Unities

Definition

Unities refer to the four key characteristics necessary to establish a joint tenancy in real estate. These characteristics are:

Unity of Interest: All joint tenants must have an equal interest in the property.
Unity of Possession: All joint tenants must have equal rights to possess the entire property.
Unity of Time: The interests of all joint tenants must arise at the same time.
Unity of Title: All joint tenants must obtain their ownership through the same transaction or title deed.

When these unities are present, joint tenants hold an indivisible interest in the property, meaning that the property is neither split nor divisible among the owners.

Examples

Residential Property: Jane, John, and Jim purchase a home together as joint tenants. They each have an equal interest (unity of interest) and can use the entirety of the home (unity of possession). They purchased the home on the same day and via the same deed (unity of time and title).
Rental Income Property: Four investors buy a rental apartment as joint tenants. They share the rental income equally and have the right to possess any part of the property equally at all times. Their interest started when they all signed the same purchase agreement.

Frequently Asked Questions (FAQs)

What happens if one joint tenant sells their interest?

If one joint tenant sells their interest, the purchaser typically becomes a tenant in common with the remaining joint tenants, effectively ending the joint tenancy for that share.

Can one joint tenant transfer their interest to someone else?

Yes, a joint tenant can transfer their interest, but this act can sever the joint tenancy, converting the relationship into a tenancy in common for the transferred part.

How does the right of survivorship work in joint tenancy?

Upon the death of a joint tenant, their interest automatically passes to the surviving joint tenants rather than being inherited by their heirs or estate.

Can joint tenants have unequal shares in the property?

No, joint tenants must have equal undivided interests and equal rights to the possession of the property.

What is the difference between joint tenancy and tenancy in common?

Joint tenancy includes the right of survivorship and requires the four unities. Tenancy in common does not require the unities and has no right of survivorship, meaning each tenant’s share can be passed down to heirs.

Joint Tenancy: A form of ownership by two or more individuals together that includes the right of survivorship.
Tenancy in Common: A form of property co-ownership where each owner holds an individual part without rights of survivorship.
Right of Survivorship: A feature of joint tenancy where the remaining co-owners automatically inherit a deceased owner’s share.
Title Deed: A legal document that shows property ownership.

Online Resources

References

“Real Estate Principles,” 11th edition by Charles F. Floyd and Marcus T. Allen.
“Real Estate Law,” 7th edition by Marianne Jennings.
“Principles of Real Estate Practice,” by Stephen Mettling and David Cusic.

Suggested Books for Further Studies

“Principles of Real Estate Practice” by Stephen Mettling and David Cusic.
“The Real Estate Wholesaling Bible: The Fastest, Easiest Way to Get Started in Real Estate Investing” by Than Merrill.
“Investing in Duplexes, Triplexes, and Quads: The Fastest and Safest Way to Real Estate Wealth” by Larry Loftis.

Real Estate Basics: Unities Fundamentals Quiz

### What are the unities required to create a joint tenancy? - [x] Interest, Possession, Time, Title - [ ] Interest, Financing, Time, Title - [ ] Possession, Location, Title, Agreement - [ ] Ownership, Duration, Title, Agreement > **Explanation:** The four unities required to create a joint tenancy are unity of interest, unity of possession, unity of time, and unity of title. These ensure equal shared ownership among joint tenants. ### Can joint tenants have different shares in the property? - [ ] Yes - [x] No - [ ] Only if specified in the deed - [ ] Only under certain conditions > **Explanation:** Joint tenants must have equal shares in the property, meaning their interest and rights to possess the property are identical. ### What happens if one joint tenant sells their interest? - [ ] The property is automatically sold - [ ] The joint tenancy continues unaffected - [x] The purchaser becomes a tenant in common - [ ] The remaining tenants also lose their interest > **Explanation:** When one joint tenant sells their interest, the joint tenancy for that interest is severed, and the purchaser becomes a tenant in common with the remaining joint tenants. ### Which unity refers to all joint tenants having the right to possess the whole property? - [ ] Unity of Interest - [x] Unity of Possession - [ ] Unity of Time - [ ] Unity of Title > **Explanation:** Unity of Possession ensures that all joint tenants have the equal right to possess and enjoy the entire property. ### What is the term used for when a deceased joint tenant’s share automatically passes to surviving joint tenants? - [ ] Unity of Title - [ ] Tenancy in Common - [ ] Tenant in Severalty - [x] Right of Survivorship > **Explanation:** Right of Survivorship means that the deceased joint tenant's share automatically passes to the surviving joint tenants, not to their heirs. ### Do unities of joint tenancy include having shared rights to survivorship? - [x] Yes, it is a crucial part of joint tenancy. - [ ] No, they have individual survivorship rights. - [ ] Only under a common property regime. - [ ] Only in community property states. > **Explanation:** Yes, an essential aspect of joint tenancy is the right of survivorship, which allows surviving tenants to inherit the deceased tenant’s interest automatically. ### How does a tenancy in common differ from a joint tenancy? - [ ] Tenancy in common has the right of survivorship. - [x] Tenancy in common does not require the four unities or survivorship rights. - [ ] Joint tenants can pass their interests to heirs. - [ ] Tenancy in common is only for family members. > **Explanation:** Tenancy in common does not require the unities and does not have rights of survivorship, allowing tenants-in-common to pass their shares to their heirs. ### Can unities of title and time be achieved through separate title deeds? - [ ] Yes, separate deeds are acceptable. - [ ] Only under certain regulations. - [ ] Only if acknowledged by a solicitor. - [x] No, unities of title and time require one transaction/deed. > **Explanation:** The unities of title and time require that ownership interests arise from a single transaction or title deed. ### Which law primarily outlines the concept and rules of joint tenancy unities? - [ ] Local municipality guidelines - [ ] Federal Tax Code - [x] Common Law - [ ] Contract Law > **Explanation:** Common Law primarily outlines the concept and rules of joint tenancy unities. ### What does the unity of interest ensure? - [ ] Joint tenants have different types of use for the property - [x] Joint tenants have identical and equal interest in the property - [ ] Only some tenants pay taxes - [ ] Tenants may have different ownership lengths > **Explanation:** The unity of interest ensures that joint tenants have an identical and equal interest in the property, indicating undivided co-ownership.