Common or community ownership is not without risks. Although later in life, individuals often wish to add “other names” to their property as a means of estate planning without legal fees, this can bring additional risks of embezzlement. For tax reasons, each spouse can benefit from half of the total community wealth. Finally, in a living trust, spouses can create a common option in which both persons are fellows and agents. You can register individual assets or co-ownerships in these trusts. Anyone can revoke their trust in their lifetime. The common lease is a form of property that is normally related to real estate. Two or more parties meet simultaneously to conclude, through an act, a legally binding agreement. These parties may be relatives, friends or even business partners.
Suppose, for example, that an unmarried couple buys a house. At the time of purchase, they opt for a common lease. The deed on the property will designate the two owners as common tenants. If the roommates are tenants, it means that they have separate and different legal shares in the property. These actions may or may not be equal. To determine each tenant`s share of economic interests, it is necessary to examine the contributions made and any act or agreement with respect to the economic interest. If community contributions are uneven and there is no explicit explanation of economic interests, it is normally assumed that the roommates are tenants. The right to rent together is a form of condominium property, each owner having a separate and distinct share of the property. When purchasing a common good, it is very important to ensure that the exact shape of the property and the conditions between them are known in order to avoid any right of ownership in the future.
A particular form of common lease is “Tenancy in Entirety,” where a man and a woman agree to hold a property in equal shares. Both cannot sell the property without the consent of the other. That`s the survival rule. Therefore, a rental home in a complete situation ends only in the event of divorce, death or mutual agreement between the couple. The property transfer document (i.e. Form TR1) should contain an explicit declaration of interest from the remaining owners, as they plan to retain the property. A declaration that they hold the property “for themselves as a common tenant” (i.e., as an equally advantageous tenant) is mandatory if it is duly executed by each co-owner by written signature.  Otherwise, the respective interests of each co-owner must be determined according to the principles of constructive trust. For example, A and B may be equal tenants for two years, after which they agree to add C to the property. A and B can now decide to own 25% of the property, while C can own 50% of the property. The share of each co-owner is therefore different. Section 44 of the Property Transfer Act, 1882 provides for the transfer of ownership by a co-owner and the rights conferred on him.
It is not necessary to go through the estate system, because a common lease creates a right of survival.