With joint tenancy, two individuals can own property together, sharing both ownership and the obligations associated with the property. For instance, if they have a mortgage, both are responsible for the payments. While they may create informal agreements—such as one person paying the mortgage while the other covers utilities and taxes—they are both legally responsible for these payments.
This shared arrangement can make real estate transactions more complex. Since joint tenancy is typically split equally, neither individual can independently decide to sell the property. Both parties must agree to the sale, and their mutual consent is required. Even selling one ownership share can involve significant legal and logistical hurdles.
The owners’ relationship
The complexity often depends on the relationship between the co-owners. For example, a married couple with joint tenancy may sell their home together when relocating. In such a case, both parties are likely to agree and work collaboratively, minimizing complications.
However, difficulties may arise in other situations. For instance, two friends might purchase a home together during college as an investment. If one wants to sell the property after graduation but the other wishes to retain ownership, they must reach an agreement. The individual who wants to sell cannot proceed without their co-owner’s consent.
Legal solutions are available for these situations. For example, some owners convert joint tenancy into tenancy in common, allowing one party to sell their ownership share and bring on a new co-owner. However, this process differs significantly from traditional property sales, where one individual owner can make decisions independently. It’s crucial to understand the legal obligations involved and the appropriate steps to take.
