Recently, there has been an increase in consultations from siblings or couples who are not yet married wanting to buy a house together. With home prices and interest burdens still high, it's understandable that many find it difficult to manage a down payment alone.

However, when they actually sit at the closing table, most people overlook one crucial line. It's about how to list both names on the deed.

The two main forms of co-ownership are joint tenancy and TIC. Although the names sound similar, the outcomes are completely different when one person passes away.

First, let's discuss joint tenancy. The formal name is Joint Tenancy with Right of Survivorship, abbreviated as JTWROS.

In simple terms, it means "the surviving owner gets everything." If one co-owner dies, their share automatically passes to the remaining owner, regardless of what's in the will.

This is considered a major advantage because it avoids the probate process.

On the other hand, TIC, or Tenancy in Common, is structured so that each person has their own share. The shares don't have to be equal, so they can be divided 60/40 or 70/30.

In TIC, if one person dies, their share goes to their heirs, not the remaining co-owners. The person named in the will, or if there's no will, the legal heirs will receive it.

When comparing the two, it can be summarized like this: joint tenancy has equal shares that pass to the survivor, while TIC allows for flexible shares that go to the heirs.

There's a specific trap in Delaware. State law 25 Del. C. § 701 requires that the deed explicitly states it is joint tenancy and not TIC for it to be recognized as joint tenancy.

If the wording is ambiguous, the law will presume it to be TIC. This is why some people end up in trouble believing that just listing both names means it will automatically transfer to each other.

Therefore, it's advisable to check the deed wording directly. The key is whether it includes a phrase like "as joint tenants with right of survivorship and not as tenants in common."

If you are a couple, there's another option. Delaware recognizes Tenancy by the Entirety, which is a form of joint ownership specifically for married couples.

If the deed is transferred to a couple without specifying the form, it is presumed to be this type. The share passes to the surviving spouse, similar to joint tenancy.

The difference lies in creditor protection. It is very difficult for a creditor to take the house due to debts incurred by only one spouse.

Thus, couples generally have fewer concerns, and the real decisions need to be made by combinations like siblings, friends, unmarried couples, or parents and adult children.

Joint tenancy also has its weaknesses. If one person transfers their share to someone else, the joint tenancy is broken and it becomes TIC.

Additionally, the fact that everything goes to the survivor can be a double-edged sword. In a blended family, the house could end up with the other spouse's family instead of your own children.

The weaknesses of TIC become apparent when disagreements arise. If co-owners cannot reach an agreement, anyone can file a partition lawsuit.

In Delaware, the Court of Chancery handles these cases, and if the property cannot be physically divided, it is often concluded that it should be sold and the proceeds divided.

Therefore, if you choose TIC, it's wise to draft a co-ownership agreement. This should outline who paid what, and who has the right to buy out the other if one wants to leave.

I'll briefly touch on taxes. New Castle County has a transfer tax of 4%, which includes a state rate of 2.5% and a county rate of 1.5%, making it the highest among Delaware's three counties.

When you later want to change the title, transfers between spouses are exempt from this transfer tax, but the situation may differ for siblings or friends. This is why careful consideration is necessary from the start.

Adjustments to the basis after inheritance, commonly referred to as a step-up, also vary depending on the ownership type and relationship. This can significantly impact the numbers involved.

From my experience, if you are both contributing equally and want to be the final heirs, joint tenancy is straightforward.

On the other hand, if the contributions differ or you want to pass on your shares to your respective children, TIC is the better choice. Personally, I would opt for TIC with a contract for unmarried co-purchases.

However, conclusions may vary based on individual circumstances, so it's essential to consult a real estate attorney or tax professional before closing. Delaware requires an attorney to be present at closing, providing an opportunity to ask questions.

This article is based on Delaware statutes and transfer tax information as of October 2026. Remember that a single line on the deed can determine the fate of your family decades later.