The word “tenancy” sounds a lot like the word “tenant,” which is another way we commonly refer to someone who is renting a property. In real estate, though, “tenancy” refers to ownership. There are several ways owners of a property can hold tenancy. These are the most common:
Tenancy in common: In this scenario, the owners each hold an interest in the property but the percentage each owns may not be the same. Owners can sell or transfer their share of the property as they wish.
Tenancy in entirety: This type of ownership is for married couples. It ensures that the property is automatically passed to the surviving spouse when one of the partners dies.
Joint tenancy: In this scenario, each owner of the property has an equal share. When the property is sold, the proceeds are evenly divided between the owners. When one of the owners dies, his or her ownership is transferred to the other owners.
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