One reason a tenancy in common
is preferable for property held for investment or rental purposes is that this form of joint ownership generally does not create a separate business entity for federal tax purposes.
Massachusetts is a title-theory state, which means that if a joint tenant unilaterally mortgages the joint tenancy property, the property becomes a tenancy in common
, because it destroys the unity of title.
Because the law of tenancy in common
de facto favors partition by sale over partition in kind, the exit of one co-tenant often means that any tenant who values the property because of its identity characteristics will be forced to sell.
If time allows, it is advisable to have the tenancy in common
own the property for a long enough period so that it can collect a rent check from a tenant at the property or conduct some business activities in its own name at the property in order to document the investment, trade or business requirement.
Thankfully, the tenancy in common
inclusion rule is an easy one.
If you decide to hold the property as joint tenants but then wish to split your interests, the joint tenancy can be severed and turned into a tenancy in common
at any time.
Brian Ezratty, vice chairman, along with Jeffrey Troy, senior director, and Louis Ricci, director represented the sellers, a group of private investors and members of the Lefkowitz Family, who owned a portion of the property in a tenancy in common
with the Troy family.
Decide if your agreement will be a joint tenancy or a tenancy in common
. Many couples will opt for a joint tenancy that means the property is owned equally and will automatically pass to the other person if one person dies.
Only for the purposes of any bankruptcy proceeding under Title 11 U.S.C., the doctrine of tenancy by the entirety is hereby abolished and all property held as such shall now be considered to be held as a tenancy in common
. In relation to [sections] 522(b)(2)(B) of the Bankruptcy Code of 1978 (11 U.S.C.