When two or more people own real property together, they are tenants in common. This type of tenancy doesn’t have to involve equal shares, and the interests of the tenants don’t need to be the same. In this blog post, we’ll discuss what a tenancy in common is in Texas and how it works. We’ll also look at some benefits of this type of joint ownership. If you’re considering buying a property with someone else, it’s essential to understand the tenancy in common agreement!
What is a Tenancy In Common in Texas? How Does It Work?
Tenancy in common is a form of joint ownership that exists when two or more people own real property together. The interests of the tenants don’t need to be equal, and they can accrue under different titles or at different periods. Often, family members who want to purchase property together use this type of tenancy.
Benefits to Tenancy in Common Include:
- Each tenant can leave their share of the property to whomever they choose in their will.
- Tenants can sell or transfer their interest in the property at any time.
- Tenants can have unequal shares in the property.
Drawbacks to Tenancy in Common Include:
- Tenants are responsible for their own share of property taxes, mortgage payments, and maintenance costs.
- If one tenant defaults on their obligations, the other tenants may be required to make up the difference.
- It can be challenging to remove a tenant from the tenancy in common agreement.
If you’re considering buying a property with others, it’s essential to understand all of the implications of tenancy in common before you sign any agreements. Work with an experienced real estate attorney to ensure you’re protected!
What Other Ways Can You Own Property with Another in Texas?
Tenancy in common is just one way that you can own property with others in Texas. You can also choose to hold the property as joint tenants with the right of survivorship or community property. Each type of ownership has its benefits and drawbacks, so choosing the one that’s right for your situation is essential. Check out these benefits and drawbacks for other ways to own property in Texas:
Joint Tenants with Right of Survivorship
“Joint tenancy with right of survivorship (JTWROS), like a tenancy in common, is a form of co-ownership that may involve two or more owners. However, a JTWROS must comply with a number of restrictions.” (1)
All tenants must sign the deed. Tenancy terminates only by the death of a tenant, with the surviving tenants automatically inheriting the property. In this arrangement, each tenant has an equal ownership interest in the property. One of the drawbacks of joint tenants with the right of survivorship is that transferring tenancy is challenging.
Community Property:
Community property is an ownership arrangement for married couples in which both spouses own an undivided interest in all community property. When a couple acquires property during the marriage, they generally own it equally as community property.
Community property includes real property. Community property divides equally between spouses upon divorce. Spouses can manage and dispose of community property as they see fit. Certain debts incurred during marriage might become the responsibility of both spouses, even if only one spouse incurred them.
If you’re considering purchasing property with another person in Texas, it’s essential to understand your options and choose the one right for you. Work with an experienced real estate attorney to ensure you’re protected!
How to Terminate a Tenancy in Common Agreement in Texas
There are a few different ways that you can terminate a tenancy in common agreement in Texas. The most common way is for all tenants to agree to sell the property or transfer their interests. Another way is for one tenant to buy out the other tenant’s interest. Finally, a tenancy in common can terminate by court order.
If you’re considering terminating your tenancy in common agreement, it’s essential to understand your options and choose the one that’s right for you. Work with an experienced real estate attorney to ensure you’re protected!
FAQs About Tenancy in Common Agreements in Texas
Q: Can an operation of law create a tenancy in common?
A: Yes. For example, if two people jointly own a piece of property and one person dies, the surviving owner will become a tenant in common with the deceased person’s estate.
Q: What are the rights of tenants in common in Texas?
A: Each tenant in common has the right to use and enjoy the property. Tenants also have the right to sell or transfer their interest in the property at any time. Finally, each tenant is responsible for their own share of property taxes, mortgage payments, and maintenance costs.
Q: Can tenancy in common be terminated?
A: Yes. The most common way to terminate a tenancy is for all tenants to agree to sell the property or transfer their interests. Another way is for one tenant to buy out the other tenant’s interest. Finally, a tenancy in common can terminate by court order.
Q: What happens if one tenant in common dies?
A: If one tenant in common dies, their interest in the property will pass to their heirs according to their will or state law if they don’t have a will. The other tenants will continue to own the property as tenants in common.
If you have questions about tenancy in common agreements in Texas, speak with an experienced real estate attorney who can help.
We Can Help
If you’re considering buying a property with someone else, consult an experienced real estate attorney who can help you understand your options. With the proper guidance, you can be sure that you’re making the best decision for your future!
Contact us at Jarrett Law for experienced real estate legal counsel. We can help you understand your options and ensure you’re protected! Give us a call today or fill out our online contact form to get started.
Recent Comments