When two or more individuals own real estate there are three different ways to hold title: tenants in common, joint tenants, or tenants by the entirety. Regardless of the type of tenancy, each individual owns an undivided share of the entire property.
Tenants in Common: Individuals that own an equal or unequal percentage interest in the real estate. If one owner dies, their percentage interest automatically passes to their heirs. For example, if A and B own property as tenants in common and A passes, A’s heirs will receive her 50% interest and B will keep his 50% interest.
Joint Tenants: Individuals that own an equal percentage interest in the real estate. If one owner dies, the surviving owner has the right of survivorship and will receive the deceased owner’s percentage interest. For example, if A and B own property as joint tenants and A passes, B will get A’s 50% interest and will thus own 100% of the property.
Tenants by the Entirety: Married couples in which each spouse owns an equal 50% interest in the real estate. Like joint tenants, if one spouse dies, the surviving spouse has the right of survivorship and will receive the deceased spouse’s 50% interest. For example, if Spouse 1 and Spouse 2 own property as tenants by the entirety and Spouse 1 passes, Spouse 2 will get Spouse 1’s 50% interest and will thus own 100% of the property.