A Buyer’s Guide to Choosing Tenancy in Michigan
When you purchase a property in Michigan, your name (or names) will be written on the deed. The way your name appears on that deed affects your ownership rights and responsibilities. This is called tenancy—and it determines what happens to your interest in the property if you sell, transfer, or pass away.
At Legacy Title Agency, we believe informed buyers make smoother closings. Here’s a simple breakdown of the common tenancy options available in Michigan.
What is Tenancy?
Tenancy defines the legal relationship, rights, and obligations between parties who share an interest in property. Choosing the right form of tenancy is important, because it impacts inheritance, liability, and how ownership is transferred.
Tenants in Common
Example on a deed: Bob Jones to John Smith and Sally Smith
Two or more people or entities can own property together. Ownership shares may be equal or unequal.
If one owner passes away, their share goes to their estate and generally must go through probate (it does not automatically transfer to the co-owner).
This is the default tenancy in Michigan, unless the deed specifies otherwise or describes the owners as married.
Best for: Unrelated co-owners, investors, or business partners who want ownership to remain flexible.
Joint Tenancy with Rights of Survivorship (JTWROS)
Example on a deed: Bob Jones to John Smith and Sally Smith as joint tenants with full rights of survivorship
Two or more people (must be individuals, not entities) own property equally.
If one owner passes away, their share automatically transfers to the surviving owner(s).
This type of tenancy cannot be unilaterally terminated. If one tenant conveys their interest, it creates a life estate for that conveying tenant.
Best for: Married couples, partners, or co-owners who want property to transfer automatically without probate.
Joint Tenants
Example on a deed: Bob Jones to John Smith and Sally Smith as joint tenants
All owners have equal ownership.
If one passes away, their share automatically goes to the surviving owner(s).
If one joint tenant conveys their interest, the new co-tenant holds as a tenant in common and does not receive survivorship rights.
Best for: Co-owners seeking automatic survivorship but who want more flexibility than JTWROS.
Tenancy by the Entirety (Married Couples Only)
Example on a deed: Bob Jones to John Smith and Sally Smith, husband and wife
Available only to legally married couples at the time of purchase.
Neither spouse can sell or convey their share individually.
Provides survivorship rights and additional creditor protection.
This is the default tenancy in Michigan when a deed describes the owners as married.
Best for: Married couples looking for maximum protection and automatic survivorship.
Next Steps
Before your closing, let us know how you would like to hold title so that we can prepare your documents correctly.
Important Note: The way you hold title can affect inheritance, taxes, ownership rights, and liability. This information is provided for educational purposes only. Legacy Title Agency, LLC is not a law firm and cannot provide legal advice. We recommend consulting with an attorney and/or financial advisor before making your decision.
Legacy Title Agency, LLC
📍 Clarkston, Michigan
🌐 www.legacyclosings.com
📞 (248) 913-2266