Joint tenancy is a form of property ownership in Arizona where two or more people hold equal shares of a property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenant or tenants, bypassing probate.
Key characteristics of joint tenancy
- Equal ownership. All joint tenants have equal shares in the property, regardless of individual contributions.
- Right of survivorship. The deceased tenant’s share automatically transfers to the surviving tenant or tenants.
- The four unities. A joint tenancy requires unity of time (interests acquired simultaneously), unity of title (acquired through the same deed or will), unity of interest (each tenant holds an equal share), and unity of possession (equal rights to possess and use the whole property).
Creating a joint tenancy in Arizona
To establish a joint tenancy, the deed must clearly state the intention to create one, typically using language like “as joint tenants with right of survivorship.”
Severing a joint tenancy
A joint tenancy can be terminated if any of the four unities is disrupted. For example, if one joint tenant transfers their interest to another party, the joint tenancy converts to a tenancy in common and the right of survivorship is lost.
Advantages
- Avoids probate. The automatic transfer of ownership at death simplifies the process.
- Simplicity. Establishing a joint tenancy is straightforward and is common among family members and couples.
Disadvantages
- Lack of flexibility. An individual interest cannot be left to someone outside the joint tenancy.
- Exposure to creditors. Creditors of any joint tenant can place claims against the property.
- Unintended severance. Actions by one tenant, such as transferring their interest, can sever the joint tenancy.
Joint tenancy vs. tenancy in common
A joint tenancy means equal shares with a right of survivorship. In a tenancy in common, owners can hold unequal shares, there is no right of survivorship, and each owner’s interest can be sold or left to heirs independently. Most partition disputes involve tenants in common.
Legal considerations
It’s worth consulting a legal professional before choosing joint tenancy, to understand the implications fully and make sure it fits your estate planning goals.
Related: How to remove a co-owner from a house title in Arizona · Can I force the sale of inherited property in Arizona?
If co-owners are already at an impasse, see the Arizona partition actions guide, or request a free consultation.