Creating lasting family memories in a stunning vacation setting is a goal many of us share. The laughter, the relaxation, the shared adventures – these are priceless. However, the financial and logistical aspects of owning a dedicated vacation home can sometimes overshadow the joy. Co ownership of property offers a wonderful solution, making these dream getaways more attainable by sharing the costs and responsibilities. This means you can focus on what truly matters: spending quality time with loved ones in a beautiful place you can call your own, without the full burden. This guide will explain how this shared ownership model works, helping you envision a more accessible path to those cherished vacation experiences.
Key Takeaways Know It’s a Partnership : Co-owning means sharing the fun of a fantastic vacation home along with the financial and upkeep responsibilities, so ensure this collaborative style works for you.Get Your Agreement Right, First before you buy.Set Up for Easy Management : Establish clear processes for making decisions, scheduling property use, and handling maintenance together to keep your shared vacation home experience enjoyable for everyone.What Exactly Is Property Co-Ownership? Have you ever dreamt of owning a beautiful vacation home but found the idea of handling all the costs and responsibilities on your own a bit daunting? Property co-ownership might be just the solution you're looking for. It’s a smart, modern way to make that dream a reality by sharing ownership with others. Think of it as teamwork for property buying, making those aspirational getaways more accessible and enjoyable for everyone involved. It’s about sharing the joy, the experiences, and yes, even the expenses, in a way that makes sense for your lifestyle.
Co-Ownership: The Basic Idea At its heart, co-ownership simply means that two or more people share legal ownership of a property. It’s not just a casual handshake deal; each owner holds a specific percentage of the property, and this is all clearly documented on the title. Imagine buying a stunning lakeside cabin or a chic mountain retreat with a few other families – each of you owns a distinct share. This shared approach is formalized through a co-ownership agreement , which is a crucial document outlining each person’s stake, responsibilities, and rights. This agreement is key to ensuring everyone is on the same page from day one, making the entire experience smooth and enjoyable for all involved.
What Kinds of Properties Can You Co-Own? The beauty of co-ownership is its versatility. While you can co-own various types of real estate, from city apartments to sprawling country estates, it’s become an incredibly popular way to access those dream vacation properties in sought-after destinations. Instead of one person or family shouldering the full financial weight, multiple co-owners can pool their resources. This often means gaining access to a higher-value property or a more desirable location than you might be able to afford on your own. Many co-owners also appreciate the flexibility that can come with this model; often, your share is yours to manage, and depending on your agreement, you might even be able to rent out your allocated time to help offset operating costs when you're not using it.
Exploring Different Ways to Co-Own So, you're excited about the idea of sharing a vacation home – fantastic! It’s a smart way to enjoy amazing properties, create lasting memories, and do so without shouldering the entire financial and maintenance load yourself. Many people find that co-owning opens doors to dream locations they might not have considered otherwise. But before you and your future co-owners start picking out furniture or planning your first getaway, it’s really important to understand that 'co-ownership' isn't a one-size-fits-all term. There are several distinct legal ways to structure this shared ownership, and each comes with its own set of rules, benefits, and potential considerations.
These structures determine crucial aspects like: Can you sell your share independently if your circumstances change? What happens to an owner's share if they pass away – does it go to their family or to the other co-owners? Are all owners required to have an equal financial stake, or can shares vary based on contribution or use? Getting clear on these different frameworks is a foundational step. It helps ensure that the arrangement aligns with everyone’s long-term goals and financial situations, and can prevent significant misunderstandings or conflicts later on. Think of it as building a strong foundation for your shared property venture. Choosing the right co-ownership model is just as important as picking the right property. Let’s walk through the most common options you'll likely encounter, so you can discuss them confidently with your co-owners and legal advisors.
Understanding Tenancy in Common (TIC) Tenancy in Common, often called TIC, is a really flexible way for several people to co-own a property together. What’s unique here is that owners can hold different percentages of ownership – for instance, one person might own 50%, while two others each own 25%. A key feature of TIC is that each owner generally has the freedom to sell, transfer , or even take out a mortgage on their specific share without needing the green light from all the other co-owners. If an owner in a TIC arrangement passes away, their share of the property doesn't automatically go to the other co-owners. Instead, it becomes part of their estate and is passed on to their designated heirs, like family members named in a will. This makes TIC a popular choice for groups of friends or family members who want clear, individual ownership stakes.
