8.1.2 Concurrent Ownership

Joint Tenancy

Two or more people own an [..1..] interest in a piece of land. And there’s a right of [..2..]

1. Undivided

2. Survivorship

Joint Tenancy

The right of survivorship means the instant a joint tenant dies, his interest is immediately and equally divided among […]

the surviving joint tenants

Joint Tenancy

How will you know on the exam is there is a joint tenancy?

They’ll tell you

Joint Tenancy

(Y/N): If A and B co-own GA as co-tenants, can either A or B convey their interest to a third person?

Y

Joint Tenancy

What happens if a co-tenant conveys their interest to a third person? (2)

1. It severs the joint tenancy into a tenancy in common

2. The right of survivorship is lost. Each owner’s share passes according to their will or estate laws, not automatically to the survivors

Joint Tenancy

If A & B co-own GA as co-tenants and B conveys his interest to C, what is the resulting ownership of GA?

A & C own GA as tenants in common (not as co-tenants)

Joint Tenancy

(Y/N): Can a will sever a joint tenancy?

N

Joint Tenancy

A will can’t sever a joint tenancy because a will only takes effect upon death, at which point the right of survivorship has already operated, meaning: the instant the joint tenant died, his interest was immediately and equally divided among […]

the surviving joint tenants

Joint Tenancy Hypos

The exam will have to tell you if a joint tenancy exists. Then, the ways they will test you are either:

1. One or more of the joint tenants [..1..]

2. One or more of the joint tenants [..2..]

3. There’s a situation involving a [..3..]

1. dies (right of survivorship triggers)

2. conveys (severance into tenancy in common)

3. will (which means nothing because a will does not convey an interest in a joint tenancy)

10-Person Joint Tenancy

• 10 co-tenants (A, B, C, D, E, F, G, H, I, and J) own Green Acre as joint tenants.

• Tenant A conveys a 5% interest in the whole to a new person, X.

• Tenant B conveys a 5% interest in the whole to a new person, Y.

What is the new ownership structure?

Joint Tenancy

(Y/N): If a joint tenancy is severed and becomes a tenancy in common, can it ever revert to a joint tenancy?

N

Tenancy in Common

Exists when two or more people own an [..1..] interest in property, but there is no [..2..]

undivided

right of survivorship.

Tenancy in Common

What does it mean for two or more parties to co-own property, each holding an undivided interest?

Co-owners may have unequal shares—e.g., one owns 60%, another 40%—but all co-owners have equal rights to use, occupy, or enjoy the whole property, regardless of their ownership percentage.

Tenancy in Common

What is the defining feature of a tenancy in common?

No right of survivorship

• When a co-owner dies, their share does not automatically transfer to surviving co-owners

• Instead, it passes to their estate, where it is distributed to heirs or beneficiaries via a will, trust, or probate

Tenancy in Common

A and B purchase a vacation cabin together as tenants in common. A has a son named AA. B has a daughter named BB.

If A dies, who owns the cabin?

B and AA as tenants in common

Tenancy by the Entirety

Definition: A special form of joint ownership available only to a […]

legally married couple

Tenancy by the Entirety

(Y/N): Does it include the right of survivorship?

Y

Tenancy by the Entirety

What is the effect of the right of survivorship?

Automatic and seamless transfer of property to the surviving spouse

Tenancy by the Entirety

What are the methods of severance?

• Divorce

• Mutual Agreement

Tenancy by the Entirety

What happens upon severance by divorce or mutual agreement?

Conversion to tenancy in common

Tenancy by the Entirety

What happens when a spouse dies?

Surviving spouse becomes the sole owner of GA with ownership in fee simple absolute

Tenancy by the Entirety

Can a tenant unilaterally convey their interest?

No

Personal Debt and JT or TIC

If you, as a tenant, run up a personal debt (like a credit card bill), this is your own liability and generally does not affect any […]

co-tenant

Personal Debt and JT or TIC

If you die, can your personal creditors (like Amex) automatically make your co-tenant pay your personal debts?

No

Jointly Mortgaging the Property

• If you and your co-tenant jointly take out a mortgage (i.e., both sign the loan agreement), you are both [..1..] for the mortgage payments.

• If one of you defaults, the lender can pursue [..2..] for the full amount owed, not just your share.

• If either or you die. the surviving co-tenant(s) are [..3..], and the lender can require full payment or foreclosure if payments are not made

1. equally responsible

2. both of you

3. still responsible for the mortgage

As joint tenants or tenants in common, each co-owner has the right to use and enjoy the […] property, not just a specific portion.

entire

Transferring or Giving Away Your Interest:

• Joint tenancy: A co-owner can unilaterally convey his interest, but once he does, the joint tenancy becomes a [..1..]

• Tenancy in common: Can a co-owner unilaterally convey his share? [..3..]

• Tenancy by the entirety: Can a spouse unilaterally convey his/her interest? [..4..]

1. tenancy in common

2. Yes, a co-owner CAN convey their share without the other co-owner’s consent.

3. No

Definition of Partition

Partition is the legal process by which co-owners (joint tenants or tenants in common) can end their shared ownership by [..1..] or [..2..] the property if they cannot agree on its use or disposition.

1. dividing

2. selling

Partition

Who can seek it?

Each co-tenant (joint tenants or tenants in common)

Partition

When will it not be granted?

When it’s not practical (facts will tell you)

Types of Partition (Describe What Happens)

• Partition in Kind:

• Partition by Sale:

• Partition by Appraisal:

• Partition in Kind: The property is physically divided.

• Partition by Sale: The property is sold, and the proceeds are divided among the owners.

• Partition by Appraisal: One co-owner buys out the others at a fair price.

In a Partition by Sale, the property owned by multiple co-owners is sold as a single unit, and the money received from the sale is distributed among the co-owners according to their […]

ownership shares

Mortgage and Taxes

If you and I are co-tenants—whether joint tenants or tenants in common—and one of us pays the mortgage or property taxes, that person can seek […] from the other co-tenant for their fair share of those expenses.

contribution

Mortgage and Taxes

Exception (Rarely Tested): A co-tenant in sole physical possession of GA can only recover through contribution the amount he paid that is more than the […] of his use of the property.

market value

Co-Tenant Rents and Profits

• Both Out-of-Possession: Co-tenants are entitled to share in rents and profits collected by another co-tenant from third parties leasing the property

• Co-Tenant in Possession: If a co-tenant lives on the property, the other co-tenant can’t demand rent UNLESS:

  • The possessing co-tenant [..1..] the other co-tenants (denies access) OR

  • The possessing co-tenant [..2..] (damages the land).

• ousts

• commits waste

If you see a fact pattern involving rent, ask yourself, "…”

“Are both off the land or is one on the physical property?"

Repairs

• Generally, a co-tenant who makes repairs cannot compel contribution from other co-tenants.

• Exception: Contribution may be compelled for […] if the repairing co-tenant requested help from the others AND they refused. (The necessity will be stated in facts).

necessary repairs

Improvements

• Generally, a co-tenant who makes improvements cannot compel contribution.

• Exception: The improving co-tenant may receive credit for the value added by the improvements—or bear the loss if value decreases—at the time of […]. They may also be able to recover if improvements increased rental value or profits.

partition or sale