Source: Best Practices Usually when a person buys a property with someone else, they do so with a spouse. But with the price of real estate these days in most major cities, just as people rent houses on a share basis, so are more and more people are opting

to buy with a friend or business partner, either to live in together or to rent out as an investment. The two types of contract available are Joint Tenancy and Tenancy in Common. Both types of contract allow for the owners to sell their share of the property to someone else, but they are different in other crucial ways. As a joint tenant you are entitled to possession of entire property, but if you die, your Joint Tenant automatically owns the property no matter what your will says. Therefore this type of contract is normally only used by people in a close relationship If the contract specifies that you and your co-owner are Tenants in Common, that means that you can leave your share to a friend, child or other person in your will. This form of ownership is suitable for people making a business venture, or for friends who are using shared ownership as a means of getting into the market at a lower figure than if they were to buy a whole property by themselves. (The arrangement can be 50/50 or any other ratio that works for the parties involved.) Note: Always obtain your own individual legal advice as it relates to your specific circumstances. This article is intended to be general advice only.