Understanding Joint Tenancy with Right of Survivorship (JTWROS) Joint Tenancy with Right of Survivorship, or JTWROS, is another common way to co-own property, and you’ll often see it used by married couples. With JTWROS, a fundamental rule is that all co-owners must have equal shares in the property. The most distinctive feature, though, is the 'right of survivorship.' This means if one co-owner passes away, their share automatically and directly transfers to the surviving co-owner(s). This transition happens outside of the often lengthy and complicated probate process, which can be a big relief for the remaining owners. It simplifies how ownership changes hands and ensures the property stays with the surviving joint tenants.
Understanding Community Property Community Property is a specific legal concept that applies to married couples, but only in certain states. The main idea is that most property acquired while a couple is married is considered jointly owned by both spouses, with each having an equal share. This holds true even if only one spouse’s name is on the deed or if one spouse’s income was primarily used for the purchase. It’s a good idea to find out if you live in a community property state when you're buying a property with your spouse, as this framework significantly impacts how ownership rights are viewed and how the property might be divided in the event of a divorce or if one spouse passes away.
Understanding Tenancy by the Entirety (TBE) Tenancy by the Entirety, or TBE, is a special form of co-ownership designed exclusively for married couples, and it's only available in some states. Similar to JTWROS, TBE includes a right of survivorship, meaning if one spouse passes away, the surviving spouse automatically becomes the sole owner of the entire property. A significant benefit of TBE is that it often provides stronger asset protection for the home, potentially shielding it from the individual debts of just one spouse. Crucially, under TBE, neither spouse can sell their interest or transfer the property without the explicit consent of the other. The law essentially views the married couple as a single, unified owner.
The Perks of Sharing Property Ownership One of the biggest draws of co-owning a property, especially a vacation home, is how it opens up a world of possibilities that might seem out of reach otherwise. It’s about making dream vacations a regular part of your life, without the traditional financial strain of sole ownership. When you share ownership, you’re not just splitting the cost; you’re multiplying the joy and the experiences. Let's look at some of the fantastic benefits.
Share Costs, Expand Your Possibilities Let's be honest, owning a second home, particularly in a sought-after vacation spot, comes with significant expenses – from the mortgage and property taxes to insurance and upkeep. When you explore co-ownership , these costs are divided among the owners. Suddenly, that stunning mountain cabin or beachside retreat becomes much more attainable. It’s not just about making it affordable; it’s about making it smarter. By sharing these financial responsibilities, you free up resources. This might mean you can consider a more luxurious property or simply have more peace of mind knowing the financial load is lighter. Many co-owners find that sharing these operational costs, sometimes offset by renting out unused time, makes the dream of a vacation home a sustainable reality.
Access Your Dream Vacation Home We all have that picture in our minds, right? The perfect vacation spot where you can unwind and create lasting memories. For many, though, the price tag on that dream home can feel like a barrier. This is where co-ownership truly shines. By pooling resources with other like-minded individuals or families, you can discover properties that might have been financially impractical on your own. Think about it – that gorgeous ski-in/ski-out chalet or the villa with a breathtaking ocean view could be yours to enjoy for a fraction of the total cost. It’s a fantastic way to experience luxury and comfort in your home-away-from-home without shouldering the entire financial commitment. This model is becoming increasingly popular as people look for smarter, more flexible ways to enjoy the best life has to offer.
Enjoy Flexible Use of Your Property Co-ownership isn't just about sharing costs; it's also about sharing time in a way that works for everyone involved. Different co-ownership structures offer a good deal of flexibility, allowing you to tailor usage to fit various needs. With a company like Fraxioned, you typically purchase a share that corresponds to a certain amount of time at the property each year. Scheduling systems, often managed through a dedicated owner portal like the myFRAX Portal , help ensure everyone gets fair access. This allows you to plan your getaways, enjoy your dedicated weeks, and even offer unused time to other owners or, if the agreement allows, rent it out to help cover operating expenses. It’s a practical approach that respects everyone’s investment and desire to enjoy the home.
