In Tennessee, there are three main types of ownership by which land can be co-owned by multiple parties. These forms of ownership, which are known as “tenancies”, are tenancy in common, joint tenancy with right of survivorship, and tenancy by the entirety.
These tenancies can be created when land is conveyed to two or more parties. In most cases, a deed will expressly state the parties’ type of co-ownership. For instance, a deed creating a tenancy in common might read as follows: “to Billy Joe and Betty Sue, as tenants in common”.
There are four factors can determine what type of tenancy is created by a conveyance. These four factors, often referred to as “unities”, are interest, title, time, and possession. The unity of “interest” requires that the conveyance’s grantees have one and the same interest. The unity of “title” means that the grantees received their interest in the same conveyance. The unity of “time” means that grantees interest was created at the same time. Finally, “possession” means that the grantees both have the same undivided possession of the property. The presence of these unities can determine the type of tenancy that is created by a conveyance. For example, if these four unities are present in a conveyance to a married couple, then the couple may hold the land in a “tenancy by the entirety”.
The manner in which property is co-owned is crucial because it affects the rights of the parties owning such property as well as how property is conveyed upon the death of a co-owner. Before purchasing a property, or even making an estate plan, it is imperative that you consider these different types of co-ownership.
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For more information regarding the co-ownership of property in Tennessee, please see our upcoming articles on tenancy in common, joint tenancy with right of survivorship, and tenancy by the entirety. Call the attorneys at Wooden Law Firm, P.C., today for assistance with your legal real estate needs. LLC. at (423) 756-9972.