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Joint Tenancy

Joint tenancy is a form of property ownership where 2 or more individuals, known as joint tenants, have an equal and undivided interest in the property. It can be a popular form of property ownership among couples, famly members, or business partners as it offers benefits like the avoidance of probate, seamless transfer of ownership, and simplified estate planning. In joint tenancy, each tenant holds an equal share of ownership and an equal right to occupy and use the entire property.

What You Need To Know

One of joint tenancy's defining characteristics is the right of survivorship. If one joint tenant dies, their share automatically transfers to the surviving joint tenants, without going through probate or being inherited by their heirs. The property remains with the surviving joint tenants until the last surviving tenant, who then becomes the sole owner.

For joint tenancy to be valid, certain requirements must be met. These include the joint tenants acquiring their interests in the property simultaneously, through the same title document, having an equal interest in the property, and having an equal right to possess and use the property.

Joint tenancy can be severed if one joint tenant decides to sell or transfer their interest to another party. This action converts the ownership from joint tenancy to tenancy in common, where each owner has a distinct and separate share of the property that can be inherited or sold independently.