Common Types of Property Ownership in Grenada

Tuesday, March 12, 2024 | By Terra Grenada

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In Grenada, property ownership is governed by legislation that is influenced by British common law system and other local regulations.

Understanding the various types of property ownership prevalent in Grenada is important for both current and prospective property owners. Today we'll delve into the common types of property ownership, the responsibility of owners, and laws to adhere to, in the event of a property sale.

The most common forms of property ownership that we encounter on a day-to-day basis are freehold, Joint Tenancy and Tenancy in common.

1.Freehold Ownership / Fee simple

Freehold ownership is the most common and preferred form of property ownership in Grenada. When you own a property freehold, you have full ownership rights over the land and any structures on it indefinitely. This means you can use, modify, or sell the property as you see fit, once you are in adherence to the respective zoning regulations.

2. Joint Tenancy

Joint tenancy is a form of property ownership where two or more individuals hold equal shares in a property. If one owner passes away, their share automatically transfers to the surviving joint tenant(s) rather than to their heirs. Joint tenancy is common for spouses and family members in Grenada.

Rights and Responsibilities of Joint Tenants:

Right of Survivorship: This means that upon the death of one joint tenant, the surviving tenant(s) will own the entire property outright.

Equal Ownership: Joint tenants typically have equal shares in the property.

Joint Management: Joint tenants have equal rights to manage and use the property. This includes making decisions about maintenance, repairs, renovations, and other matters related to the property.

Financial Responsibilities: Joint tenants are jointly responsible for any financial obligations associated with the property, such as property taxes, mortgage payments, insurance premiums, and maintenance costs.

No Partition: Joint tenants cannot sell or transfer their share of the property without the consent of the other joint tenants.

3.Tenancy in Common

Tenancy in common is similar to joint tenancy, but each owner holds a distinct, proportionate share of the property. Unlike joint tenancy, there is no right of survivorship in tenancy in common, meaning each owner can pass on their share of the property to their heirs. This form of ownership is common among business partners and individuals purchasing property together.

Rights and Responsibilities of Tenants in Common:

No Right of Survivorship: Tenants in common do not have a right of survivorship. If one tenant in common passes away, their share of the property becomes part of their estate and is distributed according to their will or intestate succession laws.

Individual Ownership: Unlike joint tenancy, tenants in common hold distinct, proportionate shares in the property.

Individual Management: Each tenant in common has the right to manage and use their share of the property independently.

Financial Responsibilities: Tenants in common are individually responsible for their share of the property-related expenses.

Partition: Tenants in common have the right to seek a partition of the property. This means that if co-owners cannot agree on the use or management of the property, any tenant in common can petition the court to divide the property or force a sale.

When it's finally time to sell a property in Grenada, all owners must follow legal procedures outlined by the government and adhere to any specific requirements related to their type of ownership.

This would involve:

Securing the services of a licensed real estate agent or attorney to facilitate the sale.
Obtaining any necessary clearances or approvals from local authorities.
Ensuring all financial obligations, such as property taxes and utility bills, are settled.
Executing a legally binding sales agreement outlining the terms and conditions of the sale.
Completing the transfer of title deeds and other relevant documents to the buyer upon completion of the sale.