Types of Ownership
Aside from sole ownership, title or ownership of property can be held in four different ways by two or more than two individuals. to obtain ownership of a purchase. Each individual should consider seeking legal advice separately.
- Joint Tenancy – In this type of ownership, each partner owns an equal share of interest in the property. This is the most common way for spouses to share property, because rights or interests of a deceased spouse are automatically transferred to the surviving spouse even if his or her will states otherwise. The surviving spouse becomes the sole owner.
- Tenants in Common – Under this type of ownership, each owner may hold a different share of interest in the property. If one owner dies his or her interest must be transferred according to his or her will. If there is no will, the interest is transferred according to the law of intestate succession.
- Ownership ‘In Trust’– This means that the owner registered on title may not be the true owner beneficially entitled to the property. He might be only a caretaker of the property or share the title ‘in trust’. Legal advice should be sought respecting ownership in trust.
- Ownership based on Partnership Agreement – When two or more people buy property together often one person may contribute a greater share of the purchase price and feel entitled to a greater share of proceeds of any later sale. A partnership agreement should be signed in this case after consulting with a lawyer. Advantages of a partnership agreement include:
- Written record of the share contributed by each partner to the purchase and the mechanism for dividing profit once the property is sold.
- Adjustments for any contributions made towards the property while it is being held. For example, any renovation costs might be adjusted for according to respective contributions to the same.
- Percentage of interest in property can be easily determined in case one partner wishes to sell the property, and the others do not.
For more information on obtaining title on a purchase or to book an appointment contact our legal experts at 905-405-0199.