What is Joint Tenancy?
The term “joint tenancy” refers to a legal arrangement where two or more individuals own a property together, each with equal rights and obligations. Various groups—including married and non-married couples, friends, relatives, and business partners—can create joint tenancies.
A unique feature of joint tenancy is the creation of a right of survivorship. This means that if one owner dies, their interest in the property automatically transfers to the surviving party or parties, bypassing the probate process.
Key Takeaways
- Joint tenancy involves equal share and interest in property ownership.
- Owners share both financial obligations and benefits equally.
- Right of survivorship ensures that a deceased owner’s share automatically passes to the surviving tenant(s).
- Unlike tenancy in common, joint tenancy does not allow a deceased owner’s share to be passed on to heirs.
- Joint tenancies can be terminated unilaterally by one tenant.
Related Terms: tenancy in common, deed, probate, will, beneficiary, right of survivorship.
References
- Quicken Loans. “Joint Tenants With Right Of Survivorship: What Are They?”
- NOLO. “Avoiding Probate With Joint Ownership”.
- NOLO. “Joint Property and Concurrent Ownership”.
Get ready to put your knowledge to the test with this intriguing quiz!
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## What is Joint Tenancy?
- [ ] An individual ownership of property
- [x] A form of co-ownership where each party has an equal share and right to the property
- [ ] A loan agreement between two or more individuals
- [ ] A legal form taking upon a sole proprietor
## One key feature of Joint Tenancy is?
- [ ] Owners have different ownership interests
- [x] Right of survivorship
- [ ] It can only exist between family members
- [ ] Requires a complex trust arrangement
## What happens to the property when one joint tenant dies?
- [ ] It is divided among the deceased tenant's heirs
- [ ] It is sold and proceeds are distributed
- [x] It automatically passes to the surviving joint tenants
- [ ] It must go through probate
## Which of the following is not a characteristic of Joint Tenancy?
- [ ] Unity of time
- [ ] Unity of possession
- [ ] Unity of interest
- [x] Partial inheritance right distribution
## How can Joint Tenancy be terminated?
- [ ] Through a written declaration without action
- [x] Through sale or transfer of an interest, mutual agreement, or a partition action
- [ ] Joint tenants must all pass away to terminate
- [ ] It cannot be terminated once established
## Which term refers to the automatic passing of property to the surviving owners without going through probate?
- [ ] Probate Succession
- [ ] Inherited Entitlement
- [x] Right of Survivorship
- [ ] Estate Succession
## Joint Tenancy affects:
- [ ] Real estate property only
- [ ] Bank accounts only
- [ ] Business equity shares
- [x] Various types of property such as real estate, bank accounts, and investments
## Which type of co-ownership allows owners to leave their share to someone else in their will, unlike Joint Tenancy?
- [ ] Probate Tenancy
- [x] Tenancy in Common
- [ ] Inheritance Chamber
- [ ] Partnered Tenure
## Which type of conveyance will mostly convert a Joint Tenancy into a Tenancy in Common?
- [ ] Adding another Joint Tenant
- [ ] Placing the joint property in a will
- [x] Selling or transferring one tenant's interest
- [ ] Renouncing the Right of Survivorship
## Why might someone choose Joint Tenancy over Tenancy in Common?
- [ ] Lesser legal ramifications in property transfer
- [x] The avoidance of probate and the Right of Survivorship
- [ ] Automatic income generation
- [ ] Individual control over owned share for future sale
