MEE Rules Flashcards
Requirements to create a joint tenancy (6.9%)
The “four unities” (T.I.P.I.) must be in place to create a joint tenancy:
(1) Time. Joint tenants must receive their property interests at the same time.
(2) Instrument. Joint tenants must receive their property interest in the same instrument of title.
(3) Possession. Each joint tenant must have an equal right to posses and enjoy the whole property (also required for tenants in common).
(4) Interest. Each joint tenant must have an equal share of the same type of interest (e.g., two joint tenants each have a 50% share in fee simple).
Severance of joint tenancy (effect, common reasons) (6.9%)
If any of the four unities are severed (i.e., destroyed), then the joint tenancy is terminated and the cotenants hold the property as tenants in common. There are two main situations where this happens:
(1) When a joint tenant conveys her interest to a third party, that party takes the property as a tenant in common (clearly destroys the time and title unities).
(a) If there were originally two joint tenants, the conveyance converts the estate into a tenancy in common (i.e., the two tenants are now tenants in common with no right of survivorship).
(b) If there were originally three or more joint tenants, the joint tenancy remains among the other joint tenants not involved in the conveyance while the third party is a tenant in common.
(2) When a joint tenant grants a mortgage interest in the joint tenancy to a creditor, the effect will depend on the jurisdiction:
(a) In a lien theory jurisdiction (majority view), the mortgage is treated as a lien and does NOT terminate the joint tenancy.
(b) In a title theory jurisdiction (minority view), the mortgage will terminate the joint tenancy, and the tenants will then hold the property as tenants in common.
Assignment and collection of rent (6.9%)
An assignment is a complete transfer of the tenant’s entire remaining term under the lease. In an assignment, the landlord can collect rent from the:
(1) Assignee (because there is privity of estate); OR
(2) Original tenant (because there is privity of contract).
