If you co-own real estate with someone else, you can do this in two ways, as Joint Tenants (JT) or Tenants in Common (TIC).
JT means two persons, A and B, own equal shares of the property. If A dies, his share of the property goes to B.
TIC means one or more persons have an ownership interest in the property. If A dies, his share goes to his estate (the property to be distributed to his heirs).
If you’re purchasing a home as TIC, you should get a TIC Agreement prepared that sets out the terms of co-ownership. This can prevent some very bad property disputes later on. A TIC will lay out:
- Ownership shares
- Expenses contributions
- Intended use of the property
- Repair and maintenance
- Terms of sale and distribution of proceeds
- Dispute resolution mechanism
- Co-owner death/incapacity
- Method for buying out other co-owner’s interest
We can help you with this.