Joint Tenancy
Definition and meaning of Joint Tenancy in real estate.
Joint tenancy is a form of co-ownership where two or more individuals own equal shares of a property with the right of survivorship.
In more detail
To establish this type of ownership, four unities must be met: time, title, interest, and possession. The owners must acquire the property at the same time, through the same deed, hold equal ownership percentages, and have equal rights to occupy the entire property. In many states, if one joint tenant sells their share to a third party, the joint tenancy is broken, and the ownership structure converts to a tenancy in common for that new owner.
This structure is common among married couples and family members who want to simplify property transfer upon death.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Key benefit | Bypasses the probate court process |
| Requirement | Equal shares and simultaneous acquisition |
| Watch out for | A single owner cannot pass their share to heirs through a will |
Two siblings purchase an investment property as joint tenants, each owning a fifty percent share. If one sibling passes away, the surviving sibling instantly becomes the sole owner of the property, bypassing the deceased sibling's estate and probate.
Frequently asked questions
What is the difference between joint tenancy and tenancy in common?
Joint tenancy includes the right of survivorship and requires equal ownership shares. Tenancy in common allows unequal shares and lets owners pass their share to heirs through a will.
Can one joint tenant sell their share without permission?
Yes, a joint tenant can sell their share to a third party. However, doing so breaks the joint tenancy, converting the ownership structure into a tenancy in common.