Types of Philadelphia Real Estate Property Ownership
There are varying types of Philadelphia real estate property ownership that can often get confusing if you are not versed in real estate terms. Here, I will do my best to describe the differing forms in the most simple terms.
PHILADELPHIA REAL ESTATE PROPERTY OWNERSHIP: SOLE OWNERSHIP
This is the most common form of ownership. In this type of Philadelphia real estate ownership, an individual is the only owner of a property, owns all the rights and interests, and can do with the asset as they see fit. The only time these lines become blurry is when a married couple purchase a property and put it in only one person’s name.
Ex: Fred buys a house. He has the right to all of the interests in the property and does not need to ask permission when trying to sell the property. Certain limits apply if property is purchased during marriage.
PHILADELPHIA REAL ESTATE PROPERTY OWNERSHIP: TENANTS IN COMMON
If you are a Philadelphia real estate owner and have ownership under tenancy in common, your rights are divided among the your other co-owners. This division does not need to be equally distributed, and each tenant has the right to do with his/her interest as they choose. When one of the co-owners passes away, the interests they owned passes to their heirs.
Ex: Fred, Ted, and Ned own a house together. Fred owns 50% interest, Ted owns 30%, and Ned owns 20%. When Fred passes away, Fred’s heirs receive the interest in the home that he held.
PHILADELPHIA REAL ESTATE PROPERTY OWNERSHIP: JOINT TENANCY
Joint tenancy in Philadelphia real estate involves two or more individuals owning the same property. These individuals have equal rights to the property, and the property is held under one title. In the case of joint tenancy, all owners or parties would need to reach a consensus when trying to sell or remodel the property. The major distinguishing characteristic of this type of Philadelphia real estate property ownership is that joint tenancy comes with a right of survivorship. This means that when one of the co-owners dies, the property is evenly distributed to the remaining owners, not to the deceased’s heirs.
Ex: Fred, Ted, and Ned own a property in Joint Tenancy. When Fred passes away, Ted and Ned equally distribute his interest to themselves, instead of passing them on to Fred’s heirs.
Whichever type of Philadelphia real estate ownership you take in a property, please make sure you are clear about legal ramifications that are associated with your ownership! If you have any questions in your decisions, get in touch with a legal consultant or a philadelphia property management company.
