How to Co-Own Property in Florida - Understanding Your Options

Buying a piece of property in Florida, whether it be a condominium, home or raw land, is an exciting time. While many investors make individual purchases, there are also instances in which buyers wish to purchase property in conjunction with other partners. Newman-Dailey REALTOR Diane Green has outlined some of the co-ownership options available with Florida investments, including properties in Destin, South Walton and along Hwy 30A:

Tenancy in Common – This option allows the owner the greatest flexibility to transfer the property as desired. Each owner is considered a “co-tenant” with holding interest in the property and free to transfer his/her interest during life or through a will. If an owner conveys interest to another party, this third party then becomes a tenant in common with the remaining owners. The percentage of ownership can be different in this Tenancy. 

Joint Tenants - The percentage of ownership in this form must be equal interests in the property. If one of the joint tenants dies, their interest immediately ceases to exist and the remaining joint tenants own the entire property, split equally. The advantage to joint tenancy is it avoids having an owner’s interest probated upon their death. Most married people own property as joint tenants with rights of survivorship. Upon the death of one spouse, ownership is vested by operation of law in the surviving spouse. 

Note: Be aware that Tenancy in Common and Joint Tenants with right of survivorship offers no asset protection, and a creditor of either spouse may seize the interest the debtor spouse holds in joint tenant property and force the property’s sale. 

Tenancy by the Entirety - Tenants by the entireties is a special form of joint tenancy ownership which is available only to married persons. In Florida, tenants by the entireties protection has been established by judicial decisions interpreting common law. One tenant cannot convey their interest without consent, unlike the other forms of tenancy. Upon death, the interest is automatically passed on to the surviving spouse. Unmarried couples who buy property and subsequently marry each other should re-title the deed as tenants by the entirety for greater credit protection.  This form of ownership affords excellent asset protection benefits.

Be prepared early on and explain how you want to hold property to the closing attorney for greater peace of mind.  Newman-Dailey’s Real Estate Team is always a phone call away to help you get started in buying your slice of Heaven at the beach.

Ready to buy property in Destin or South Walton? Diane Green, ranked among the top 6% of Real Estate Agents by the Emerald Coast Board of Realtors, is a great local resource on real estate investments in Destin, South Walton and 30A. She can be reached by email at [email protected] or call (850) 699-7307. Learn more about Newman-Dailey's Real Estate Division online or call 850-837-1071.

Not ready to buy? Make plans for your next South Walton or Destin vacation by viewing Newman-Dailey's premier beach vacation rentals online or call one of our friendly vacation specialists at 1-800-225-7652.

See you @ the beach!

Published by Tracy Louthain
Monday, June 5, 2017