 Sam
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 Posted: Mon Apr 05, 2004 1:34 am Post subject: What is Tenancy by the Entirety? |
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Tenancy -by-the-entirety is a legal term for the joint ownership of a property between a husband and wife. The title of ownership is signed together and the interest is acquired at the same time. It is based on the age old concept that after marriage the husband and wife are not two but one.
For example, If Jack and Joanne were husband and wife holding a property with tenancy-by-the-entirety. Supposing Jack dies, the title automatically gets transferred totally to Joanne.
The tenancy stands as long as the marriage stands. If the couple gets divorced, the conveyance automatically gets converted to Tenancy-in-common where both parties get one-half of the property. It is also called community property tenancy.
It has features similar to Joint Tenancy. But unlike the latter, neither party can deal with the property independently. This has been specifically done so that after the death of the spouse the property does not become liable to the debts of that partner; thus saving the partner from becoming homeless.
But it has its inherent disadvantages. The property cannot be leased, mortgaged, sold or liened out separately. One cannot even convey the title to the adult child by one partner's discretion.
It is best to couple this tenancy with the right of survivorship. |
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