What are Joint Tenants in Common (JTIC)?
Joint tenants in common (JTIC) is a formal relationship where two or more people own a piece of property or another object. Still, no one can inherit the property after the other person dies. When one owner dies, the rights of the dead owner don’t always go to the still-alive owner. Individuals can own a piece of land through JTIC and share the costs that come with it.
How to Understand Joint Tenants in Common (JTIC)
Joint renters in common are two or more people who own something together. Natural land, bank accounts, brokerage accounts, business portfolios, and other kinds of property can be considered assets. People who owned property before you could set up joint tenants in a standard plan by leaving their property to their heirs in a will. For example, a parent could leave their property to their four children. The parent can give each child an equal share of the property or a certain amount.
Members usually own a certain amount of an account based on how much each person contributes. In this case, each person in the relationship owns the same amount of the asset as their input. For example, someone who gives 60% owns 60% of the asset. People may also get together in a way that gives each person a fair share of the land. People who are joint renters in common can share the property and can’t keep the other person from accessing it. A property owner can’t stop a tenant-in-common from leaving or selling their share of the land.
In this type of legal connection, when one owner dies, the remaining owner(s) do not immediately get their share of the asset. Each account holder can write a will that says how their assets should be divided after they die. This person’s will is the only way for the remaining tenants to get the dead owner’s share of the property.
This may seem like an odd relationship, but it happens all the time when more than one person wants to own land but doesn’t want to pay for it all by themselves. If two people want to own a house or a brokerage account, they may find it cheaper to become joint renters and split the costs, such as the down payment, property taxes, repairs, trading fees, and other costs that come with the asset.
Unique Things to Think About
More than one person can agree to be joint tenants in common when they buy property together. Usually, each party’s ownership and share would be based on the portion of the assets they agreed to give up. One person would have an 85% claim to a property if they agreed to pay 85% of the money needed to buy it.
There is no need to treat the property as a whole unit; you can still sell your share.
Joint renters treat the property as a whole unit instead of splitting it up. This means that each renter can use the whole property, not just a part of it, depending on how big their claim is.
Each renter may be able to use the resources connected to the shared property or account as they see fit, depending on the rules in the area and the type of account. This can include taking money out or selling their stake in the home.
In some states, deals involving joint tenants in shared accounts or land must have signatures from everyone with a right to ownership share. All sides would have to agree to sell the whole property. Each roommate could decide to sell their share. Even if a renter sold their share of the property, it would still be seen as a single unit, not as two separate ones.
Conclusion
- Joint renters in common are two or more people who own an object together but don’t have any rights to it after they die.
- You can tell your landlord in a will how to handle their property after you die.
- Different JTIC accounts can have different property stakes but still have the same rights and access to them.
