If you’re buying a home with a partner, friend, or family member who is not your spouse, you will be asked how you wish to take ownership of the property. This information is referenced on the deed that is recorded into public record. The following is helpful information on ownership relationship options for unmarried homebuyers in MA.
In joint tenancy, all owners maintain interest in the entire property rather than specific pieces of it. More importantly, if one owner passes away, his/her ownership rights go to the remaining co-owners rather than to his/her estate. It’s almost equivalent to you gifting your ownership rights to your co-owners in your will.
If you are purchasing a property with friends, you probably would not select joint tenancy. This option is more often selected when very close family members or engaged couples purchase properties together.
Tenants in Common
Tenants in common allows each co-owner to retain his/her rights in the property. If one co-owner passes away, ownership rights and interests are assigned to his/her heirs. Therefore, with tenancy in common, you have more control over what happens to your asset/investment in the event of your death. You certainly could still assign your asset to your co-owner or to any number of other heirs per your will.
More on Ownership Relationship Options for Unmarried Homebuyers in MA
The deed is typically prepared shortly before the closing, so you will need to make this decision ahead of time. If you are unsure of how you wish to take ownership of a property, tenants in common is the safe option. For additional information on ownership relationship options for unmarried homebuyers in MA and other assistance with your home closing needs, please feel free to contact us.