The ownership type shown on your deed represents the legal rights that the joint owners have within the property. A tenant by entirety deed allows the ownership interest of a deceased person to pass directly to the surviving tenants. The main benefit of a tenancy by entirety is that a tenant may not sell or convey his interest to another party without the consent of all tenants. If all of the tenants want to ensure that the interest of a deceased tenant automatically goes to the surviving tenants, all joint tenants will need to agree to change the joint tenant deed to a tenancy by entirety deed.
Obtain a copy of the joint tenancy deed. Identify all joint tenants named as the "grantees." The grantees are the current legal owners of the property. All of the grantees named on the joint tenancy deed must agree to sign the tenancy by entirety deed in order to switch the ownership of the deed from joint tenancy to tenancy by the entirety.
Complete a blank tenancy by entirety deed. Write in the full names and addresses of each joint tenant in the "grantor" section of the tenant by entirety deed. Write in the current address of each owner immediately after his name. All of the owners named as a grantee on the joint tenant deed will be named as both a grantor and a grantee on the tenancy by entirety deed. Write each tenant's name and address in the "grantee" section of the tenant by entirety deed. Write in the amount being paid for the property in the "consideration" section if the transfer involved an exchange of money. Write in the legal description of the property exactly as it appears on the joint tenancy deed.
Hire an attorney to review the tenancy by entirety deed. The attorney will make sure the information is complete and accurate. If any errors are pointed out, do not make corrections to the deed, but execute a new deed so that it has no errors. A clean deed with no markings or scratched out words will prevent future confusion or misinterpretation.
Sign your completed tenancy by entirety deed jointly. Each joint tenant is a grantor as well as a grantee on the tenant by entirety deed. Since the new deed is only converting the type of ownership from joint tenants to tenants by entirety, the individual owners stay exactly the same. Each joint tenant must sign his full name and address in the “grantor" section of the tenant by entirety deed. Write the phrase "as joint tenants" next to each grantor's signature. Each joint tenant must sign his full name and address again in the “grantee" section of the tenancy by entirety deed. Write the phrase "as tenants by entirety" next to each grantee's signature. Make sure that all signatures are done in front of a Notary Public.
Record your new deed in your local register of deeds office, land records division or circuit court. Make copies of the recorded deed and provide a copy to all of the tenants. Once the deed is recorded, the ownership of the deed has been changed from joint tenancy to tenancy by entirety.
Tips
When deeds are passed among spouses, no recording or transfer taxes are required, but a recording fee must still be paid. One of the legal benefits of holding title as tenants by entirety is that no creditor can attach a lien on the property for a debt that only one of the owners owe. This is because each owner owns an "undivided" one-half interest in the property.
Warnings
Only a few states that recognize a deed as a tenants by entirety agreement. In these states, you may be required to hold title as joint tenants. Only married couples can use a tenancy by entirety deed. Unmarried couples must enter into joint tenancies or become tenants in common. Some states require the sum of $1 be used if no money is being paid by the grantees for consideration. Check with the county recorder's office to determine the required amount for a transfer where no money is involved.
References
- Tenants By the Entirety: Overview
- Tenancy by the Entirety- Big Solutions for Small Business
- Cornell Law School Legal Information Institute (LII). "Tenancy by the Entirety," Accessed Dec. 6, 2019.
- Cornell Law School Legal Information Institute (LII). "Joint Tenancy," Accessed Dec. 6, 2019.
- Cornell Law School Legal Information Institute (LII). "Right of Survivorship," Accessed Dec. 6, 2019.
- Fidelity. "Estate Planning for the Home," Accessed Dec. 6, 2019.
- Congress.gov. "H.R.94 - Amend the Code for Marriage Equality Act of 2019," Accessed Dec. 6, 2019.
- National Law Review. "The Effect of Obergefell v. Hodges for Same-Sex Couples," Accessed Dec. 6, 2019.
- Michigan State Tax Commission. "Transfer of Ownership Guidelines," Page 19. Accessed Dec. 6, 2019.
- Cornell Law School Legal Information Institute. "11 U.S. Code § 363.Use, Sale, or Lease of Property, (H)-(J)," Accessed Dec. 6, 2019.
- Internal Revenue Service (IRS). "5.17.2.5.2.4 (03-05-2019) Tenancy by the Entirety," Accessed Dec. 6, 2019.
- Internal Revenue Service (IRS). "Innocent Spouse Relief," Accessed Dec. 6, 2019.
