Understanding the common ways that title can be held is important to understanding the rights of the owners of any shares in a property. We will cover three common types today.
Tenants in Common
One way that title can be held is as Tenants in Common. With tenancy in common the tenants own individual interest or shares to the property. In this case, if one tenant passes away their shares will automatically be passed on to his/her heirs.
The second way to hold title in Maryland is by Joint Tenants. Unlike the Tenants in Common, there is a right of survivorship. This means that if one of the tenants were to pass away the deceased tenants share would be passed on to the surviving tenant. There are four requirements that must be met in order for a valid joint tenancy to be formed.
- TIME: Both tenants must have acquired the interest of the property at the same time.
- TITLE: The tenants must have acquired title through the same instrument which is typically a deed.
- INTEREST: The tenants must have equal interest to the property.
- POSSESSION: Both tenants must have equal rights to possess the property.
Tenants by Entirety
The third way title can be held in Maryland is Tenants by Entirety. This type of title is only for married couples. Similar to joint tenancy there is a right of survivorship, however, the parties cannot convey or petition the property without the consent of the other. If a couple is ever to get divorced the tenancy by entirety will terminate and convert to a tenancy in common.
In conclusion, at Davis, Upton & Palumbo LLC, our attorneys and staff know Real Estate. We also represent many individual property owners when real estate issues arise. To learn more about our Real Estate services click here or contact us today.