typical is a popular type of ownership for

- Condominiums

- Townhouses

- Other types of residences

In this type of ownership, each owner has a share of the residential or commercial property and a concentrated interest in the whole.

Tenancy in typical is a type of co-ownership with numerous benefits and disadvantages.

The advantages include that it allows people to decide what they wish to make with their share and provides a fantastic method to secure one's assets from future suits or creditors. Unless agreed otherwise, there is no requirement for the agreement to be signed by all the celebrations when a part of the interest is being offered. Whereas, when it comes to joint ownership, the sale of the residential or commercial property can not be fragmented.

Exist Any Disadvantages of Tenancy in Common?

The main downside of tenancy in common is that any renter could move their share to any other person without the approval of the other occupants. That implies that one of the occupants can choose to offer a share to someone the other renters do not like, and they have no legal recourse to stop the sale.

There can likewise be potential disagreements with other co-owners concerning the usage of the residential or commercial property and disagreements over just how much everyone must contribute towards expenses such as taxes and maintenance.

Moreover, in an occupancy in common, the right of survivorship does not use when the owner passes away. In a joint renter scenario with the right of survivorship, the residential or commercial property goes to the making it through spouse/co-owner. That is not true in the case of tenancy in typical. Since the residential or commercial property owners can bequeath their share to whoever they wish, the subsequent beneficiary might choose to offer their share.

Tenancy in Common Agreement

- Mortgage
- Taxes
Georgia Executor Fees
- Utilities
- Maintenance cost

A written arrangement can consist of an arrangement guaranteeing that the other owners can either get the opportunity to purchase initially, a right of very first refusal, or interview and choose prospective buyers together.

Can Tenancy in Common Be Dissolved?

In a tenancy in typical, all the co-owners have an equivalent interest and advantages with regard to the ownership of the residential or commercial property, which implies that they can liquify the tenancy in typical anytime by either selling their share or moving it to another person.

A proficient attorney with experience in the legal location of Georgia estate law can provide support and info.

Does Georgia Have Tenancy by the Entirety?

This is why, when buying residential or commercial property, it is very important that a closing attorney protect the owner's interest by drafting an extensive occupancy in typical contract. There, the lawyer can determine who will be accountable for things like the following:

An occupancy by the entirety is a legal kind of ownership. It produces a right of survivorship and is available to married couples just. The surviving spouse instantly acquires the departed tenant's residential or commercial property share if one of the joint renters passes away.

Georgia does not recognize occupancy by the entirety. Georgia has tenants in typical, which, as discussed above, refers to 2 or more people owning real estate as co-owners with rights to possession and satisfaction of the residential or commercial property.

How Can a Lawyer Help Someone With Issues Connected To Tenancy in Common in Georgia?

A lawyer can help somebody with occupancy in common concerns in Georgia by supplying legal advice and representation. Tenancy in typical contracts are normally more flexible than joint tenancy arrangements.

Contact a legal professional, such as those discovered at the Faulkner Law Offices, for valuable resources or to schedule a preliminary consultation. Call now!

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