Creating Your Legal Agreement: Understanding Joint Tenancy and Tenants-in-Common

When embarking on a co-ownership journey, understanding the legal framework is crucial. Generally, there are two primary types of legal relationships between co-owners: joint tenancy and tenants-in-common.

Joint Tenancy

Joint tenancy comes with the right of survivorship, meaning that if one owner passes away, their ownership interest transfers equally to the surviving owners. This arrangement can be set up for equal or unequal portions of the property, allowing individuals to share the right of survivorship based on their percentage interests.

Tenants-in-Common

In a tenants-in-common arrangement, each owner’s share of the property becomes part of their estate. Upon their death, this share is distributed according to their will. This setup allows for proportional distribution of ownership and can be tailored to each co-owner's individual estate planning needs.

Integrating Legal Agreements with Estate Planning

Your purchasing group’s Legal Agreement should align closely with each member’s Last Will and Testament. Both documents need thorough review by an experienced lawyer to ensure clear, well-established terms for handling the death of any group member. This proactive step secures the group’s stability and honors each member’s wishes.

What to Include in Your Legal Agreement

Next, explore the essential elements to include in your legal agreement, starting with your Rights and Responsibilities. Understanding these fundamentals will help create a strong foundation for your co-ownership venture.

How to Create Your Legal Agreement

Click on the sections below to learn more and begin crafting your comprehensive co-ownership agreement.

How Do You Create Your Legal Agreement?

Click on the sections below to learn more.

1. Creating Your Legal Agreement: An Introduction
2. Creating Your Legal Agreement: Understanding Joint Tenancy and Tenants-in-Common
3. Creating Your Legal Agreement: Rights and Responsibilities
4. Creating Your Legal Agreement: Defining Financial Obligations
5. Creating Your Legal Agreement: Planning for Future Scenarios
6. Creating Your Legal Agreement: Essential Legal Steps and FAQs