20. Ownership capacity

Ownership capacity refers to the legal framework through which individuals or entities hold property rights. In the context of property ownership, it determines how ownership is shared among multiple owners and the rights and obligations associated with each type of ownership. The main types of property ownership are joint tenants, tenants in common with equal shares or tenants in common with unequal shares. 

Joint tenants 

Joint tenancy is a form of property ownership where each co-owner holds an undivided interest in the entire property. In joint tenancy, all owners have an equal right to the property, and if one owner passes away, their share automatically passes to the surviving joint tenant(s) by the right of survivorship. 

How it works: Joint tenants have unity of possession, meaning they all have an equal right to possess and use the entire property. Additionally, joint tenancy requires unity of interest, unity of time (the ownership interest must be acquired at the same time), and unity of title (the owners must have the same deed or instrument of title). 

Tenants in common in equal shares 

Tenancy in common is a form of property ownership where each co-owner holds a distinct, divisible share of the property. Unlike joint tenancy, there is no right of survivorship in tenancy in common. Each tenant in common can freely sell, transfer, or mortgage their share of the property without the consent of the other co-owners. 

How it works: Tenants in common can hold equal or unequal shares of the property. Each co-owner has the right to possess and use the property in proportion to their share, but the shares do not have to be equal. If one tenant in common passes away, their share of the property becomes part of their estate and passes to their heirs or beneficiaries according to their will or the laws of intestacy. 

Tenants in common in unequal shares 

Similar to tenants in common in equal shares, tenants in common in unequal shares hold distinct, divisible shares of the property. However, unlike equal shares, the ownership interests are divided unequally among the co-owners. 

How it works: Tenants in common in unequal shares operate similarly to tenants in common in equal shares, but the co-owners' shares of the property are distributed unequally according to their agreement or the circumstances of ownership. Each co-owner has the same rights and obligations as in tenancy in common in equal shares, but the distribution of proceeds upon sale or disposition of the property may differ based on the unequal ownership shares.