Co-ownership is a situation where at least two people share ownership of real estate or a piece of land. If this property is located in Illinois, there are several laws that require the co-owners to have agreement about how the title for the property will be held by all owners.
There are three options: joint tenants with ownership rights, tenants in common, and tenancy by the entirety. These are very different designations and understanding the options is important from the beginning. Working with an Elgin lawyer experienced in real estate law can be a great help.
Tenancy by the Entirety
This type of ownership requires that the property title is held by a married couple. This method of holding title will give couples added protection against some types of creditors as it is marital property. It also gives the rights of survivorship to the other spouse if one dies. However, this can lead to potential difficulties when it comes to enforcing a will. An Elgin lawyer can explain the advantages and disadvantage of this title form.
Tenants in Common
This is the most common type of title, as it is the default when there are no other specifications. The people owning the property will have ownership interests that are independent. That means they can sell, transfer, or convey their share at any time without permission of the co-owners. This type of title can also have a claim made on it by a creditor for the share of the property that is owed by one owner.
With joint tenancy, each co-owner has an equal ownership interest. As such, the terms and conditions of this title form need to be written out in the deed for the property. A tenant cannot transfer or sell their ownership interest without breaching their agreement. The agreement may also be broken if a tenant buys another tenant’s share or files for a partition act. This type of co-ownership grants rights of survivorship, so if an owner passes away, that share will be transferred to any surviving owners.
Real Estate Law Assistance
Joint ownership of property requires many legal actions, which means it is best to have the help of a real estate attorney. Casement Group P.C. have years of experience and can offer assistance as you work through the possibilities. You can call the office at 847-278-8657 for a free consultation today.