Concurrent ownership, in real estate and property law, refers to a property that can be owned by more than one person at a given time. It is sometimes also referred to as concurrent estate. The people involved in such a transaction can be joint tenants, co-tenants, or co-owners as well.
Concurrent ownership is very common among two investors. In most cases, these individuals may not have the necessary amount of money individually to put into a property that they would like to gain profit from, so they seek a partner. An example of this can be a person looking to invest in an apartment building complex in which the apartments will be rented out to other tenants. The person would contact a partner, and they would each put half of the cost towards the property down, and become co-owners of that property.
This entitles them to split the profits evenly from the rentals, as well as to pay any associated fees and maintenance costs respectively, split in half as well. Prior to signing a concurrent ownership, the two parties must abide by a set of rights that are established as a guideline for what can and cannot be done with the property. For example, a rule can be set as to when and if the possibility to sever the other owner from their share can take place, at what cost, and by what process.
It can also set a rule whether or not one owner can sell their share to someone else, and whether the other partner could be eligible to purchase it. Setting these regulations prior to agreeing to a concurrent ownership can help a void legal headaches down the road. This type of tenancy, where both owners are entitled to an exact even share of possession and control over the property in concurrent ownership, is known as “tenancy in common”.
In another form of concurrent ownership known as joint tenancy, both parties are entitled to a right of survivorship. This means that, in the event that one owner of the property dies, the surviving owner is entitled to the full share of the other. At this point, the owner will have complete ownership and control of the property. In both joint tenancy, and tenancy in common, either shareholder can end the co-tenancy by suing the other one for partition.
Partition in kind, or by sale, will be granted by the court, effective immediately, with no need for trial or proof of cause. Partition in kind means that the land will be physically divided to show each side their visible ownership. With partition by sale, this entails both parties to a division of the money earned through a judicial sale of the property. The third form of concurrent ownership, which is tenancy by entirety can only be entered by such parties as a husband and wife, and is very rarely used today. In fact, some states have even banned it.