Types of Homeownership
Since most people understand this incorrectly, let me outline the different types of homeownership.
Keep in mind: A Condo is not referring to an apartment style owned home- it is a type of ownership!
The first 3 options listed below may be a choice you have with the person you are purchasing with.
There are several types of homeownership that people can choose from, depending on their financial situation, lifestyle, and personal preferences. Here are some of the most common types of homeownership:
Sole ownership: This is the most straightforward type of homeownership, where one person owns the property outright. This can be an individual, a couple, or even a business entity.
Joint tenancy: This type of homeownership involves two or more people owning the property together. If one of the owners passes away, their share of the property automatically goes to the remaining owner(s). This is typical for married couples!
Tenancy in common: This is similar to joint tenancy, but with one key difference: if one of the owners passes away, their share of the property goes to their heirs instead of the remaining owner(s).
Condominium ownership: In this type of homeownership, the owner owns a unit within a larger building or complex. They also share ownership of common areas like hallways, elevators, and outdoor spaces with the other unit owners.
Cooperative ownership: In a cooperative, the residents of a building own shares in a corporation that owns the entire building. Each resident has the right to occupy a unit within the building, but they don't own it outright.
Leasehold ownership: This type of homeownership involves leasing the land on which the property sits, rather than owning the land outright. The leasehold owner has the right to occupy and use the property for a set period of time, usually 99 years or more.
Each type of homeownership has its own advantages and disadvantages, and it's important to carefully consider your options before making a decision.
