Chapter 4
Georgia Real Estate
An Introduction to the Profession
Eighth Edition
Chapter 4
Forms of Ownership
Key Terms
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community property
concurrent ownership
estate in severalty
four unities
joint tenancy
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right of survivorship
tenancy by the entirety
tenants in common
undivided interest
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Sole Ownership
When title to property is held by one person, it
is called an estate in severalty.
Businesses usually hold title to property in
severalty.
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Tenants in Common
When two or more people
wish to share the ownership
of a single property, they
may do so as tenants in
common.
Each owns an undivided
interest in the whole
property.
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Tenants in Common
The interests do not need to be the same.
Each owner can independently sell, mortgage,
give away or devise an individual interest.
Each tenant in common has a separate legal
title to an undivided interest.
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Tenants in Common
One parcel of land;
Three owners with unity of possession
A
B
C
What happens if C dies?
A
B
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C’s heirs
Wording of Conveyance
If nothing is said regarding the size of each coowner’s interest in the property, the law
presumes that all interests are equal.
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Wording of Conveyance
In Georgia, unless stated otherwise, when two
or more people are named as owners, they are
presumed to be tenants in common with an
equal ownership interest.
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No Right of Survivorship
With a tenancy in common, if a co-owner dies,
the co-owner’s interest passes to his or her
heirs or devisees.
There is no right of survivorship.
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Co-Owner Responsibilities
Income generated by the property belongs to
the tenants in common in proportion to the
size of their interests.
Similarly, each co-owner is responsible for a
proportionate share of taxes, repairs, upkeep,
etc.
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Co-Owner Responsibilities
If co-owners cannot agree on a plan for
dividing or selling the property, it is possible to
request a court-ordered partition.
A partition divides the property into portions so
that each person can hold their interest in
severalty.
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Co-Owner Responsibilities
If the property cannot be physically divided,
the court will order the property sold and the
proceeds divided among the co-owners.
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Joint Tenancy
Joint tenancy is another form of concurrent
ownership. Joint tenancy has the right of
survivorship.
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Joint Tenancy
Upon the death of a joint tenant, that interest
passes to the surviving joint tenant(s). The
interest does not pass to the heirs or by a will.
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Joint Tenancy
A
B
C
One parcel of land;
3 owners, 4 unities (PITT)
C
If C dies?
A
B
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Four Unities
To create a joint tenancy, the four unities must
be present: possession, interest, title and time.
Unity of possession means that the joint
tenants must enjoy the same undivided
possession of the whole property.
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Four Unities
Unity of interest means that the joint tenants
own one interest together.
If there are 2 owners, they each own 50%.
If there are 3 owners, they each own 33.3%
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Four Unities
Unity of title means that the joint tenants
acquire their interests from the same deed.
No matter how many joint tenants there are,
there is only one title to the property.
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Four Unities
Unity of time means that each joint tenant
must acquire their ownership interest at the
same moment.
It is not possible to add new joint tenants later.
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Right of Survivorship
Upon the death of a joint tenant, that interest
in the property is extinguished.
Ultimately, the last survivor becomes the sole
owner.
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Right of Survivorship
The right of survivorship has made joint
tenancy a popular form of ownership among
married couples.
Any property held in joint tenancy goes to the
surviving spouse without the delay of probate.
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“Poor Man’s Will”
Because of the survivorship feature, joint
tenancy has been labeled a “poor man’s will.”
It affects only property held in joint tenancy.
As a joint tenant, you cannot will your joint
tenancy to someone.
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“Poor Man’s Will”
Georgia does recognize joint tenancy, but the
deed must clearly state that it is a joint
tenancy with the right of survivorship.
Only a human being can be a joint tenant. A
corporation cannot be a joint tenant.
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Tenancy by the Entirety
Tenancy by the entireties is
a form of joint tenancy
specifically for married
people.
A husband and a wife serve
as in indivisible legal unit.
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Tenancy by the Entirety
While both are alive and
married to each other, both
signatures are required to
convey title.
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Tenancy by the Entirety
A tenancy by the entirety
can be terminated only by
joint action of husband and
wife.
Georgia does not recognize
tenancy by the entirety.
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Effect of Divorce
In the event of divorce, the parting spouses
become tenants in common.
This change is automatic. Tenancy by the
entirety can only exist between a husband and
a wife.
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Community Property
Georgia is not a community property state.
The concept is that the husband and wife
contribute jointly and equally to the marriage
and should share equally in any property
purchased during the marriage.
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Separate Property
Property owned before marriage and property
acquired after marriage by gift, inheritance or
purchased with separate funds can be
exempted from the couple’s community
property.
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Caveat to Agents
There may be an occasion when a buyer will
ask the real estate agent how to take title.
If the agent attempts to respond with a
recommendation, the agent is practicing law. A
license is required to practice law.
Refer the buyers to a lawyer for advice.
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