1. Real Estate and Other Housing
2. Homeownership
3. Joint Ownership of Real Residential Or Commercial Property
Joint Ownership of Real Residential Or Commercial Property
Topics on this page
What is Real Residential or commercial property?
Key Terms
Tenancy in Common
Joint Tenancy
Tenancy by the Entirety
Determining the Ownership That's Best for You
Real residential or commercial property, which is also frequently described as realty, is the land and the important things that are permanently connected to it, like a home. Real residential or commercial property can have a sole owner. Real residential or commercial property can also have multiple owners. The owner might be an individual, however the owners can also be a company, a trust, or other entity. A residential or commercial property can be owned by a mix of individuals and entities. There is no real limitation on the variety of people or entities that can own a specific piece of real residential or commercial property.
This article concentrates on ownership of real residential or commercial property in Maryland by numerous owners, typically referred to as "joint ownership" or "concurrent ownership." It is very essential to know where the real residential or commercial property is located due to the fact that various states have various laws about how numerous owners can own real residential or commercial property.
In Maryland, joint owners have 3 options for owning or "holding title" to real residential or commercial property. The laws related to joint ownership of genuine residential or commercial property in Maryland is mostly governed by case law, which is the law found in judges' opinions. It is extremely essential to understand the differences between the 3 alternatives since each choice has different rights and responsibilities for the joint owners.
Key Terms
A "deed" is a legal document that shows the ownership of genuine residential or commercial property and is recorded with the Land Records Department in Maryland.
" Holding title" to real residential or commercial property is a legal method of stating you own that real residential or commercial property.
" Presumption" indicates that a court is allowed to assume something to be real unless there is proof that disproves or surpasses the anticipation. The concern is the celebration refuting the presumption to supply this evidence to disprove or outweigh the presumption.
" Right of survivorship" indicates that a making it through co-owner can take ownership of the departed co-owner's share of the residential or commercial property.
" Undivided interest" suggests that each owner has an equivalent right to utilize and delight in the whole residential or commercial property. However, no individual has a special right to any specific part of the residential or commercial property.
Tenancy in Common is a form of joint ownership of genuine residential or commercial property with two or more owners called "renters in common." Each co-owner or tenant in common owns a particular share or percentage of the residential or commercial property. Tenants in common can have equivalent shares, however they can also hold title in unequal shares. For example, you might have residential or commercial property held by two owners where one owner has a 75% share and the other owner has a 25% share. However, renters in common still have an undivided interest in the residential or commercial property, meaning that they deserve to utilize and delight in the entire residential or commercial property.
There is no right of survivorship. If an owner passes away, that owner's interests hand down to his/her heirs. An occupant in common can transfer their residential or commercial property interest via a will. If the renter in typical passes away without a will (intestate) then Maryland's intestacy laws would apply to that tenant in typical's share of the residential or commercial property.
Joint occupancy is a type of joint ownership of genuine residential or commercial property with 2 or more owners called "joint occupants." The joint renters have a concentrated interest in the real residential or commercial property and the right of survivorship. While it is typical for joint occupants to be partners or parent and kid, there is no requirement that the parties be wed or related. Each owner has an equivalent, undivided interest in the genuine residential or commercial property.
Joint tenancy consists of rights of survivorship. When one joint renter passes away, that joint renter's concentrated interest in the real residential or commercial property instantly passes to the making it through joint tenant or occupants. Generally speaking, residential or commercial property with a right of survivorship is left out from a deceased individual's estate, so it is not subject to a will. However, there can be exceptions to this basic rule. So if you remain in this situation, it's a great idea to speak to an attorney.
To produce a joint tenancy under Maryland law, the language in the deed need to be really clear that the celebrations plan to create a joint tenancy since Maryland has a presumption against joint occupancy. This implies that documents, such as deeds, need to specifically supply that the real residential or commercial property is to be owned as a joint occupancy for it to be legally recognized as such. Therefore, if purchasing genuine residential or commercial property with the intent of joint tenant ownership, explicit language suggesting that intent is needed. In the absence of this language, ownership will be assumed to be a tenancy in common.
Creation and maintenance of a joint occupancy likewise requires "4 unities of interest" to be present. These "4 unities" are 4 legal requirements associated with the residential or commercial property that include combined rights in regards to time, title, interest, and belongings for all joint tenants.
1. Unity of Time - all owners' interests must have vested at the same time (" vested ownership" implies that the genuine ownership of the residential or commercial property for all owners was completed at the very same time).
2. Unity of Title - all owners' interests should be obtained from the exact same deed.
3. Unity of Interest - all owners have equivalent interests in the residential or commercial property.
4. Unity of Possession - all owners have equivalent and concurrent rights to possess the residential or commercial property
Tenancy by the Entirety
Tenancy by the totality is the third option for joint ownership of real residential or commercial property in Maryland. Unlike joint tenancy and tenancy in typical, tenancy by the whole is just available to a married couple.
Each spouse owns a concentrated interest in the real residential or commercial property, and there is a right of survivorship. Maryland has a presumption that residential or commercial property held by a married couple is held as occupants by the totalities. The presumption applies to residential or commercial property obtained by the couple. Tenancy by the whole needs the existence of the 4 unities of interest described above.
Divorce of the owners will convert a tenancy by the totality to a tenancy in typical.
Determining the Ownership that's Best for You
Determining the ownership that's finest for you will actually depend on the particular situation of you and your co-owners. Sometimes, the choice runs out your control. For example, you might have acquired a share of a residential or commercial property held by multiple owners in a tenancy in typical. However, you may wish to think about the concerns listed below when making your options.
- Are you and the other owner wed? Remember, tenancy by the entirety is only readily available to couples.
- Do you desire the other co-owner to immediately inherit your share of the residential or commercial property when you pass away? Remember, a joint tenancy has a right of survivorship.
- Are you mindful of all the celebrations' debts? A lender might be able to declare part of the other owner's share of the residential or commercial property.
- Are you intending on offering or financing your home? You may need to get all of the parties to accept the sale or the financing.