- American College of Trust and Estate Counsel. "Tenancy by the Entireties," Accessed Dec. 6, 2019.
- Alaska State Legislature. "Alaska Statutes 2018. Sec. 34.15.140," Accessed Dec. 6, 2019.
- Code of Arkansas Public Access. "A.C.A. § 18-12-608," Accessed Dec. 6, 2019.
- State of Delaware. "Delaware Code Online Title 25 - Chapter 3 § 309," Accessed Dec. 6, 2019.
- Code of the District of Columbia. "D.C Law § 42–516. Tenancies in Common, Tenancies by the Entireties, and Joint Tenancies," Accessed Dec. 6, 2019.
- The Florida Legislature. "2019 Florida Statutes Title XL Chapter 689," Accessed Dec. 6, 2019.
- Hawaii State Legislature. "§509-2 Creation of Joint Tenancy, Tenancy by the Entirety, and Tenancy in Common," Accessed Dec. 6, 2019.
- Illinois General Assembly. "765 ILCS 1005 Joint Tenancy Act," Accessed Dec. 6, 2019.
- Indiana General Assembly. "Indiana Code 2019 Title 32 Article 17 Chapter 3: Tenancy," Accessed Dec. 6, 2019.
- Kentucky General Assembly. "Kentucky Revised Statutes - 381.05," Accessed Dec. 6, 2019.
- General Assembly of Maryland. "Real Property § 4 - 108," Accessed Dec. 6, 2019.
- The 191st General Court of the Commonwealth of Massachusetts. "General Law - Part II, Title 1, Chapter 184, Section 7," Accessed Dec. 6, 2019.
- Michigan Legislature. "Section 557.71," Accessed Dec. 6, 2019.
- Mississippi Code. "Miss. Code Ann. § 91-3-9," Accessed Dec. 6, 2019.
- State of Missouri Revisor of Statutes. "Section 471.030," Accessed Dec. 6, 2019.
- New Jersey Legislative Statutes. "46:3-17.2 Tenancy by Entirety," Accessed Dec. 6, 2019.
- Laws of New York. "EPT Estates, Powers and Trusts Part 2 6.2-1," Accessed Dec. 6, 2019.
- North Carolina General Assembly. "§ 39-13.3. Conveyances Between Husband and Wife," Accessed Dec. 6, 2019.
- Ohio Laws and Rules. "5302.21 Prior Tenancy by the Entireties or Survivorship Tenancy," Accessed Dec. 6, 2019.
- Oklahoma States Court Network. "Joint Interest - Joint Tenancy - Tenancy by Entirety," Accessed Dec. 6, 2019.
- OregonLaws.org."ORS 93.180: Forms of Tenancy in Conveyance or Devise to Two or More Persons," Accessed Dec. 6, 2019.
- Pennsylvania General Assembly. "Title 23, Chapter 35: Property Rights," Accessed Dec. 6, 2019.
- State of Rhode Island General Assembly, "§33-25-2. Life Estate to Spouse," Accessed Dec. 6, 2019.
- Tennessee Code. "§ 66-27-105," Accessed Dec. 6, 2019.
- Vermont General Assembly. "Title 27: Property, Chapter 005: Conveyance of Real Estate," Accessed Dec. 6, 2019.
- Virginia General Assembly. "Code of Virginia § 55-20.2," Accessed Dec. 6, 2019.
- State of Wyoming 65th Legislature. "Wyoming Statutes 34-1-140," Accessed Dec. 6, 2019.
- Cornell Law School Legal Information Institute (LII). "Tenancy in Common," Accessed Dec. 6, 2019.
- Sterling and Tucker, LLP. "The Trouble of Joint Tenancy," Accessed Dec. 6, 2019.
Tips
- When deeds are passed among spouses, no recording or transfer taxes are required, but a recording fee must still be paid.
-
Warnings
-
- Only married couples can use a tenancy by entirety deed. Unmarried couples must enter into joint tenancies or become tenants in common.
- Some states require the sum of $1 be used if no money is being paid by the grantees for consideration. Check with the county recorder's office to determine the required amount for a transfer where no money is involved.
Writer Bio
Based in Virginia Beach, Tiffany Winston has invested in real estate since 2003. She specializes in raw land development and new construction. She is also a paralegal, with experience searching titles and processing foreclosures. Winston admits she's addicted to HGTV reality shows and is working on her own investing ebook series.