We’ve previously written about common types of deeds in Arizona. Did you know that there are multiple ways to take title to a property in a deed? The two most common are as tenants in common or joint tenants with right of survivorship:
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Tenants in common each own an undivided interest in the property with an equal right to use and possess the property. Either can sell or transfer their interest in the property at any time and if one tenant dies, their interest would pass to their heirs.
For example, Mary owns a 50% interest in the property, and her niece Joanna and nephew John each own a 25% interest in the property. Mary sells her interest to her friend Patrick, who then passes away unexpectedly, leaving his entire estate to his daughter Julie. Now Julie owns 50% and Joanna and John each own 25%.
Further example: Same situation as above. Furthermore, John gives his interest in the property to Joanna as repayment of a loan. Now Julie owns a 50% interest in the property, and Joanna owns a 50% interest.
Another example: Friends Mary and John purchase a house together as Tenants in common, each with a 50% interest in the property. Mary meets Ted, gets married, and moves out of the house. John passes away, leaving his 50% interest in the home to his cousin Rebecca. Now Rebecca and Mary each have a 50% interest in the property.
This type of ownership can be very confusing when it comes time to sell or obtain mortgages.
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Joint tenants with right of survivorship must have received title on the same deed, at the same time, with an equal share of ownership and identical right of possession. When people own property in this manner, the property automatically passes to the remaining owner upon the death of an owner.
