The Cebu real estate industry has latterly become a fast-growing business. Because of this, a lot of mass have jumped into the bandwagon and became tenants in common. But what is a tenant in common? This article will explain what it is and what it involves.
Meaning
Tenants in common, also known as tenancy in common, is a way of sharing a property.
The list of tenants owning a property may run from two to more than a hundred. They may likewise be related or not related. In gain to that, these tenants may likewise receive equal or unequal shares of the property. For example, Smith owns 50% of the property, while Brown and Ready may own 30% and 20% respectively. Their shares are largely dependent on the number of money they invested to take the property.
Property
Each tenant in common owns a particular part in the place that has not yet been shared among co-tenants. Co-tenants are the heirs of the tenant in common who may or may not be a relative. So, the tenants in common may make different purposes for the property. The sole ground which brings them together to ownership is that they part a single property. And while their tenancy in common continues, there is no distinction on who owns a particular section of the property.
Right of Survivorship
In tenants in common, there is no good of survivorship. Unlike in joint tenancy wherein when an owner of the property dies, his shares will go to the surviving tenant. But in tenants in common, his part will go to his estate. After which, his part of the place will be passed-on or transmitted to whomever he wished according to his will. This normally happens in joint-venture businesses. Wherein when two persons own a business property and one of the co-owner dies, the beneficiaries of the deceased will inherit his shares and not the other tenant.
Ending Tenancy in Common
When one of the owners of the place in tenancy in common wishes to end his part or part, he may do so by obtaining a zone of property. This is done by dividing the place or lot into distinctly owned parts, or marketing the total property and so split the proceeds. Either way depends on the zoning rules of the local land use of the area.
Court Intervention
If any of the property owners cannot match to the class of the property, they may follow a court opinion to see how it should be divided. The tribunal will either order partition in kind wherein each owner will now take a particular piece of the property. Or a division by sale wherein the place will be sold and the proceeds are divided to apiece of the owners.
Rights
Each co-owner of the place has the good to a partition. Unless if the co-owners had an arrangement with each other, the tribunal may waive that good either permanently, for a specific time-period, or depending on the circumstances.
Being a co-owner of a single property may mean having responsibilities, too. But the right thing about it is that, they are not enforced. A co-owner can do whatsoever he wants with his share of the property or still do nothing at all, but still have his part of the profit that it can make. If you need to live more about Cebu real estate, please visit PhilCebu Properties.
Being a co-owner of a single property may mean having responsibilities, too. But the right thing about it is that, they are not enforced. A co-owner can do whatsoever he wants with his share of the property or still do nothing at all, but still have his part of the profit that it can make. If you need to live more about Cebu real estate, please visit PhilCebu Properties.
Article Source: Significance of Tenants in Green in Real Estate
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