What does it mean to be joint tenants?

My current focus will be talking about types of interest that people can have in real property.  The next series of blog entries will explore ownership of real property by people at the same time. 

If you purchase a house with two or more persons your ownership is by tenants in common and not joint tenancy, unless expressly declared to be a joint tenancy.  This declaration is usually done in the conveying deed.  This is important because under a joint tenancy, if one of the joint tenants dies that person’s ownership interest in the house passes to the surviving joint tenants.  For example, if John, his wife Sarah, his brother Jim and his wife Rebbecca own a cabin in Brainerd as joint tenants.  Just recently John passed away.  Because the ownership of the cabin is in joint tenancy, John’s ownership passes to the remaining owners.  If the ownership was as tenants in common, John’s ownership would have been as asset that he could bequeath to another under his Will.  It should be noted that a joint tenancy does not exist in Minnesota between a husband and wife solely by virtue of the marital relationship, but it may exist by virtue of express grant or devise.  Wilson v. Wilson, 43 Minn. 398, 45 N.W. 710 (1890).  However, in Minnesota, a surviving spouse does have certain protections in homestead property regardless of joint tenancy.  I will be exploring this issue in later blog entries.

A joint tenancy can be severed.  If it is severed it reverts to a tenancy in common.  Under Minn. Stat. §500.19, subd. 5:

A severance of a joint tenancy interest in real estate by a joint tenant shall be legally effective only if (1) the instrument of severance is recorded in the office of the county recorder or the registrar of titles in the county where the real estate is situated; or (2) the instrument of severance is executed by all of the joint tenants; or (3) the severance is ordered by a court of competent jurisdiction; or (4) a severance is effected pursuant to bankruptcy of a joint tenant.

A decree of dissolution of a marriage severs all joint tenancy interests in real estate between the parties to the marriage, except to the extent the decree declares that the parties continue to hold an interest in real estate as joint tenants.

In following this statute, joint tenants may sever the joint tenancy by agreement, it may be severed by one of the joint tenants conveying that person’s share of the real property to a stranger, or severance can be created by conveying all interest directly to the other joint tenant.  Greiger v. Pye, 210 Minn. 71, 297 N.W. 173 (1941).  It should be noted that severance can only happen if the intent was to divest a joint tenant of a joint tenancy, the creation of a lien or encumbrance by one joint tenant does not sever the joint tenancy.