Concurrent estate is a legal term that refers to property that more than one individual owns at a time. When more than one individual owns real property, they are co-owners or concurrent owners.
There are three fundamental types of concurrent estates: joint tenancy, tenancy in common, and tenancy by the entirety.
Joint tenancy is the holding of real property jointly by two or more individuals. It can only ensue if all the parties receive equal property shares with the same deed and obtain it simultaneously.
The share automatically passes when either party dies to the other remaining co-owners. It can be broken if one of the co-owners transfers or sells their interest, in which case it reverts to a tenancy in common.
In a joint tenancy, two or more individuals own undivided property shares of real estate. Along with tenancy in common, joint tenancy is one of the most common types of joint possession of real property. Joint possession means that more than one individual holds interests in the title to the land.
Yet, joint tenancy is much different from a tenancy in common. The primary difference is that joint tenants may claim the “right of survivorship,” while tenants in common may not. The right of survivorship means that if one joint tenant becomes deceased, their share of the property interest will pass to the surviving joint tenants. In many jurisdictions, the joint tenants must specifically claim the right of survivorship.
To form a joint tenancy, the tenants must show that four conditions (the “four unities”) have been met:
If any of these requirements are not met, most jurisdictions will assume that a tenancy in common exists rather than a joint tenancy. For instance, suppose the tenants all obtained their interests at different times. In that case, the “unity of time” requirement is lacking- thus, the form of title to real estate will likely be a tenancy in common.
There are many different joint tenancy pros and cons. Most tenants will enter into a joint tenancy arrangement to take advantage of these distinguishing characteristics:
On the other hand, joint tenancy can carry an increased number of tenants’ duties and obligations. For instance, all joint tenants are accountable for contributing funds for routine repairs.
Any of the joint tenants may terminate a joint tenancy if any of the “four unities” listed above are disrupted. Terminating a joint tenancy before the death of one of the tenants is known as “severance” and usually results in a tenancy in common between the remaining tenants.
For instance, if a joint tenant conveys their interest to a third party through sale, then the unity of title no longer exists between the joint tenants. The joint tenancy agreement would effectively be terminated, and rather, a tenancy in common would be created with the third party.
Therefore, a party to a joint tenancy should consider carefully before transferring or selling their property interest. Doing so could terminate the joint tenancy, and the party would lose all their privileges and rights as a joint tenant.
Tenancy in Common is a shared tenancy in which each holder has an individually transferable interest in real property. Tenants in common may have different ownership interests (ex: One party holds 20%, another owns 25%, and a third owns 55%).
This concurrent estate does not permit the right of survivorship.
Tenancy by the Entirety is the third type of concurrent estate held by a husband and wife. When one spouse passes, the surviving spouse directly and automatically becomes the sole owner of the property.
This is known as the right of survivorship. It’s essential to mention that not all states recognize tenancy by the entirety.
A tenancy by the entirety is a form of joint possession of real property. Tenancy by the entirety is joint ownership of property by a husband and wife who are treated as a single entity. Both husband and wife can possess and use all of the property. If one spouse passes, the other inherits the whole property. Neither husband nor wife can sell any part of the property without consent.
The creation of a tenancy by the entirety is much like creating a joint tenancy plus marriage.
To form a tenancy by the entirety, five requirements must be met:
If any of these conditions is missing, most courts will assume that the more favored tenancy in common is formed.
About half of the states recognize tenancy by the entirety. The modern trend among states is to abolish tenancy by the entirety. Many states no longer prefer it because often creditors of one spouse cannot levy against property held in tenancy by the entirety.
Concurrent estate holders generally have the following rights:
Concurrent property owners assume several responsibilities. For example, you are responsible for paying your percentage of taxes, mortgage payments, maintenance, repairs, and anything else needed by the state.
As in any instance where you own property with another person, concurrent estates have their proper share of disputes among property owners.
Below are some common disputes:
Many concurrent estate disputes can be bypassed if the parties have a written agreement regarding the property.
Hiring a property lawyer is to your advantage if you are involved in a dispute over a concurrent estate. This is especially true if you or one of the co-owners must file a lawsuit.
A knowledgeable lawyer can help represent you in court and help defend your property interests according to the laws of your state.
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