How do I know if my property is tenants in common?

How do I know if my property is tenants in common?

Speak with the solicitor who acted on your purchase to establish how the property is held and whether a declaration of trust is required. There should be a restriction on the Land Registry title if the property is held as tenants in common.

What is the difference between joint ownership and tenants in common?

Under joint tenancy, both partners jointly own the whole property, while with tenants-in-common each own a specified share. Buying a property as tenants in common also allows them to leave their share of the property to beneficiaries other than their partner when they die.

What happens when a property is held as tenants in common?

When a property is held as tenants in common the owners hold the equity in shares. It is possible to specify that they are to hold the equity in unequal shares. If no shares are specified and if there is no evidence to the contrary, it is assumed that the tenants in common hold in equal shares. Upon the death…

How are joint tenants entitled to the whole of the equity?

If a property is held as joint tenants then the joint owners are both entitled to the whole of the equity. To understand this, imagine that when buying a property, the joint tenants create an imaginary holding company (a company being a single legal entity made up of its directors) for the purpose of owning the property.

Where do joint proprietors register as tenants in common?

In order to protect the beneficiaries, when joint proprietors originally decide to hold a property as tenants in common a restriction should be registered at Land Registry. Where the transfer to the proprietors indicates they wish to hold as tenants in common this restriction will be registered automatically.

What happens when a property is held as joint owner?

Most commonly this happens when a property is held as tenants in common and is then transferred into the sole name of one of the joint owners. The effect of the restriction is to prevent a sale or other transaction (such as a mortgage) being registered unless it is by two or more trustees.

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