When buying real estate, you need to decide how to hold tenancy. Here are the four types available in Hawaii:
Tenancy in Severalty - Individual ownership. Property held by one person, "severed" from all others. This tenancy is usually selected by an unmarried buyer.
Tenants by the Entirety - Property held by a husband and wife, with the right of survivorship. If one spouse dies, the other spouse becomes the full owner of the property. Both spouses must agree to convey (sell) the property.
Joint Tenancy - Two or more individuals hold a property with the right of survivorship. Each individual owns an equal share of the property and the property is not legally divided for each share. Each owner has an interest in the entire property. Upon death, a joint tenant's interest belongs to surviving co-tenants. Any one tenant may convey his interest but the sale of his interest breaks his tenancy - the recipient becomes a tenant in common. Note that joint tenancy can be used by family members that cannot legally be married, such as a brother and sister, to hold property. It helps each party retain equal control of the property.
Tenancy in Common - Each co-owner has a separate legal title to his undivided interest and can convey his interest separately. Each interest is equal unless the interests are expressed otherwise in writing. No right of survivorship exists so a tenant's interest passes to his legal heirs.
Do I need expert advice?
If you have questions about the best option for your particular situation, it is recommended you speak to an attorney familiar with real estate tenancy.
