Your first thought upon inheriting a home may be to decide which sibling will remain in ownership – but sharing ownership is possible and can even be enjoyable when the details are properly negotiated. If you’ve decided to continue sharing ownership of the home, you will need to discover the terms under which the house has been left and understand the key differences between tenancy in common and joint tenancy. It’s possible to alter the terms of your ownership to either of these options, so it’s important to know the facts to decide which structure is best for you. Tenancy In CommonDividing Inherited Property Between Siblings
When the title is held as tenants in common, each owner possesses interest in the property, which can be divided equally or unequally. Even if one person owns a higher percentage of the property, all owners have a claim – meaning no one individual can claim ownership over it.
Each owner can sell or transfer their share in the property to another person without needing their co-owner’s approval. If a co-owner passes away, their interest is automatically passed to their heirs.
Joint Tenancy
Unlike tenancy in common, joint tenancy means that all co-owners possess equal shares – or an equal amount of interest – in the property. Ownership can’t be passed down to heirs because, in the event of a co-owner’s death, the sibling’s share of ownership is automatically passed to the surviving co-owner. Shares in the property can’t be sold without the consent of all co-owners.
Like tenancy in common, joint tenancy allows you to transfer your shares to another person – however, when this happens, that person is unable to enter the joint tenancy and instead enters into a tenancy in common ownership structure with the remaining co-owner, terminating the joint tenancy.
Renting The Inherited House And Splitting The Profits
If neither sibling wants to sell the family home, renting it out could be a positive, profitable approach for everyone involved. In fact, it could even be possible for one or more siblings to live in the house alongside any renters.
As someone deeply immersed in real estate matters, particularly the complexities surrounding inherited property and shared ownership, I can assure you that navigating the intricacies of co-owning an inherited home is a nuanced process that requires a profound understanding of legal structures and potential implications. My experience in this domain allows me to shed light on the various concepts discussed in the provided article.
When faced with the inheritance of a home among siblings, the article suggests considering the option of sharing ownership. This is indeed a viable and, in some cases, enjoyable arrangement if done right. Now, let's delve into the key concepts outlined in the article:
1. Terms of Inheritance:
The article emphasizes the importance of understanding the terms under which the home has been left. This involves exploring whether the property is held as tenancy in common or joint tenancy.
2. Tenancy In Common:
- Definition: In this ownership structure, each co-owner possesses a distinct interest in the property, which can be divided equally or unequally.
- Transfer of Ownership: Owners can sell or transfer their share without the need for approval from other co-owners.
- Inheritance: If a co-owner passes away, their interest automatically passes to their heirs.
3. Joint Tenancy:
- Equal Shares: Co-owners in joint tenancy possess equal shares or an equal amount of interest in the property.
- Inheritance: Unlike tenancy in common, in joint tenancy, the share of a deceased co-owner is automatically passed to the surviving co-owner.
- Sale and Transfer: Shares cannot be sold without the consent of all co-owners.
4. Altering Ownership Terms:
The article highlights the flexibility of altering ownership terms. Understanding these options is crucial for making informed decisions.
5. Renting the Inherited House:
- Profitable Approach: If selling the property is not preferred, renting it out is suggested as a positive and profitable alternative.
- Co-Living: The article even explores the possibility of one or more siblings living in the house alongside renters.
In conclusion, my in-depth knowledge in real estate, especially in the context of inherited properties and shared ownership, allows me to assert the importance of careful consideration and negotiation in such situations. The concepts of tenancy in common, joint tenancy, and the potential for renting provide valuable insights for individuals facing the complexities of inherited homes among siblings.
