Question

which of the following is a correct statement regarding tenancy by the entirety?

A.

Tenancy by the entirety must be created by express words.

B.

Tenancy by the entirety is also known as tenancy in common.

C.

Tenancy by the entirety may be created either expressly or implicitly.

D.

Tenancy by the entirety is also known as joint tenancy.

E.

Tenancy by the entirety can be used by any cohabitating couple.

Answer 1

Correct answer is Option A

Tenancy by the entirety is created by any conveyance to a couple that presumptively preserves the unity.

Explanation:

There are three forms of Joint ownership:

• Tenancy by the entirety
• Tenancy in common, and
• Joint tenancy.

Tenancy by the entirety describes a married couple that jointly owns real estate as one legal entity.

Tenancy by the entirety can only be created by spouses, because they are considered a single unit, one spouse may not give away or sell the interest in the property without the knowledge of the other spouse.

The creation of a tenancy by the entirety is much like the creation of a joint tenancy plus marriage. In order to form a tenancy by the entirety, five conditions must be met:

• Requires marriage
• Husband and wife must acquire the property at the same time
• Husband and wife must acquire title by the same will or deed
• Husband and wife must have identical interests in the property
• Husband and wife must an equal right to possession

Any conveyance to a husband and wife that preserves the four unities presumptively creates a tenancy by the entirety. However, a conveyance to a husband and wife need not necessarily create a tenancy by the entirety. If the intent of the donor is to create a joint tenancy or a tenancy-in-common between the husband and wife, this intent can override the presumption that such a transfer creates a tenancy by the entirety. For example:

Option - B is incorrect

• It means, share a specified proportion of ownership rights in real property and upon the death of a tenant in common, that share is transferred to the estate of the deceased tenant.
• Where as, Tenancies by the entirety are allowed only between a husband and wife. Each owns an equal share.

Option - D is incorrect

• Tenancy by the entirety has some characteristics different than other joint tenancies, such as the inability of one joint tenant to sever the ownership and differences in tax treatment. It is similar to joint tenancy because when a spouse dies the surviving spouse takes the entire estate in fee simple.
• Unlike joint tenancy, there is no unilateral right to division of property.
• Divisions can me made only in a divorce action or by mutual agreement.
• Major advantage from this type of tenancy is, the creditors of an individual spouse cannot reach the entirety's property.

Option - E is incorrect

• Tenancy by the entirety is a type of concurrent estate in real property that occurs when the owners of the property are married.
• A tenancy by the entirety is a form of concurrent ownership that can only exist between a husband and wife.