Key takeaways:
- A joint tenancy is a legal arrangement between two or more individuals who own property together.
- A joint tenancy is only valid when the four unities are present: Unity of Title, Time, Interest, and Possession.
- Selling shares in a joint tenancy can sever the joint tenancy and convert it into a tenancy in common.
Buying a home is a significant life event, and for many, it’s a journey taken with another person. While there are several ways to hold property jointly, one common method is joint tenancy. Understanding what a joint tenancy is and how it functions is crucial for anyone considering co-ownership, especially due to its distinct implications for ownership rights and inheritance.
This Redfin Real Estate article will explore the ins and outs of joint tenancy, helping you determine if it’s the right choice for your co-ownership aspirations. Now, let’s get started.
What is a joint tenancy, and how do they work?
A joint tenancy is a legal arrangement where two or more individuals own property together, with each owner having an equal and undivided interest in the entire property. The defining characteristic of a joint tenancy is the “right of survivorship.” This means that upon the death of one joint tenant, their share of the property automatically passes to the surviving joint tenant(s), bypassing the probate process and any provisions in a will.
What makes a joint tenancy valid?
For a joint tenancy to be validly formed, four unities must be present:
- Unity of Title: All joint tenants must acquire their interest through the same deed or instrument.
- Unity of Time: All joint tenants must acquire their interest at the same time.
- Unity of Interest: All joint tenants must have an equal share and an identical interest in the property. For example, if there are two joint tenants, each owns 50%.
- Unity of Possession: All joint tenants have an equal right to possess and use the entire property.
If any of these unities are…