Ownership rights

When only one person owns property he or she has the exclusive right:

• To possess and control the property;
  
• To use the property for pleasure or for profit;
  
• To dispose of the property by contract, deed, grant, or lease; or
  
• To dispose of it at death, by inheritance, bequest or devise.

There are several different ways that two or more people can own a piece of property. The rights and responsibilities between co-owners of real property are determined by the laws of each state.

There are generally four types of co-ownership of property:

• Tenancy in Common;
  
• Joint Tenancy;
  
• Tenancy by Entirety;
  
• Community Property.

Tenancy in common

Individuals, spouses or corporations can be tenants in common. Each owner owns an undivided interest in the entire property as if each person was the sole owner. A tenancy in common usually has the following characteristics:

• The tenants do not have to become owners at the same time;
  
• The tenants do not have to have equal percentages of interest in the property;
  
• When a tenant in common dies, his or her property interest passes to the tenant's heirs or beneficiaries;
  
• Each tenant is entitled to use and possess the property;
  
• Each tenant is responsible for his or her share of the expenses for the property in proportion to the ownership percentage.
  
• For example, a 10% owner is responsible for 10% of the expenses, and is only be entitled to 10% of any profits from the property.

Joint Tenancy

A joint tenancy is form of co-ownership that must be specified in a written document. Each joint has the right to "inherit" the other co-owner's interest in the property at death. (This is often called the right of survivorship.)

Joint tenancies have the following characteristics:

• The co-owners acquire the property at the same time, but this is not required;
  
• Joint tenants have equal shares in the property;
  
  • For example, two joint tenants are each 50% owners.
• Joint tenants have equal rights to enter the property and use it;
  
• Joint tenants have equal responsibility to pay all expenses associated with the property;
  
• When one joint tenant dies, the remaining joint tenant or tenants receive the deceased tenant's ownership share.
  
• For example, if two people own property as joint tenants and one dies, the other becomes a 100% owner of the property. The property is not part of the deceased tenant's estate.

• If a joint tenant voluntarily or involuntarily transfers his or her interest to someone else; or
  
• If a joint tenant files a lawsuit, called a "partition action", to divide the property; or
  
• If the joint tenants agree to break the joint tenancy.

Community Property

In certain states, property purchased or received by a man or woman during their marriage is automatically held by both husband and wife as community property. The husband and wife have an equal ownership interest in the property, unless either of them can prove that it is their own separate property as required by the laws of that state.

New Jersey is not a Community Property state.

Tenancy by entirety

Only a husband and wife can be tenant by the entireties. This tenancy is created when:

• A husband and wife purchase property together and a written (a "deed") sets out both of their names designated as husband and wife; or
  
• A husband and wife enter into a lease agreement with an option to purchase the property with both of their names designated as husband and wife; or
  
• A married person that owns property transfers the property to the other spouse and himself or herself jointly in a written document with both of their names designated as husband and wife.
  
• Any document which contains the following language will create a tenancy by the entirety:
  
• "_____ and______, his wife"; or
  
• "_____ and ______, her husband".