Joint tenancy and tenancy in common are two types of co-ownership of real estate. Joint tenancy includes the right of survivorship, meaning that when one tenant dies, their interest is divided among the remaining tenants. Tenancy in common does not include the right of survivorship. All parties in a joint lease must have identical interests and intentions to maintain a survival right. In the event of dissolution, the joint tenancy is dissolved if there are only two interest holders, but if there are more, the remaining original housemates will remain so.
There are several terms for co-owners of real estate, each with its own legal meaning. Two such designations that often create confusion regarding the rights and responsibilities of co-owners are those who hold real estate as joint tenants and those who hold real estate as part of a joint tenancy. There are several key differences between joint tenancy and joint tenancy, but the main distinction can be drawn in the right of survival granted to the parties to a joint tenancy. This means that when a tenant dies, his survivors may not be able to take over the property in his interest. Rather, his interest is divided among the remaining joint tenants.
Shared tenants have no right to survival. Upon the death of one of the joint tenants, his interest in the property may be conceived in favor of one of his heirs through a will or inheritance of his estate. The respective joint tenants’ interest in the property is transferable without restriction, notwithstanding any restrictions agreed by the parties in a separate agreement.
Creating a joint lease has four elements: time, title, interest, and possession. To create a joint lease, all parties must have identical interests, at the same time, from the same transaction, and with the same right to reside on the property. Thus, each housemate has the exact same share in the piece of property. Joint tenants may own their property along with disproportionate respective interests and have no adverse effect on the arrangement. In addition, parties seeking to enter into a joint lease must clearly state their intention to maintain a survival right between the parties or a joint lease will be presumed.
In the event of a dissolution of a joint lease agreement, the resulting agreement is one of the joint tenants. The most common way of separating a joint lease is through the transfer of one party’s interests in the joint lease to another party. This causes the new landlord to take an interest in a joint tenant. If there is only one other joint tenant, the joint tenancy is fully dissolved and the two landlords will be joint tenants. However, if there are more than two interest holders in the joint lease, the remaining original housemates will remain so and only the new owner will retain their interest as a joint tenant.
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