What to Watch Out For When Co-Owning Sharing a vacation home is an amazing way to make luxury more accessible and create lasting memories with your loved ones. It’s a fantastic path to enjoying those dream getaways you’ve always imagined, without taking on the entire responsibility alone. Like any shared venture, though, it’s smart to go in with your eyes open. Being aware of potential bumps in the road doesn’t mean they’re inevitable; it simply means you can plan for them. This proactive approach is key to ensuring your co-owning experience is smooth and enjoyable for everyone involved. Think of it as laying a strong foundation for years of happy vacations. A little foresight goes a long way in keeping the focus on relaxation and fun, rather than on sorting out preventable issues. When you explore co-ownership options , understanding these considerations transforms them from potential worries into manageable checkpoints. It’s all about being prepared so you can concentrate on what truly matters: making the most of your beautiful shared property and the precious time you spend there. This preparation helps ensure that the journey of shared ownership is as pleasant as the destination itself, allowing everyone to feel secure and respected within the arrangement. Ultimately, a well-thought-out approach protects your investment in joy and shared experiences.
Handling Potential Co-Owner Disagreements Even with the best intentions and the closest friends or family, differences in opinion can pop up. When you share ownership of a property , disagreements might arise over anything from how the property is managed to bigger decisions, like if or when to sell. The key to smoothly handling these situations is to anticipate them. This is where a comprehensive co-ownership agreement becomes invaluable. It’s your group's playbook, outlining how decisions are made and disputes are resolved. By discussing potential scenarios and agreeing on processes upfront, you ensure everyone is on the same page, which significantly reduces the chance of conflict later on. This clarity helps maintain positive relationships and keeps the focus on enjoying your shared home.
Understanding the Legal and Financial Details Getting the legal and financial framework right from the start is crucial for a stress-free co-ownership experience. This means having a crystal-clear, written agreement that details how expenses, any potential rental income used to offset costs, taxes, and other responsibilities are divided among the co-owners. It’s not just about who pays for what; it’s also about understanding the type of co-ownership that best fits your group’s needs. Because these details can get complex, it’s often a good idea to consult with professionals who understand property law and co-ownership structures. They can help you make informed choices and ensure your agreement is thorough and fair to everyone, setting a solid foundation for your partnership.
Making Decisions Together Effectively One of the unique aspects of co-owning a property is that decisions, big and small, are typically made as a group. This collaborative approach is great for ensuring everyone feels involved, but it can sometimes slow things down if you don't have a clear process. For instance, all co-owners generally need to agree on how the property will be used, any rules for guests, and plans for maintenance or upgrades. To keep things moving efficiently, it's wise to establish your decision-making rules within your co-ownership agreement. This might include setting thresholds for when a simple majority is enough versus when unanimous consent is required, helping to streamline day-to-day management and larger choices alike. This ensures everyone's voice is heard without causing unnecessary delays.
Crafting Your Co-Ownership Agreement So, you're picturing yourself in a gorgeous co-owned vacation home – that's wonderful! Before you dive deep into those daydreams of mountain vistas or serene lakeside mornings, there’s a really crucial step: putting together a solid co-ownership agreement. Consider this agreement your roadmap for this shared home adventure. It’s a written document that clearly spells out everyone’s roles, rights, and responsibilities. Tackling this before you even sign on the dotted line for a property is essential for a smooth and happy experience for everyone. A carefully crafted agreement helps sidestep future confusion and makes sure all co-owners are aligned from the get-go. It’s truly about setting clear expectations so you can all focus on creating those amazing memories together.
What Your Agreement Must Cover Think of your co-ownership agreement as the foundation for a great shared experience. It’s so important that this document is thorough and easy to understand. As the property pros at Pacaso highlight, "A written co-ownership agreement is crucial, covering ownership shares, responsibilities, decision-making, and exit strategies. It should be created before purchasing the property." So, what does that mean for you? "Ownership shares" clearly state the percentage of the property each person owns. This usually connects to how much everyone contributes financially and how any future proceeds from a sale might be divided. "Responsibilities" cover who takes care of what – things like paying bills, organizing maintenance, or even managing bookings if you decide to rent out unused time to help with costs.
It's also key to clearly outline the "decision-making" process. How will you all agree on things like redecorating, or what happens if a major repair pops up? And finally, "exit strategies" create a clear path for when a co-owner might want to sell their share. It might feel like a hefty checklist, but getting these details ironed out in your co-ownership agreement from the start can prevent so many potential misunderstandings later.
Setting Up Your Decision-Making Rules When you're sharing a property, there will always be decisions to make – from small things like routine upkeep to bigger choices about the home. Your co-ownership agreement should clearly map out how you'll handle these. The folks at August Collections put it well: "Co-ownership requires a detailed legal agreement outlining everyone's rights and responsibilities. All owners need to agree on the property's use and maintenance." This really means getting together and setting up your 'rules of the road.' For instance, how will you manage everyday decisions? Will one person take the lead, or will it be a simple majority vote? And what about those larger decisions, like starting a renovation or switching property managers? Those might need everyone to be on board.
