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Joint Tenancy VS Tenancy in Common: The BEST Comparative Guide to Pass the Real Estate Exam
Dec 11, 2024
What is the difference between joint tenancy and tenancy in common? Here is your complete breakdown.
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🕒 Chapters:
0:00 Introduction
0:34 Ownership In Severalty vs. Concurrent Estate
1:10 What Is Tenancy In Common
2:50 What Is Joint Tenancy
4:22 Joint Tenancy vs. Tenancy in Common
7:04 Practice Exam Questions
9:44 Outro
7 Must-Know Acronyms: https://www.youtube.com/watch?v=xA7LjEpNsqQ
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0:00
imagine property ownership as a pie
0:02
joint tency and tency in common are two
0:05
different ways to slice this pie one
0:07
gives everyone an equal piece and the
0:10
other allows to have uneven slices but
0:13
which one is which and why does it
0:15
matter in the next few minutes we'll cut
0:18
through the confusion and serve you up
0:20
the knowledge that you need to Ace the
0:22
real estate exam no fluff no filler only
0:26
the essential info that you need to Ace
0:28
this part of the exam so get ready to
0:30
have your piece of the pie and
0:32
understand it too what are the two types
0:34
of real estate ownership when you walk
0:37
through those exam doors chances are you
0:39
will encounter two types of property
0:41
ownership ownership in severalty and
0:43
concurrent State the difference between
0:46
these two is simple ownership in
0:48
severalty means that the title holds the
0:50
name of one entity while concurrent
0:52
State happens when there are multiple
0:54
owners on one property joint tency and
0:57
tency in common are the two most most
1:00
prominent forms of concurrent ownership
1:02
not to mention the two that will
1:04
certainly make their appearance on the
1:06
exam what does each of these terms mean
1:09
what is tency in common tency in common
1:12
is a type of concurrent estate where two
1:14
or multiple people own a property
1:16
together with only one common
1:18
denominator the property everything else
1:20
is often not uniform for example in a
1:23
tency in common the multiple owners
1:25
might have unequal ownership shares one
1:29
person May own 25% while the other two
1:32
own
1:33
75% in a tency in common we will often
1:36
see flexible entry co-owners can acquire
1:40
their interest at different times and
1:42
through separate transactions variable
1:44
ownership shares interest may be equal
1:47
or unequal for instance one party might
1:50
hold a 60% stake while another holds 40%
1:55
full property access each owner has the
1:58
right to use and enjoy the entire higher
2:00
property regardless of their ownership
2:02
percentage independent transfer rights
2:05
co-owners can sell lease or Beque their
2:09
share without requiring consent from
2:12
other owners no automatic survivorship
2:15
upon an owner's death their interest
2:17
passes to their designated air as
2:20
specified in their will not to the
2:22
surviving co-owners what I want you to
2:25
remember for the exam is the tency in
2:28
common is when unrelated parties want to
2:31
own a property together for example
2:33
friends pulling resources to buy that
2:35
dream vacation home or business partners
2:38
buying commercial real estate property
2:41
it offers flexibility in terms of
2:43
ownership Division and the ability to
2:45
dispose one's share independently what
2:48
is joint tency joint tency on the other
2:51
hand is a form of property ownership
2:53
where two or multiple people own a
2:56
property in equal shares with a Twist
2:59
the right of survivorship imagine this
3:02
as the all for one or one for all of
3:05
real estate this is a common Choice
3:08
among married couples and close family
3:10
members so related people and here's
3:13
what makes joint tency so special equal
3:16
ownership AKA possession all joint
3:19
tenants own an equal slice of the
3:21
property pie Unity of time they all get
3:24
their slice at the same time Unity of
3:26
title from the same serving dish legal
3:29
document Unity of Interest everyone's
3:31
slies is identical in nature and
3:33
duration right of survivorship here's
3:36
the kicker if one owner passes away
3:39
their slice automatically goes to the
3:41
surviving owners no need for probate did
3:44
you notice a popular exam acronym hiding
3:47
in those five points if you have caught
3:50
our acronym video and I bet you have
3:52
already spotted the acronym ttip it's an
3:55
examiner's favorite do you guys remember
3:58
what ttip means
4:00
please leave a comment below and I tell
4:02
you if your answer is right or wrong and
4:05
if you have not seen our acronym video
4:07
yet then I will leave a link below for
4:10
you but one key rule about joint tency
4:12
is that by breaking any of these unities
4:14
you can turn a joint tency into a tency
4:17
in common faster than you can say
4:19
property rights what is the difference
4:22
between joint tency and tency in common
4:25
all right let's break down the
4:26
similarities and differences between
4:28
joint tency and tency in common this
4:31
comparison trips up many test takers
4:33
let's start with the only similarity
4:35
they have in both form of property
4:38
ownership both parties owners or tenants
