Property ownership
Legal descriptions, liens, easements, estates and the ways people hold title together.
Property ownership in one paragraph
Joint tenancy vs tenancy by the entirety in New Jersey
| Joint tenancy | Tenancy by the entirety | |
|---|---|---|
| Who can hold title | Any two or more people | Only spouses or civil union partners |
| Right of survivorship | Yes | Yes |
| How it is created | The deed must expressly say joint tenancy, or the owners are tenants in common | Automatic when spouses or civil union partners take title together, unless the deed says otherwise |
| Can one owner break it alone? | Yes. Conveying a share ends the joint tenancy as to that share | No. Neither can sever or convey without the other's written consent |
| Effect of divorce | None by itself | Becomes a tenancy in common |
Property ownership: 4 rules to memorize
Fee simple absolute is the most complete estate.
Full bundle of rights, no conditions.
Joint tenancy means survivorship.
Tenants in common do not have it.
Liens are specific or general.
A mechanic's lien is specific and involuntary; a judgment lien is general.
Three ways to describe land.
Metes and bounds, lot and block, and the government survey.
Property ownership, explained
Co-ownership is about survivorship. Joint tenants have it and need the four unities of time, title, interest and possession. Tenants in common do not, and can own unequal shares. Tenancy by the entirety is available to married couples, and in New Jersey to civil union partners.
New Jersey mostly uses metes and bounds and lot and block descriptions. Expect questions on easements, encroachments and liens, including which liens are specific (one property) and which are general (all of the debtor's property).
Know real vs personal property. Real property is land plus anything permanently attached to it, including fixtures. Tests look at how the item is attached, whether it was adapted to the property and what the person who attached it intended, and the purchase contract can settle any item by name. Trade fixtures a commercial tenant installs for business stay the tenant's personal property and can be removed before the lease ends.
Rights can be split off. Mineral, air and water rights can be sold or leased apart from the surface. For common-interest ownership, a condominium owner holds title to a unit plus an undivided share of the common elements, while a co-op owner holds shares in the corporation that owns the building plus a proprietary lease. A timeshare divides the use of a unit by time period.
New Jersey has its own co-ownership rules. A deed to two or more people creates a tenancy in common unless it expressly says joint tenancy (N.J.S.A. 46:3-17). Spouses and civil union partners who take title together hold as tenants by the entirety unless the deed says otherwise, and neither one can sever or convey their interest without the other's written consent. Divorce turns a tenancy by the entirety into a tenancy in common. Adverse possession is slow here: title vests after 30 years of actual possession for most land and 60 years for woodlands or uncultivated tracts.
How the exam tries to trip you up
- A deed to two unmarried buyers says nothing about survivorship. In New Jersey that is a tenancy in common, not a joint tenancy. Joint tenancy has to be spelled out in the deed.
- The question says one spouse sold their half of a tenancy by the entirety to a third party. Neither spouse can sever or convey alone without the other's written consent, so pick the answer that says the sale needs both.
- Trade fixtures look like fixtures but stay the tenant's personal property. The tenant can take them out before the lease ends and must repair any damage.
- Specific vs general liens: property taxes, special assessments, mortgages and mechanic's liens attach to one property. Judgment liens and federal tax liens can reach all of the debtor's property.
Property ownership practice questions
Which estate is the most complete form of ownership?
Property ownership flashcards
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All 7 terms at a glanceShowHide
- Easement
- A right to use another's land for a specific purpose.
- Encroachment
- An improvement that crosses onto a neighbor's property.
- Tenancy by the entirety
- Co-ownership by spouses (and NJ civil union partners) with survivorship.
- Severalty
- Ownership by one person or one entity alone.
- Fixture
- Personal property attached to land or a building so that it becomes part of the real property.
- Trade fixture
- Equipment a commercial tenant installs for business that stays the tenant's personal property and can be removed.
- Proprietary lease
- The lease a co-op shareholder holds that gives the right to occupy a specific unit.
Property ownership: common questions
Sources and further reading
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