It’s a smart idea to categorize different types of decisions and decide on a process for each. If ownership shares aren't equal, you’ll also want to clarify how votes are counted. Writing all this down ensures everyone knows how things work and that every owner’s voice is considered. This kind of proactive planning helps keep things friendly and lets you all concentrate on enjoying your shared vacation spot. You can often find helpful insights into how these arrangements work by checking out a company's FAQ section .
Planning for Exits and Buyouts Life is full of changes, and sometimes a co-owner's plans might shift. That’s why having a clear plan for what happens if someone decides to sell their share is a really important part of your co-ownership agreement. It’s so much easier to figure this out at the beginning, rather than being caught off guard later. As SAM Conveyancing explains, there are "Two main ways to receive your share: 1. Buy-Out: One co-owner buys the other's share (a transfer of equity). 2. Sale: The property is sold, and proceeds are divided according to ownership shares." Your agreement needs to spell out exactly how these situations would play out.
For a buyout, you’ll want to specify how the share’s value will be determined – maybe using an independent appraiser – and if the other co-owners get the first chance to buy that share. If the decision is to sell the entire property, the agreement should outline that process too. Thinking about how shares are structured right from the start can help make any future transitions much more straightforward. By considering these possibilities and writing down the procedures, everyone gets a sense of security and clarity, ensuring things are handled fairly if someone needs to move on.
Key Legal Points for Co-Owners Sharing a vacation home is an exciting prospect, but it’s smart to get a handle on the legal side of things from the get-go. A little preparation here goes a long way in making sure your co-ownership journey is smooth and enjoyable for everyone involved. Think of it as laying a strong foundation for all those wonderful memories you’re about to create with your loved ones. Getting these details sorted out early means more time for relaxation and fun later.
Essential Documentation You'll Need First things first: a written co-ownership agreement is absolutely essential. Seriously, this isn't something to skip or put off! This document should be created before you even think about purchasing the property. It’s your roadmap, clearly outlining everyone's ownership percentage, who's responsible for what (like paying bills or handling repairs), how decisions will be made, and what happens if someone wants to sell their share. Clearly defining ownership from the start is your best defense against future misunderstandings.
Another key document often used is a Deed of Trust. This is a formal legal paper that explicitly states each owner's share in the property. It’s one of the clearest and most legally sound ways to set out who owns what, providing peace of mind for all co-owners and ensuring everyone is on the same page regarding their stake.
How Co-Ownership Affects Your Taxes When you co-own a property, you each own a percentage of it, and this has tax implications. Your co-ownership agreement should detail how financial aspects, including taxes, are managed. While the main goal of co-owning a Fraxioned home is to enjoy amazing vacations and create lasting memories, it's still important to understand your tax responsibilities.
For instance, if you decide to rent out your unused time to help offset operating costs, this will also have tax considerations. Each owner will need to report their share of any rental income and expenses. It’s always a good idea to consult with a tax professional to understand how co-ownership will specifically affect your situation and ensure you're meeting all requirements.
Navigating Local Property Laws Property laws can be a bit of a maze, and they often change depending on where your vacation home is located and the type of property it is. This is why having that clear, written agreement we talked about is so important—it helps everyone understand their rights and responsibilities within the local legal framework.
Choosing the right structure for your co-ownership arrangement is also key to protecting everyone's interests and avoiding potential legal headaches down the road. Since rules can differ, especially if you're looking at properties in various beautiful spots, it’s wise to get familiar with the specific regulations in the area you're considering. If you have questions about local laws for a particular property, reaching out for specific guidance is a smart move.
How to Manage Your Shared Property Smoothly Owning a property with others can be an amazing experience, but like any partnership, it thrives on good management. Making sure everyone is on the same page about day-to-day operations, upkeep, and usage is key to a harmonious co-ownership. When these aspects are handled well, you can truly focus on making memories and enjoying your shared space. Let's look at a few practical ways to keep things running like a well-oiled machine, ensuring your vacation home remains a source of joy, not stress.
Considering Professional Property Management One of the first things you and your co-owners might discuss is how to handle the ongoing management of your shared home. If your property is intended to be a relaxing getaway, the last thing you want is for it to become a source of stress due to management tasks. This is where professional property management can be a game-changer. Companies specializing in co-ownership often include these services, taking things like maintenance, repairs, and sometimes even rental administration off your plate.
