Most people assume that if you own property, you own property, and that’s the end of it.  However, when more than one person owns that property, South Carolina law provides for several different ways to hold title.  Three methods are covered below, and this article should be considered a brief overview of the differences between the three.  As in all legal situations, many factors go into deciding what’s right for you, so please ask questions and share information with your lawyer before choosing one option.  Also, don’t be fooled by the word “tenant” in these descriptions – although we typically think of a tenant only in a rental situation, the legal definition includes owners as well as renters. 

(1)          Tenants In Common.  This is the most common way for multiple people to own property – “John Doe and Jane Roe.”  In this situation, each person owns an undivided interest in the property.  This interest is usually 50/50 (or equally shared if more than two), but it doesn’t have to be.  Tenancy In Common can be divided among the owners in any percentages the owners may choose.  If you own property as a Tenant In Common, you can sell or transfer your interest in the property to someone else, without the consent of the other co-owners.  When one of the owners dies, that person’s interest in the property passes through his or her estate, and will ultimately be owned by the deceased person’s heirs or devisees.

 (2)          Joint Tenants with Rights of Survivorship.  This is an increasingly common way to hold title, especially among married couples or other family members.  As with Tenants In Common, Joint Tenants own the property in undivided shares, and may transfer their interests to others.  However, any transfer to a third party will sever the Joint Tenancy and convert the ownership to Tenants In Common.  The benefit to holding title as Joint Tenants with Rights of Survivorship is this: when one of the owners dies, that person’s interest does NOT pass through his or her estate, but instead automatically transfers to the surviving owner(s).  Many married couples and families use this as part of their estate planning.

 (3)          Tenants In Common with Rights of Survivorship.  As you might think, this is basically a combination of the previous two methods of holding title.  However, there is one important difference.  In this situation, one owner may NOT transfer his or her ownership interest to a third party without the consent of the other co-owner(s).  In other words, if you change your mind about your ownership interest, or even if you get divorced from your spouse, the way title is held cannot be changed without the participation and consent of all owners.  There is a potential advantage to holding title in this way, although South Carolina courts have not yet ruled on this issue.  In other states that recognize this estate, creditors cannot reach the property to satisfy debts of only one owner, but can only reach the property to satisfy joint debts of all owners.  The Right of Survivorship aspect of this ownership also means that upon the death of one owner, that owner’s interest vests automatically, without going through probate, in the surviving owner(s).  Therefore, if South Carolina ultimately limits creditors’ rights in this setting, holding title as Tenants In Common with Rights of Survivorship could become an important asset protection tool, as well as an estate planning tactic.