Joint Tenancy vs Tenants in Common in Washington State
When multiple people own property together, understanding the legal structure of that ownership is essential. In Washington State, two common ways to hold co-ownership are joint tenancy vs tenancy in common. Each structure offers distinct legal rights and obligations, particularly concerning what happens if one owner dies or wants to sell their share. Choosing the correct ownership type can affect inheritance, financial planning, and property management, so it’s crucial to know the differences.
Joint Tenancy: Unity of Ownership and Right of Survivorship
Joint tenancy is a form of co-ownership where all owners hold equal shares and rights to the property. A defining feature of joint tenancy is the right of survivorship—if one owner dies, their share automatically passes to the surviving joint tenants, avoiding probate. In Washington, this can simplify the transfer of property between spouses or family members, especially for homes and real estate investments.
Key Characteristics of Joint Tenancy:
- Equal Ownership: Each joint tenant owns an equal share, regardless of how much each person contributed to the purchase.
- Right of Survivorship: When one owner dies, their share passes directly to the other joint tenant(s), bypassing probate.
- Unity of Possession: All owners have equal rights to use the entire property.
- Termination of Joint Tenancy: If one owner sells or transfers their interest, the joint tenancy ends, and the ownership converts to a tenancy in common between the remaining owners.
Tenants in Common: Flexible Ownership with Inheritance Rights
In a tenancy in common arrangement, each owner holds a separate share of the property, which can be unequal. Unlike joint tenancy, there is no right of survivorship, meaning that when an owner dies, their share becomes part of their estate and can be passed to heirs according to a will or the laws of intestacy.
Key Characteristics of Tenancy in Common:
- Unequal Ownership Allowed: Owners can hold different percentages of the property (e.g., one owner may hold 60%, and another 40%).
- No Right of Survivorship: A co-owner’s share passes to their heirs or beneficiaries upon death, not to the other co-owners.
- Transferable Interest: Each owner can sell or transfer their share independently without needing consent from other co-owners.
- Shared Use and Responsibility: All tenants in common have equal rights to use the entire property, regardless of ownership percentages.
How to Choose: Joint Tenancy vs Tenants in Common?
The decision between joint tenancy vs tenants in common depends on your goals for the property and how you want to handle ownership in the event of death or disputes.
- Joint Tenancy is best suited for couples or close family members who want to avoid probate and ensure the property passes directly to the surviving owner. However, joint tenancy requires a high level of trust, as the sale of any owner’s share will terminate the joint tenancy.
- Tenancy in Common works well for business partners, friends, or investors who want flexibility in ownership and the ability to transfer their shares freely. It also allows for inheritance planning, as each owner’s share can be left to heirs.
Legal Implications and Considerations
In Washington State, creating either a joint tenancy or tenancy in common requires precise language in the deed. If the deed is silent on the type of ownership, the default assumption is typically tenancy in common, meaning there is no right of survivorship. To establish a joint tenancy, the deed must specifically state the intent, such as “as joint tenants with right of survivorship.”
If you need to change ownership from one structure to another, such as converting a tenancy in common to joint tenancy, you will need to file a new deed. It’s important to consult with an attorney to ensure the documents are prepared correctly and reflect your intentions.
Both ownership types also carry shared responsibilities. Co-owners must coordinate on property taxes, maintenance, and other expenses, regardless of how ownership is structured. Disagreements between co-owners can lead to legal action, such as partition lawsuits, where the court may order the sale of the property to resolve disputes.
Choosing between joint tenancy and tenants in common has significant legal and financial consequences. While joint tenancy offers simplicity and the advantage of avoiding probate, tenants in common provide greater flexibility in ownership and inheritance planning. Each form of ownership serves different needs, so it’s essential to carefully evaluate your circumstances before deciding.
If you need help setting up a joint tenancy or tenancy in common, or if you are dealing with disputes over co-owned property, the Law Office of Erin Bradley McAleer is here to assist. Our experienced attorneys can guide you through the process to ensure your rights are protected and your intentions are reflected in the property deed. Call us today at (360) 334-6277 for expert legal advice.