Real Estate Council of Alberta Fundamentals Practice Exam

What happens if any of the conditions of joint tenancy are terminated?

1. Ownership is transferred to a third party

2. It remains in joint tenancy

3. It switches to tenancy in common

4. It becomes sole ownership

The correct answer is: It switches to tenancy in common

In the context of joint tenancy, if any of the key conditions that define this form of ownership are terminated, the ownership structure typically shifts to a tenancy in common. Joint tenancy is characterized by the rights of survivorship, meaning that if one owner passes away, their share of the property automatically transfers to the remaining joint tenants. However, certain conditions must be met for joint tenancy to remain in effect, including unity of possession, interest, title, and time. When any of these conditions is interrupted or ceases to apply, the joint tenancy is severed. This means that instead of the property being owned by multiple parties with rights of survivorship, the ownership is converted to a tenancy in common. In a tenancy in common, each owner has a distinct share of the property that can be sold, gifted, or inherited independently of the other owners’ shares. This shift allows for more individual control over one's share, which is a fundamental change from the joint tenancy arrangement. In this scenario, ownership does not transfer to a third party automatically; it does not remain joint tenancy, nor does it directly lead to sole ownership unless specifically acted upon by one of the owners. Therefore, the transition to tenancy in common accurately reflects the implications of severing the conditions