When purchasing real estate in Vermont, it's important to understand the different ways in which you can hold title to the property. There are three main types of ownership: tenants in common, joint tenants, and tenants by the entirety. Each of these forms of ownership has its own advantages and disadvantages. In this blog post, we'll take a closer look at each of these options and what they mean for property owners in Vermont.

Tenants in Common

When property is held as tenants in common, each owner has an undivided interest in the property. This means that each owner has a specific share of ownership, but they don't necessarily own a specific part of the property. For example, if three people own a property as tenants in common, each might own a one-third share of the property, but they wouldn't necessarily have a specific portion of the property that they can call their own.

One advantage of holding property as tenants in common is that each owner has the right to sell their share of the property without the permission of the other owners. This can be helpful if one owner wants to cash out their investment or needs to sell their share for personal reasons.

Another feature of holding property as tenants in common is that if one owner dies, their share of the property will pass to their heirs rather than to the other owners. This means that the other owners might end up owning property with people they didn't choose to go into business with. Additionally, if one owner fails to pay their share of taxes or other expenses related to the property, the other owners could be held responsible.

Joint Tenants

When property is held as joint tenants, each owner has a share of ownership in the property. However, unlike tenants in common, if one owner dies, their share of the property passes to the remaining owners rather than to their heirs. This means that the last surviving owner will own the entire property. Title will automatically pass to the survivor(s) without the need for opening an estate with Probate Court. 

Tenants by the Entirety

Tenants by the entirety is a form of ownership that's only available to married couples in Vermont. When property is held as tenants by the entirety, each spouse has an equal share of ownership in the property. However, if one spouse dies, their share of the property passes to the surviving spouse rather than to their heirs.

An advantage of holding property as tenants by the entirety is that it can offer some protection in the event of a claims made against one spouse. For example, if one spouse incurs debts or legal issues, the property might be protected from being used to pay off those debts. Additionally, if one spouse dies, the surviving spouse will automatically become the sole owner of the property.