Three forms of concurrent ownership?
What is Tenancy by the Entirety
a protected marital interest bwteen spouses with the right of survivorship
What is Joint Tenancy
two or more own with the RIGHT OF SURVIVORSHIP
It is not devisable or descendible, , because it passes to the other joint tenant (right of survivorship), can’t dispose of property by will, it becomes void
It is transferable (alienable inter vivos)
What is Tenancy in Common
two or more own WITHOUT the right of survivorship
co-tenant owns individual part + right to possess whole
devisable, descendible, alienable
What does devisable and descendible mean?
Devisable: passing by will
Descendible: passing to heir
How do you create a joint tenancy?
T-TIP
T: at the same time
T: by the same title (meaning in the same deed, will, or other document of title)
I: identical, equal interests, AND
P: right to possess the whole
HAVE to clearly express right of survivorship or its a TIC (to A & B as JT with the right of survivorship)
*JT have to be equal. Everyone has equal shares and can use the whole. (e.g. if theres three, each get equal 1/3 share
How are shares in a tenancy in common split up?
Equal shares are presumed but not required, the shares may be split in anyway
Phoebe, Ross, and Monica are joint tenants. Phoebe sells her interest to Chandler, whats the result?
What about if Ross dies and leaves his share to Rachel? What happens?
Chandler is a tenant in common
Ross can’t leave his share to his heir, Monica gets his share because of the right of survivorship
Monica and Chandler become TIC
Liens in a joint tenancy
If a JT has an execution/lien of a mortgage on her share won’t sever the tenancy in the vast majority of states.
Majority (lien theory): no severance
Minority (title theory): severance
What happens if one JT murders another?
when a beneficiary unlawfully and intentionally kills a JT, any joint property is transformed into a tenancy in common
How is a tenancy by the entirety created?
Only some states recognize it. It arises presumptively in any conveyance to married partners who become one entity with the right of survivorship.
Creditors of only one spouse can’t touch this tenancy for satisfaction of the debt
Can one person transfer their share in a tenancy by the entirety?
No unilateral transfer or encumbrance.
What happens in a divorce, death, or execution of a lien in a tenancy by the entirety
Divorce & Death: will sever it and it becomes a tenancy in common
Execution of lien by BOTH spouses: will sever it.
When a co-tenant rents?
One co-tenant is not liable to the other for rent
BUT
if they lease their part or all the premises to a third party, they must provide their co-tenants with their fair share of the rental income (depending on what share they own)
Ouster
actionable wrong
when one co-tenant wrongfully excludes another co-tenant from possession of the whole or any part
Can a co-tenant adversely possess another co-tenant’s share
No unless ouster is present
Repairs, carrying costs, and unilateral improvements for co-tenants
Carrying costs (taxes, mortgage, interest payments): pays their fair share
Repairs: contributions for reasonable, necessary repairs with notice
UNLESS there is unilateral improvements, then no contribution is required but gets a credit at partition or a debit if they caused any decrease in value
Co-tenancy and Partition
Co-tenants have the right to bring an action for partition.
Three types:
voluntary agreement
partition in kind (court ordered)
forced sale
but restraints on partition are valid, provided they are limited to a reasonable time
Waste in co-tenancy
Must not commit waste. co-tenants can bring action against other co-tenants for waste during the life of the co-tenancy
which forms of waste exists if co-tenant Randall unilaterally converted part of the cabin into a chemistry lab, eliminating the premises’ game room in the process?
Voluntary or Ameliorative
Survivorship when there is three or more joint tenants
If one joint tenant conveys to someone else, only their interest is destroyed. the remaining joint tenants continue to hold joint tenancy as between themselves.
Leaseholds or nonfreehold estates
a leasehold is an estate in land, under which the tenant has a present possessory interest in the leased premises and the landlord has a future interest (reversion)
Tenancy for years
Leasehold
-known, fixed period of time
-termination automatic (on end date, needs an end date)
-no notice needed to terminate
-writing typically needed if more than 1 year
Terminating a tenancy for years
Right of Entry: landlord reserves a right of entry-which allows them to terminate the lease if the tenant breaches any of the leases covenants
Landlords Acceptance of Tenants Surrender: if unexpired term exceeds one year, surrender must be in writing