How Should Two Or More People Own Property? Does It Matter?

TECHLAW: WHEN TWO OR MORE PEOPLE PURCHASE PROPERTY, THEY RARELY CONSIDER HOW THEY SHOULD TAKE TITLE TO THE PROPERTY, AND THIS COULD BE A BIG MISTAKE.

When two or more people (whether spouses, friends, or business partners) purchase property, they put significant thought into, among other things, the property's value, appearance and condition, and how they are going to improve the property. They rarely, however, consider how they should take title to the property.

Concurrent ownership exists where two or more people own property together, with neither person having exclusive use and possession of any specific part of the property. In North Carolina, there are, for all practical purposes, three types of concurrent ownership: (1) Tenancy in Common, (2) Joint Tenancy with the Right of Survivorship, and (3) Tenancy by the Entirety. Each type of concurrent ownership has its own distinct advantages and disadvantages, especially in matters involving the sale of