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What are tenants in common in Georgia?
In this article, you’ll learn about:
Let’s dig in.
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Let’s look at what tenancy in common is an an example of it.
Tenants in common in Georiga refers to a property ownership structure.
In this structure, two or more people jointly own a property.
Each person owns a distinct portion.
Georgia Code Title 44, Section 6, governs this type of ownership.
With tenancy in common, all tenants have equal rights to use the property.
These rights exist regardless of the size of their ownership share.
Thus, every owner gets to use the entire property, not just the portion they own.
When a tenant in common dies, the situation differs from a joint tenancy.
In a joint tenancy, the deceased’s share passes to the remaining owners.
But with a tenancy in common, there’s no “right of survivorship.”
The share of a deceased tenant doesn’t go to the other tenants.
It goes to the deceased’s heirs or according to their will.
Tenants in common have the freedom to sell or mortgage their property share independently.
If disagreements occur between tenants, they can seek a partition action.
This partition action could either:
The proceeds would then be shared among the co-tenants.
In a tennancy in common, all tenants equally share responsibilities like:
These costs usually align with their ownership shares.
A well-written tenants in common agreement can outline these responsibilities.
This helps prevent potential disputes.
Let’s consider an example scenario to understand tenancy in common better.
Let’s assume there are three friends, Alice, Bob, and Charlie.
And they decide to invest in a piece of real estate together – a vacation house in Savannah, Georgia.
They decide to own the property as tenants in common, agreeing to divide ownership equally.
Each person owns a one-third interest in the property.
In their tenancy in common arrangement:
This example shows how tenancy in common operates in real life.
Still, it’s wise to create a detailed tenants in common agreement.
This tenants in common agreement should clarify each owner’s rights and duties.
It should also help manage potential disagreements.
Plus, it should provide clear directions for situations.
These may include a tenant’s death or the sale of a property share.
Types of tenancy in real estate refers to various ownership arrangements, rather than specific categories.
These can depend on the number of owners, their relationships, and ownership proportions.
Regardless of the arrangement, all tenants in common share an undivided property interest.
They each have the right to use and possess the entire property, not just their ownership share.
Joint tenancy often includes the right of survivorship, but typically, tenants in common does not.
The right of survivorship means when an owner dies, their property share transfers to the surviving owners.
It doesn’t pass to the deceased owner’s heirs or according to their will.
In a tenants in common arrangement, each owner holds a distinct, undivided property interest.
They may own varying proportions.
If a tenants in common owner dies, their share doesn’t go to the surviving owners.
Instead, it passes to their heirs or according to their will.
This provides more estate planning flexibility.
But it can complicate matters if the deceased owner’s heirs don’t wish to maintain the same arrangement with the surviving owners.
Joint tenancy and tenancy in common are two types of property ownership, each with distinct features.
Joint tenants both own the entire property.
They have what’s known as a right of survivorship.
This means if one joint tenant dies, their share automatically passes to the surviving tenant, regardless of any will or legal claim.
Tenants in common, on the other hand, each own a specific share of the property.
This can be equal, but it doesn’t have to be.
Unlike joint tenancy, there’s no right of survivorship.
If a tenant in common dies, their share can be willed to someone else, not necessarily the other tenant.
In joint tenancy, everyone needs to agree if you want to sell the property.
In tenancy in common, each tenant can sell their share independently.
So, if you want the property to automatically pass to the other owner upon death, joint tenancy might be for you.
If you want more flexibility to will your share or sell it separately, consider tenancy in common.
Let’s look at your:
In a tenants in common agreement agreement in Georgia, each tenant holds a distinct and transferable interest.
They can sell, gift, or mortgage their share without needing consent from the other tenants.
If a tenant dies, their interest doesn’t automatically go to the surviving tenants, unlike in a joint tenancy.
Instead, their share becomes part of their estate and passes on to their heirs or as directed by their will.
Read More: Transfer On Death Deed Georgia
Each tenant in a tenants in common agreement has financial responsibilities.
These include:
The share usually corresponds to the size of their ownership interest.
If a tenant fails to meet their financial obligations, it can result in serious consequences.
For instance, unpaid property taxes may lead to a tax lien, putting the entire property at risk.
In such cases, the other tenants may have to cover the cost to protect their investment.
All tenants in a tenants in common have the right to use and enjoy the entire property.
Not just a specific section or part corresponding to their interest.
Each tenant’s right to use the property is subject to the same rights of the other tenants.
Conflicts may arise over property use.
For example, disputes could occur about:
It’s important to address these issues:
Legal action can be a last resort to resolve persistent conflicts.
Let’s talk about:
A tenants in common agreement defines the rights, responsibilities, and interests of each co-tenant.
In Georgia, key elements of a tenants in common agreement typically include:
Forming a tenants in common in Georgia involves several steps:
When buying a property as tenants in common, it’s important to be aware of each step and potential issues:
Pitfalls to avoid during this process include:
You’re likely to have disputes about property held as tenants in common.
Let’s look at:
Read More: How To Terminate A Tenants In Common Agreement In Georgia
Co-tenants often face disputes about:
Good communication and a well-drafted tenants in common agreement can prevent many of these issues.
The agreement should outline each tenant’s:
If conflicts arise and can’t be resolved through dialogue, consider mediation.
A neutral third party can help find a mutually acceptable solution.
For ongoing issues, you may need to go to court.
Georgia courts can issue rulings to settle disputes between co-tenants.
Sometimes, a co-tenant may want to dissolve the tenants in common relationship.
This can be done through a process called partition.
It involves dividing the property so that each tenant owns a distinct portion.
To start a partition action in Georgia, you file a petition with the court.
You’ll need to show the court that you own part of the property.
The court then decides how to divide the property.
There are two types of partition:
A partition in kind physically divides the property.
A partition by sale sells the property and splits the proceeds.
Selling a tenants in common property can be complex.
Each tenant can sell their share separately.
However, the process is easier if all co-tenants agree to sell the entire property.
To sell, you’ll need to establish the price of the property or the individual shares.
An appraiser can help with this.
Next, list the property or shares for sale.
When you find a buyer, you’ll sign a deed to transfer ownership.
The proceeds are then divided according to each tenant’s ownership share.
A clear tenants in common agreement, open communication, and legal guidance can help navigate:
Read More: Can Someone Sell A House If Your Name Is On The Deed?
When you want to buy out a tenant in common, you follow several steps.
Here are other questions clients ask us about tenancy in common in Georgia.
When one of the tenants in common dies, their interest in the property does not automatically pass to the surviving tenants.
Instead, their share in the property is part of their estate.
This means it’s subject to the terms of their will.
Or, if there is no will, it will be distributed according Georiga’s laws on intestate succession.
Tenants in common each own a distinct share of the property that they can leave to anyone they choose.
Therefore, the deceased tenant’s share may be inherited by a person or entity of their choosing.
This may or may not include the remaining tenants.
The new owner then becomes a tenant in common with the surviving original tenants.
And they assume the same rights and responsibilities as the deceased tenant.
This includes sharing costs and maintaining the property.
Let’s say the remaining tenants in common want to buy out the inherited share
They usually need to negotiate terms with the new owner.
Alternatively, they can agree to sell the entire property and split the proceeds according to their respective shares.
In a Tenancy in Common (TIC) agreement, there is no right of survivorship.
This means that if one tenant passes away, their share of the property does not automatically go to the surviving tenants.
Instead, their share is transferred to their heirs or as indicated in their will.
It’s different from joint tenancy where the right of survivorship applies, and a deceased tenant’s share is divided among the surviving tenants.
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