These issues relate to co-ownership of property, and if you buy a house jointly with someone else - a spouse, partner or friend then it is important to understand the difference between these terms.
If you are joint tenants then each of you jointly own the whole property (effectively in trust for each other and yourselves!). The consequence of this is that upon the death of one party, their interest in the property passes automatically to the survivor and it is therefore usual for married couples to buy a property in such manner - as most people don't bank on becoming insolvent at that time.
If the property is held as tenants in common, then each owner has a distinct share in the property - either half-each or a pre-determined share, based upon actual wishes or the amounts each party pays towards the acquisition, or any other way you decide to share the ownership. Each party owns their share of the property, and are only entitled to that share of the proceeds, and if they die then their share of the property forms part of the estate and does not automatically pass to the other owner(s).
Hope this helps - and this is where we could do with a resident lawyer as part of the panel!!!
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
