Sole Ownership vs. Tenancy in Common or Joint Tenants
There is more to owning a house than just being an "owner." One very important aspect of purchasing a house is how you will possess ownership, or how you will hold title to the property.
In New Jersey, there are three main ways to hold title, Sole Ownership, Tenancy in Common, or Joint Tenants with rights of survivorship.
If you are the only person intended to own the property then the correct way to take title would be through Sole Ownership, meaning you are the only one with rights to the property and you are the only one who can control it being sold.
Taking title becomes tricky when you are purchasing real estate with a spouse or another person. When you and another person hold title as Tenants in Common you both hold an equal part of the property. However, if one owner passes away their equal part of ownership can be passed to whomever he or she chooses.
Joint Tenancy with rights of survivorship is similar to Tenancy in Common, meaning you both own an equal part. However, with Joint Tenancy, if one owner passes away the rights to the property are passed to the other owner by operation of law without any other action being taken. This type of ownership is generally utilized by married couples unless they specify otherwise.
Understanding all the factors that come into play when purchasing real estate can be confusing. At theLevine Law Firm, LLC, attorneys with years of experience under their belt are available to help you through your real estate purchase and answer any questions you may have.