What is Joint Tenancy?

Joint tenancy with rights of survivorship is a form of property ownership where two or more people own equal shares of a property, including the right of survivorship. This means that when one joint tenant dies, their share automatically transfers to the surviving joint tenant(s) without going through probate. To create a joint tenancy, all owners must acquire their shares at the same time, through the same deed, and under the same conditions.

For example, three siblings, Anna, Ben, and Carla, purchase a property together as joint tenants with rights of survivorship. Each owns an equal 33.33% share. If Anna passes away, her share automatically transfers to Ben and Carla.

Pros:

• Avoids probate, ensuring a smooth transfer of ownership upon death.

• Equal ownership simplifies decision-making for property use.

• Ideal for family members or close friends with shared interests.

Cons:

• If one tenant sells their share, the joint tenancy may be converted to tenants in common.

• Creditors of one joint tenant can place liens on the property.

• All joint tenants must agree to sell or encumber the property, limiting flexibility.

Joint tenancy rights of survivorship offer a straightforward way to share property ownership with the added benefit of avoiding probate. It’s ideal for close relationships but requires careful planning to prevent complications.