There are four common ways homeowners take title to real estate in Florida:
- Tenancy in common – Tenancy in common is the default form of ownership in Florida for homeowners that are not married.
Ownership – With a tenancy in common, owners share ownership rights, and all areas of the property are owned equally, even if the owners have different shares of ownership interest. Owners can own any percentage of the ownership interest, but the default is that the owners own interest equally unless percentages are specified in the deed. Owners may sell or lease their interest in the property to another without the other owners having to sell their shares. An owner can transfer their ownership to another party without the consent of the other tenants.
Death of an owner – When one owner dies, the property passes to that owner’s estate and probate is usually required.
No creditor protection – If the property is not homestead, then creditors of one owner can place a lien on that owner’s interest to satisfy debt. - Joint tenancy – A joint tenancy can only be created if specific language is added to the deed. The deed must state that the owners are taking title “as joint tenants.”
Ownership – Has all the same features as a tenancy in common, but joint owners must have equal percentages of interest in the real property.
Death of an owner – A basic joint tenancy does not avoid probate. When a joint tenant dies, heirs of the joint tenant inherit the property. To avoid probate, right of survivorship language needs to be added to the deed.
No creditor protection – If the property is not homestead, then creditors of one owner can place a lien on that owner’s interest to satisfy debt. - Joint tenancy with right of survivorship – A joint tenancy with right of survivorship can only be created if specific language is added to the deed. The deed must state that the owners are taking title “as joint tenants with right of survivorship.”
Ownership – Has all the same features as a tenancy in common, but joint tenants must have equal percentages of interest in the real property.
Death of an owner – Has all the same features as a joint tenancy, but when a joint tenant dies, that joint tenant’s interest automatically passes to the survivor joint tenants without the need for probate. Thus, a joint tenant’s heirs will not inherit the joint tenant’s share of the real property unless the heirs are the other joint tenants.
No creditor protection – If the property is not homestead, then creditors of one owner can place a lien on that owner’s interest to satisfy debt. - Tenancy by the entirety – Tenancy by the entirety is the default way a married couple takes title to real estate in Florida. If you are taking title as “Bob and Jill, husband and wife” or “Bob and Jill, a married couple,” then you are automatically taking title as a tenancy by the entirety.
Ownership – Each spouse has 100% ownership in the property. Each spouse has the same ownership percentage and the same right to use and occupy the property regardless of how much money either spouse invested in the property.
Death of an owner – Has all the same features as a joint tenancy with right of survivorship. At the death of one spouse, the real property interest passes automatically to the other spouse without the need for probate.
Protection from creditors – If a spouse ends up with a lawsuit against them, the property held by entirety is protected. A property held in tenancy by the entirety cannot be claimed by creditors to satisfy one spouse’s judgment.