For those who aren’t married, the housing market doesn’t have to pass you by you and your significant other, best friend, family member, or business partner can purchase a home together as joint owners. Simply decide how you want to buy, use, and eventually, sell the property to determine what form of ownership goes onto the deed as tenants in common, or as joint tenants with the right of survivorship.
As tenants in common, you both own shares of the property, you both have the right to use the property and you can make your own financial agreements. Either of you can sell your share of the property to a third party or pass your share to heirs.
Joint tenancy with right of survivorship (JTWROS) has specific requirements: each joint tenant must take title of their share at the exact same time, using the same legal instrument to create a JTWROS. Each tenant must have an equal interest in the property and can use and/or profit from the property equally, but shares cannot be sold or inherited, instead going to the remaining tenant(s).
The benefits of joint ownership are numerous as long as you each disclose your finances honestly and are willing to share the responsibilities of maintaining the property. You share the debt on the property, making it more affordable to own. Building equity leads to more financial security and having a clear deed that outlines your ownership rights helps to protect your interests and those of your partner.
