Real Property Ownership in Pennsylvania

Under Pennsylvania law, persons seeking to acquire and own real estate may elect to take ownership in several different forms, each with its own set of characteristics. Ownership form is particularly important where people elect to co-own real estate, whether with family members, friends or, in the business context, partners and investors.  It is critical to analyze how to correctly arrange real estate ownership to avoid the negative effects and unwelcome results.

Pennsylvania law allows for various types of joint real estate ownership, each with advantages and disadvantages.  In the following sections, we will cover the various types of property ownership in Pennsylvania and the factors to consider while making your decision.

Joint Tenancy

Joint Tenancy is a type of property ownership in which two or more people jointly own the property right and have equal rights to participation and enjoyment of the property, with the condition that upon the death of one joint tenant, his share of the property passes, automatically, to the surviving tenants. Full legal title to the property passes to the last surviving owner.

It is important to emphasize that the two or more persons who share ownership have equal interests in the property and that a legal judgment against any one of the joint tenants establishes a lien on the entire property.

Tenancy in Common

Instead of having equal shares, this form of ownership allows the parties to split the property by whichever division they wish and agree on. The property does not pass to other owners by law in this instance, and their percentage can go to the heirs at the current market value and through specific traditional forms.

In this situation, two or more people's interests are entirely separate, different, and independent of one another.

Tenancy by the Entireties

This form of ownership is available only to married persons and, from a legal perspective, each spouse owns an indivisible one-half share of the real property.  If either party dies, complete ownership automatically belongs to the survivor. Neither spouse can express a desire to end the joint tenancy. 

It is crucial to note that if a judgment is entered against one spouse and the spouse who is not the defendant dies or the spouse divorce, the judgment becomes a lien on the real estate.

Make the right choice

Take your time and pay close attention while deciding on a type of real property ownership. This type of decision can significantly impact your future and the future of your heirs.

‘’Deciding on the form of ownership in real property which is most appropriate in your situation is critically important because the choice will affect future events and, in many instances, cannot be undone without significant expense and full cooperation of all parties involved.’’. - John