Mutual Agreement Sever Joint Tenancy
Mutual Agreement to Sever Joint Tenancy: What You Need to Know
If you co-own a property with someone, you may have heard the term “joint tenancy” before. Joint tenancy is a common form of property ownership where two or more people own the property together, and each person has an equal share of the property. When one of the owners dies, their share automatically passes to the surviving owner(s) under the right of survivorship.
However, there may come a time when one or both co-owners want to sever the joint tenancy. This means that they want to end the right of survivorship and convert the joint tenancy into a tenancy in common. In order to do this, both co-owners must agree to sever the joint tenancy. Here`s what you need to know about mutual agreement to sever joint tenancy.
What is a Joint Tenancy?
A joint tenancy is a form of property ownership where two or more people own the property together. Each co-owner has an equal share of the property, and when one owner dies, their share automatically passes to the surviving owner(s) under the right of survivorship. This means that the surviving owner(s) will own the entire property.
Why Would You Want to Sever a Joint Tenancy?
There are a few reasons why co-owners may want to sever a joint tenancy. For example, they may want to:
– Sell their share of the property
– Leave their share of the property to someone other than the surviving co-owner(s)
– Protect their share of the property from the creditors or legal claims of the surviving co-owner(s)
How to Sever a Joint Tenancy
To sever a joint tenancy, both co-owners must agree to do so. This is known as a mutual agreement to sever. In order to make the severance legally binding, the co-owners must execute a document called a “deed of severance” or “notice of severance.” This document should be registered with the Land Registry to make the change official.
Once the joint tenancy has been severed, the co-owners will each own a distinct share of the property. This means that when one co-owner dies, their share will not automatically pass to the surviving co-owner(s). Instead, it will pass according to their will or intestacy rules.
Conclusion
Severing a joint tenancy is a relatively straightforward process as long as both co-owners agree to it. It`s important to note that severing a joint tenancy can have significant legal and financial implications, so it`s important to seek the advice of a legal professional before making any changes to your property ownership. If you`re considering severing a joint tenancy, make sure you understand the implications and consequences before making a decision.
