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Concurrent Ownership Types

Tenancy by the Entirety Defined

Tenancy by the Entirety Defined

In tenancy by the entirety, like other types of concurrent ownership, both owners own a property together. However, in this tenancy, each tenant owns the entire estate, which does not allow one from acting individually over the other. 
This includes prevention of having one of the tenants attempt to sell or give away their interest in the property without prior consent of the other tenant. Tenancy by the entirety does require both parties to be bound by marriage in order to own the property. This has been amended in certain states which now allow domestic partnership or legal unions, so that these individuals, can also take part in a tenancy by entirety.
The property laws involved in this type of tenancy are similar in basis, but the details it entitles vary with each one. The property in a tenancy by the entirety is protected from judgment creditors trying to enforce liens against that property unless both tenants were to file for bankruptcy. The spouses own the property as a single being. In this type of tenancy, the right of survivorship is also offered in case one owner dies. 
This entitles the surviving tenant, ownership of  the property in entirety. In the case that a husband and wife are divorced while in a tenancy by the entirety, then the title of the property and assets would change to a tenancy in common. There are currently 17 states that allow complete tenancy by the entirety, whereas 7 that allow it strictly for real estate purposes. 
Although this area of property law has existed for some years, the full use of it was not taken part in until the pros and cons of this tenancy were completely understood. For example, one disadvantage of property that is held in the title of tenancy by the entirety is the absence of ‘partition’. The tenancy cannot be severed due to partition being filed for by either tenant. 
In addition, in this type of tenancy, the title cannot be modified to a tenancy in common or joint tenancy due to a conveyance of the property. In order for a couple to completely obliterate a tenancy by the entirety, they must either agree accordingly in a document to do so, file for divorce, or acquire an annulment. 

Know the Different Types of Ownership

Know the Different Types of Ownership

Tenancy in common is another type of concurrent ownership (estate) through which two owners can own a property at the same time. Through this tenancy, there is no ‘right of survivorship’ involved. This type of tenancy is mostly common among two business partners who are not married, or related (even though sometimes that can be the case). The two owners in a tenancy in common, are usually referred to as ‘tenants in common.’
In a tenancy in common, the property remains undivided. This means that both people involved will have full access to the entire property while each owns a part of it. The two most common areas where a person can see a tenancy in common is in real estate and within joint bank accounts. The main difference between a tenancy in common over a joint tenancy is that when one of the owners is deceased, they can determine (by a predetermined will or document) how to distribute the property. 
Unlike a joint tenancy, where the property is automatically given to the surviving owner, in this tenancy, the property can be dispersed to another owner(s) or sold and the assets distributed to who was named in the will or document. Also, in a tenancy in common, both parties are entitled to the use of that property equally even if the interest put into that property wasn’t the same.
When two or more people want to share ownership of a piece of property for any reason, but don’t hold a relationship where they would want the property to be handed over to the other holder/holders in case of his or her death, they commit to a tenancy in common. This is mostly seen among friends, business partners, or in the case of a boyfriend and girlfriend prior to marriage. This entitles each person to have their individual part, and also control what they do with it at the time of their death. 
Speaking in the case of a real estate property, two people can purchase a home and rent it out as a form of added income. They own the property as tenants in common and can collect the rent, and split the payments in half evenly. Should they choose to mutually sell the property, then the property can be sold and the profits made will be evenly split in half and given to each owner (pending the amount they put into the property). Tenancy in common is a way to share a property with someone but not devote the entire property to that person in case of death, and for people that don’t have serious or intimate relationships, or relation to the other person. It is an effective way to invest in property with someone for profit, when one alone doesn’t have the interest alone to do so.

A Quick Guide to Community Property

A Quick Guide to Community Property

In order to be eligible for community property, which is a form of property ownership, the two persons involved must live in a community property state. There are only ten states in the United States that allow community property. The term refers to a property that is gained (in ownership) by either the husband or a wife during a marriage, therefore, becoming community property belonging equally to both spouses. 
This does not constitute all the property gained by them as community property, however. The property that is left individually owned by either spouse is known as separate property. In turn, any separate party that becomes interacted with by both parties may eventually become a community property.
The states that allow community property whether by default or contract are: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Each state has a varying set of community property laws, however, they all base off the principle that most property obtained during marriage can become community property. 
In the case of an annulment, a divorce, or death of a spouse, the property will be divided equally. In the case of division, the property will be divided in items by half, or can also be divided by the value of items, usually a fifty/fifty split. California has a set law that all community property must be divided equally at a fifty/fifty split, and cannot be challenged. The only things kept out of this would be those that are titled as separate property. In recent years, some of the states that allow same sex unions offer community property laws to the parties in these unions.
Community property generally does not include any gifts or inherited properties. These are seen as solely separate property belonging individually to each respective spouse, and can be left behind or distributed accordingly to that person’s wishes upon death. It is important, when preparing a person’s estate through a lawyer, to determine very carefully what is considered to be community property as opposed to separate property. This can help clarify the property to be distributed in a will at the time of death, and make the process much smoother for relatives. 
One of the reasons that community property isn’t widely accepted among other states, is due to the fact that due to high rates of divorce, couples like to maintain some property and assets separate from the spouse in the unfortunate event a divorce is inevitable. They also like to keep some sort of independent control over certain property and assets. These things considered, along with other cons, can represent the reason for the unpopularity of community property law’s existence in many states.