A Comprehensive Guide To Tenancy In Common Georgia

Talk with a trusted Georgia estate law.


What Is Tenancy in Common in Real Estate?


There are numerous benefits to occupancy in typical in Georgia, however there are a couple of downsides to bear in mind also. Faulkner Law Offices can explain. Call now!


Author: Stan Faulkner, Founder, Perigon Legal Services, LLC


Mr. Faulkner is an experienced counselor and litigator with 15 years of experience, having actually held bar licenses in 4 states (Mo, Il, Ct and Ga). Stan Faulkner uses this experience and focuses his abilities in the pursuit of assisting individuals in probate (trust and estate) matters, guardianships and conservatorships, estate planning, organization disagreements and contract conflicts. Published on January 23, 2023.


While purchasing a residential or commercial property with somebody else, there might be several methods in which it can be titled. Tenancy in typical might be a good option if 2 or more individuals who relate or unassociated are purchasing residential or commercial property for investment or other functions.


Tenancy in typical is a type of co-ownership where everyone owns a fractional interest in the residential or commercial property. This type of ownership is frequently discovered in condominiums however can likewise exist in single-family homes and multi-unit apartment buildings.


Since exact laws differ, speaking to a competent property lawyer can help you comprehend Georgia residential or commercial property laws. They can assist you figure out whether tenancy in typical is an excellent entitling alternative for you.


See also:


Forsyth County Probate Court
Cobb County Probate Court
Medical Power of Attorney Georgia


How Does a Tenancy in Common Work?


In order to develop a tenancy in common, more than one individual needs to be involved, and they need to have an undivided interest in the entire residential or commercial property. They can then partition their interest into defined portions or fractions, depending on what makes sense for them.


The co-owners might have unequal shares in the residential or commercial property. However, unless specific stipulations of their arrangement state otherwise, the person with a more considerable share is not permitted to have preferential rights regarding belongings of the residential or commercial property.


When producing this kind of residential or commercial property ownership, it is frequently smart to consult a reliable legal authority for advice.


What Are the Legal Rights of Co-Owners in an Occupancy in Common?


Although understanding the United States residential or commercial property law basics is practical, the laws referring to residential or commercial property ownership are somewhat different in every state. Therefore, understanding the marketplace's specific laws when purchasing and selling residential or commercial properties in the state can make your deals more uncomplicated and successful.


Per GA. Code 44-6-120, Tenancy in Common, the owners in an occupancy in common arrangement are considered to be co-owners of a residential or commercial property. Although the shares may not be equivalent, all of the co-owners are entitled to full usage of the residential or commercial property.


Unlike a joint occupancy, co-owners in a tenancy in typical are not required to presume residential or commercial property belongings at the same time. They share residential or commercial property ownership and can offer those shares to other individuals. There is no right of survivorship, and the ownership rights of a specific share would pass to the beneficiaries of the co-owner upon their death.


Is Tenancy in Common a Great Thing?


Georgia recognizes tenancy in common as a kind of co-ownership that enables multiple owners to set graduating portions of ownership. For instance, if one owner wishes to offer their share of the residential or commercial property, it will be offered as a portion (or portion) of the entire and not just as a single system like you would find with other types of ownership like joint tenancy or tenancy by the entirety.


Tenancy in typical is a popular form of for


- Condominiums


- Townhouses


- Other kinds of residences


In this type of ownership, each owner has a share of the residential or commercial property and a concentrated interest in the whole.


Tenancy in typical is a type of co-ownership with several benefits and downsides.


The benefits include that it enables people to choose what they desire to finish with their share and provides a great method to safeguard one's possessions from future suits or financial institutions. Unless concurred otherwise, there is no need for the agreement to be signed by all the celebrations when a part of the interest is being sold. Whereas, when it comes to joint ownership, the sale of the residential or commercial property can not be fragmented.


Exist Any Disadvantages of Tenancy in Common?


The primary drawback of occupancy in common is that any tenant might move their share to any other individual without the approval of the other tenants. That suggests that one of the renters can decide to sell a share to someone the other occupants do not like, and they have no legal recourse to stop the sale.


There can also be potential disputes with other co-owners regarding making use of the residential or commercial property and disputes over just how much everyone need to contribute towards expenses such as taxes and upkeep.


Moreover, in an occupancy in common, the right of survivorship does not use when the owner passes away. In a joint occupant scenario with the right of survivorship, the residential or commercial property goes to the enduring spouse/co-owner. That is not real in the case of occupancy in common. Since the residential or commercial property owners can bestow their share to whoever they want, the subsequent heir may choose to offer their share.


Tenancy in Common Agreement


- Mortgage
- Taxes
Georgia Executor Fees
- Utilities
- Maintenance expense


A written agreement can consist of a provision ensuring that the other owners can either get the chance to purchase initially, a right of very first rejection, or interview and select potential purchasers together.


Can Tenancy in Common Be Dissolved?


In a tenancy in common, all the co-owners have an equivalent interest and opportunities with regard to the belongings of the residential or commercial property, which implies that they can liquify the tenancy in typical anytime by either selling their share or moving it to another individual.


A proficient lawyer with experience in the legal location of Georgia estate law can provide assistance and information.


Does Georgia Have Tenancy by the Entirety?


This is why, when acquiring residential or commercial property, it is necessary that a closing lawyer protect the owner's interest by drafting a comprehensive tenancy in common arrangement. There, the attorney can determine who will be accountable for things like the following:


An occupancy by the entirety is a legal form of ownership. It develops a right of survivorship and is available to married couples only. The enduring spouse immediately acquires the deceased tenant's residential or commercial property share if one of the joint occupants passes away.


Georgia does not recognize occupancy by the entirety. Georgia has tenants in typical, which, as discussed above, describes two or more individuals owning realty as co-owners with rights to possession and enjoyment of the residential or commercial property.


How Can a Lawyer Help Someone With Issues Related to Tenancy in Common in Georgia?


A legal representative can assist somebody with occupancy in typical problems in Georgia by supplying legal recommendations and representation. Tenancy in typical arrangements are generally more versatile than joint tenancy agreements.


Contact a lawyer, such as those discovered at the Faulkner Law Offices, for handy resources or to arrange a preliminary consultation. Call now!


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