While some co-owners enjoy sharing these responsibilities, especially if the property is primarily for personal use, having a professional service ensures tasks are handled consistently and expertly. This can be particularly helpful for vacation homes, where you might not be physically present year-round to address issues. It frees everyone up to simply enjoy their time at the property, knowing the practicalities are covered.
Sharing Maintenance and Upkeep Duties Whether you opt for professional management or decide to handle things yourselves, clear communication about maintenance is crucial. Every property needs regular care, from routine cleaning to unexpected repairs. Since each co-owner holds an interest in the entire property, it’s important to agree on how these responsibilities will be shared. This ensures your beautiful shared home stays in great condition for everyone to enjoy for years to come.
A good first step is to create a detailed maintenance plan and budget as part of your co-ownership agreement. This plan can outline who is responsible for what, how costs will be divided, and a schedule for regular upkeep. For companies like Fraxioned, these maintenance services are often part of the package, which you can learn more about in their FAQ . If you're managing upkeep yourselves, make sure everyone agrees on standards and processes upfront to keep things fair and transparent.
Scheduling Time Fairly at Your Property One of the most exciting aspects of co-owning a vacation home is, of course, using it! But to make sure everyone gets a fair chance to enjoy the property, you'll need a clear and equitable scheduling system. This is especially important because each co-owner typically has the right to use the property, and a good system prevents conflicts and ensures everyone feels they're getting good value from their share.
There are many ways to approach scheduling. Some co-owners use a rotating draft system, others might have fixed weeks, or you could use a points-based system for more flexibility. Many modern co-ownership platforms, like Fraxioned's myFRAX Portal , offer sophisticated, easy-to-use online systems for booking your stays. The key is to choose a method that everyone agrees on and that is clearly outlined in your co-ownership agreement. This transparency helps ensure all co-owners have equitable access and can plan their cherished getaways.
Is Co-Ownership the Right Fit for You? Deciding to co-own a property is a big step, and it’s exciting to think about sharing a beautiful vacation home. But before you jump in, it’s smart to pause and consider if this path truly aligns with your personal and financial situation. Answering a few key questions can help you determine if co-ownership is the ideal way for you to enjoy a dream vacation home. Let's walk through some important considerations to help you make an informed choice.
Taking a Look at Your Finances One of the most attractive aspects of co-ownership is how it makes purchasing a property more accessible. Instead of shouldering the entire financial weight yourself, co-ownership lets multiple people share the property's ownership, with each person holding a percentage that's officially listed on the title. This means you can pool your money with others, which often makes buying a home easier and faster. You'll likely find you need a smaller down payment, and you can even combine your borrowing power if you're looking into financing options . It’s a practical way to get your foot in the door of a property you might not be able to afford on your own.
Does Co-Ownership Align with Your Goals? Beyond the numbers, think about what you want to achieve with a property. Is your main goal to have a wonderful vacation spot for creating memories, without the full financial commitment of sole ownership? If so, co-ownership could be a fantastic fit. It's a viable option for those who dream of owning property but find it challenging to do so alone. However, it’s not just about affordability; it also requires careful planning and open communication. Choosing the right type of co-ownership structure is also really important for protecting your interests and making sure the arrangement suits your lifestyle and long-term plans.
Finding the Right People to Co-Own With The people you share your vacation home with, or the framework of the co-ownership, plays a big part in your experience. While Fraxioned helps streamline the process of shared ownership, it's important to be comfortable with the model itself. A well-drafted co-ownership agreement is absolutely essential for a smooth experience, clearly outlining responsibilities, usage schedules, and how changes or exits are handled. Understanding all the terms before committing ensures everyone is on the same page. If you have specific questions about how this works, it's always a good idea to reach out and get clarity.
Your Roadmap to Successful Co-Ownership Embarking on a co-ownership journey is exciting, and a little groundwork can make all the difference for a smooth and enjoyable experience. Think of these steps as your friendly guide to making shared ownership work beautifully for everyone involved. By focusing on clarity, good advice, and open dialogue from the start, you're setting the stage for years of wonderful memories in your shared vacation home.
Get Expert Legal and Financial Guidance Before you dive in, it’s wise to chat with professionals who live and breathe property matters. A real estate attorney can be incredibly helpful in walking you through the different ways you can structure co-ownership and figuring out what makes the most sense for your specific situation and goals. They can help clarify the nuances of ownership types and ensure your interests are well-represented.
