In this day and age, when you’re looking to find a place to live, it makes sense to have a roommate or two. Living on your own can be difficult to finance, and this helps you to split the cost.

While having roommates is a smart idea, it can make moving out as a joint tenant tricky. Fortunately, you’ve come to the right place.

Whether you’re the one who’s moving out or you’re the remaining tenant, we’ll explain everything you need to know to be able to handle the situation. All you need to do is keep reading.

What Is Joint Tenancy?

Joint tenancy is a type of co-ownership of a property. This is when two or more people legally own a property together. Each person has their own legal obligations and rights when it comes to the property.

Joint tenancy can be created by couples (married or not), business partners, and friends or relatives. The agreement is made by a legally-binding deed to the property.

Each person shares half the responsibility for all payments on the property. Sharing a property like this needs to be done with someone you trust. This is because they may prove unable to pay their half, which would make you responsible.

Each party is also entitled to half the profits of the property.

This is not the same as tenancy in common. Tenancy in common usually works off of percentage-based ownership. In addition, tenancy in common allows for added tenants and the transfer of shares throughout the lifespan of the arrangement.

Joint Tenants and Moving Out

Severing a joint tenancy can be a complicated process. Each person owns an equal amount of property due to the process of splitting shares. So if three people have a joint tenancy, they each have a 33% share of the property.

If one party decides to sell their shares to another party, then those shares become a tenancy in common. While selling or transferring your shares is the easiest way to end a joint tenancy, it’s not the only way.

The joint tenancy can also be severed by express agreement to end the tenancy. In addition, a judgment can end the joint tenancy. This could be either a partition judgment or a divorce judgment.

When filing a partition action, remember that the filing of the paperwork doesn’t end the joint tenancy. Only a partition judgment can end the tenancy.

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Now that you’ve learned all about what happens when a joint tenant wants to leave, you’re well-informed in case the situation happens to you. If you have a free moment, why not consider taking a look at our website?

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