The Cebu property industry has become a fast-growing business. Because of this, a lot of people have jumped into the bandwagon and became tenants in keeping. But exactly what is a tenant in keeping? This article will explain how it is and what it involves.
Tenants in common, also referred to as tenancy in keeping, is really a strategy for sharing a home. The number of tenants owning home may vary from two to greater hundred. They may also be related or otherwise not related. In addition to that, these tenants could also have equal or unequal shares with the property. For example, Smith owns 50% of the property, while Brown and Cook may own 30% and 20% respectively. Their shares are mainly dependent on how much cash they invested to acquire the exact property.
Each tenant in keeping owns a unique portion in the house that has not yet been divided among co-tenants. Co-tenants are the heirs of the tenant in common who may or may not certainly be a relative. So, the tenants in accordance could have different purposes for the exact property. The only reason which brings them together to ownership is they share just one property. And while their tenancy in accordance continues, there’s no distinction on who owns a certain part in the property.
Right of Survivorship
In tenants in keeping, there isn’t any right of survivorship. Unlike in joint tenancy wherein when an owner from the property dies, his shares go to the surviving tenant. But in tenants in accordance, his share will go to his estate. After which, his share with the property will likely be passed-on or inherited to whomever he wished in accordance with his will. This usually happens in joint-venture businesses. Wherein when two persons own a small business property and something from the co-owner dies, the beneficiaries with the deceased will inherit his shares rather than one other tenant.
Ending Tenancy in Common
When one from the owners in the property in tenancy in keeping desires to end his share or part, he could do so by receiving a partition of property. This is done by dividing the house or lot into distinctly owned parts, or selling the entire property after which divide the proceeds. Either way is dependent upon the zoning rules with the local land use with the area.
If any with the homeowners cannot agree to the division in the property, they could pursue a court ruling to find out the actual way it should be divided. The court will either order partition in kind wherein each owner can have a particular part of the property. Or a partition by sale wherein the home will likely be sold and the proceeds are divided to every from the owners.
Each co-owner in the property contains the to certainly a partition. Unless when the co-owners had an agreement together, the judge may waive that right either permanently, for a specific time-period, or according to the circumstances.