Even when working with a service like Fraxioned that simplifies many complexities, understanding the legal and financial commitments from your personal perspective is key. This step isn't about adding hurdles; it's about empowering you with knowledge so you can proceed with confidence.
Create a Solid, Comprehensive Agreement A clear, written co-ownership agreement is your best friend in this venture. Ideally, this document should be in place before any property purchase. It’s the cornerstone of a successful partnership, detailing everything from ownership percentages and financial responsibilities to how decisions will be made and what happens if someone wants to sell their share. Think of it as the rulebook that everyone agrees to play by, ensuring fairness and transparency.
With Fraxioned, a professionally prepared co-ownership agreement is part of the package, which takes a lot of the guesswork out for you. This agreement will cover crucial aspects like usage schedules, upkeep, and how costs are shared, ensuring everyone is on the same page from day one.
Keep Communication Open and Clear While a strong agreement lays the foundation, ongoing communication keeps the co-ownership experience running smoothly. Disagreements can sometimes pop up, especially when it comes to managing the property or deciding on its use, so having clear lines of communication is essential. It's important that all co-owners are on board with how the property will be used and maintained.
Regular check-ins, whether formal or informal, can help address small issues before they become larger concerns. Platforms like Fraxioned's myFRAX Portal can also streamline communication around scheduling and property updates. Ultimately, fostering a respectful and open dialogue among co-owners helps ensure that the shared vacation home remains a source of joy and relaxation for everyone.
Related Articles I love the idea of a vacation home, but the cost is a big hurdle. How does co-ownership actually make it more affordable? That's one of the most wonderful things about co-ownership! Instead of one person or family taking on the entire purchase price, mortgage, property taxes, insurance, and upkeep, these costs are shared among all the co-owners. This often means you can enjoy a much nicer property or a more desirable location than you might have considered on your own. Plus, with a company like Fraxioned, your share, typically between 1/8th and 1/13th, makes that dream home a much more manageable reality. Many co-owners also find that being able to rent out their unused allocated time can help offset some of those ongoing operating expenses, making it even more sustainable.
With several owners, how do we make sure everyone gets a fair chance to use the property? This is a super important point, and it’s all about having a clear and fair system from the start. Most co-ownership setups, especially with companies like Fraxioned, use a well-thought-out scheduling system. This is often managed through an online portal, like our myFRAX Portal, where you can see availability and book your stays. The rules for how time is allocated – whether it's a rotating schedule, a draft system, or based on the share you own – are all clearly laid out in your co-ownership agreement. This transparency ensures everyone gets equitable access to enjoy the home.
Life changes! What if one of us needs to sell our part of the home down the road? That’s a very practical question, and it’s something a good co-ownership agreement always addresses. Your agreement will outline an "exit strategy," which details the process if a co-owner decides they want to sell their share. Often, the other co-owners might have the first opportunity to buy that share. If not, the agreement will specify how the share can be sold to an outside party. With Fraxioned, we aim to make this process as straightforward as possible, as we understand that circumstances can evolve.
You mentioned a 'co-ownership agreement' a lot. Why is it so crucial, and what are the must-haves in it? Think of the co-ownership agreement as the essential playbook for your shared property. It’s so important because it puts everything in writing, ensuring all co-owners are on the same page from day one and helping to prevent misunderstandings later. Key things it absolutely must cover include each owner's percentage of ownership, how all the ongoing expenses (like maintenance, taxes, and insurance) are divided, and the process for making decisions about the property. It also details the rules for using the property, including scheduling, and, as we just discussed, what happens if someone wants to sell their share.
I've heard terms like 'Tenancy in Common' and 'Joint Tenancy.' What's the practical difference for co-owners? Those legal terms can sound a bit confusing, but the main differences are pretty straightforward. With Tenancy in Common (TIC), co-owners can hold different percentages of the property – say, one person owns 50% and two others own 25% each. Also, if a co-owner in a TIC passes away, their share typically goes to their heirs, as outlined in their will. Joint Tenancy with Right of Survivorship (JTWROS) usually means all co-owners have equal shares. The "right of survivorship" part is key: if one co-owner passes, their share automatically goes to the surviving co-owner(s), bypassing probate. Fraxioned typically utilizes a structure that provides clarity and ease for vacation home enjoyment, and we can walk you through the specifics for any property you're interested in.
