What is Joint Tenancy?
Joint tenancy is an arrangement in which two or more individuals occupy a property. Participating tenants each share equally in the rights and responsibilities related to the property.
How Does Joint Tenancy Work?
If multiple individuals rent or purchase a property for work or living, each tenant carries joint and several liability in connection with the property. This means that each tenant potentially carries full responsibility for the property in the absence of his or her cohabitants.
For example, suppose two friends, Bob and Jack, rent an apartment together to reduce living expenses. As joint tenants, Bob and Jack are each responsible for paying rent and applicable utilities for the apartment. If Jack leaves without notice and becomes unreachable, any lapse in payments falls solely on Bob.
Why Does Joint Tenancy Matter?
Under joint tenancy, all property rights and responsibilities transfer directly to the remaining tenants in the event that one of the tenants dies or becomes unavailable. If the joint tenants own the property, this transfer occurs without probate.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.