4:42
have equal access to the property the
4:44
key differences on the other hand are
4:46
more lengthy ownership division joint
4:49
tency always equal married couple owns
4:52
50/50 of the property tency in common
4:56
can be unequal inheritance joint tency
4:59
has automatic right of survivorship
5:01
tenants in common does not selling
5:04
rights joint tenants need all owners
5:07
approval to sell tenants in common can
5:10
sell their share freely creation joint
5:13
tency must satisfy all four unities
5:17
tenance in common is more
5:19
flexible remember on exam day look for
5:23
phrases and keywords such as equal
5:25
shares and interest or the right of
5:27
survivorship for joint tency
5:30
um for tency in common uh watch for
5:33
phrases such as unequal ownership or the
5:35
ability to will property shares and
5:38
here's a simple real life example that
5:40
will help you remember these Concepts
5:43
and also clear up any confusion you may
5:45
have imagine two pizza shops on the same
5:48
street joint slice heaven and common
5:51
cross crew joint slice Heaven AKA joint
5:54
teny for friends Jack Tom Rachel and
5:58
Sara open this shop together together
6:00
they all signed the same lease on the
6:03
same day invested equal amounts and
6:05
share equal responsibilities their
6:08
slogan one for all and all for one slice
6:11
if Jack decides to leave he can't just
6:13
sell his part to anyone Tom Rachel and
6:16
Sara have first dips sadly if Rachel
6:20
passes away her share of the business
6:22
automatically goes to Jack Tom and Sara
6:25
Rachel's family doesn't get the size of
6:28
this pizza come and crry crew AKA teny
6:31
in common this shop is owned by three
6:34
people Chris Maria and Nick Chris bought
6:37
in first with 50% then Maria joined with
6:40
30% and finally Nick with 20 their
6:43
slogan different slices same great pizza
6:47
if Maria wants to sell her 30% she can
6:50
do so without asking Chris and Nick if
6:53
Nick unfortunately passes away his 20%
6:56
goes to whoever is in his will no not
6:59
automatically to Chris and
7:02
Maria exam
7:03
examples let's put this knowledge to the
7:06
task with a few questions mirroring
7:08
what's waiting for you on the exam
7:11
question number one Tony and Taylor are
7:13
two unmarried individuals who own
7:15
property with equal interest and the
7:17
right to survivorship which of the
7:19
following forms of ownership would Tony
7:21
and Taylor most likely have tenants by
7:25
entirety tenant in common community
7:27
property or joint tency the correct
7:30
answer is four remember community
7:33
property and tenant by the entirety is
7:35
through marriage you can't have that
7:37
form of ownership with two unmarried
7:39
individuals joint tency would be the
7:41
best answer tency in common
7:44
significantly differs from a joint tency
7:46
particularly in terms of survivorship
7:48
Rights and the degree of ownership each
7:51
tenant has unlike with a joint tenancy
7:53
tenants in common have no rights of
7:56
survivorship so knowing that Tony and
7:58
Taylor have a right right to
7:59
survivorship and are unmarried we can
8:02
assume they have a joint tency the
8:05
amount of Interest really doesn't matter
8:08
in this case question number two Maria
8:11
John and Lisa purchase a commercial
8:13
property together as tenants in common
8:15
Maria contributes 50% of the purchase
8:18
price while John and Lisa each 25 which
8:22
of the following statements is true if
8:24
Maria dies her 50% share automatically
8:27
goes to John and Lisa John can sell his
8:30
25% share without permission from Maria
8:33
and Lisa all three must agree to any
8:36
changes made to the property the
8:38
property must be divided into physical
8:40
portions based on ownership percentages
8:43
the correct answer is b in a tency in
8:46
common owners can sell their share
8:49
without needing permission from other
8:51
co-owners question number three Tom and
8:54
SAR a married couple purchase a vacation
8:57
home together the D stays the they own
8:59
the property as tenants in common each
9:02
with a 50% interest if Tom passes away
9:05
what happens to his share of the
9:07
property it automatically transferred to
9:10
Sara due to the right of survivorship it
9:13
goes to Tom's children from a previous
9:15
marriage as stated in his will it's
9:17
split equally between Sarah and Tom's
9:19
estate the property must be sold and
9:22
proceeds divided equally the correct
9:24
answer is B despite being a married
9:27
couple with equal shares which might
9:29
suggest join tency the key phrase as
9:32
tenants in common indicates that there
9:34
is no right of survivorship Tom's share
9:38
would go to whoever he designated in his
9:40
will in this case his children from a
9:43
previous marriage you have mastered the
9:45
differences between joint tency and
9:47
tency in common and just like that you
9:50
were one concept richer this will
9:52
definitely prove helpful in your real
9:53
estate exam please hit the like button
9:56
and subscribe for more real estate exam
9:58
tips got questions please drop them in
10:01
the comments below and keep pushing
10:03
forward your real estate career is just
10:05
around the corner until next time happy
10:08
studying
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