If you are thinking of buying a property with someone else, whether friend or family, you will need to know the difference between tenants in common and joint tenancy and which one is best for you.
This means each party has equal ownership of the whole property. There is a limit of 4 people that can be involved in this type of arrangement. On death, the property is immediately transferred to the surviving party.
Tenants in Common
This is a bit different as all parties have equal rights but perhaps a different proportion. For example, one party might have a 60% interest, while the other has 40% depending on how the deposit was split and who pays the larger share of the mortgage. When this type of arrangement is desired, a document known as a Deed of Trust must be drawn up. This sets out, in legal and binding terms, what share of the property belongs to whom. For more information on a Deed of Trust, visit Sam Conveyancing.
There are advantages and disadvantages to either arrangement. Joint tenancy tends to suit married couples well as in the event of death, the property immediately goes to the spouse. However, for couples who may have children from previous relationships, a Tenants in Common arrangement might be preferable so children can benefit from a share of the property. Whichever one you choose should suit your individual circumstances.