Tenancy by the Entirety
Definition
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Example
A married couple owns their home as tenants by the entirety. When the husband incurs a business debt, creditors cannot place a lien on the home because the debt belongs to only one spouse. If the couple divorces, the tenancy by the entirety automatically converts to a tenancy in common.
Exam Tip
Available ONLY to married couples (not all states recognize it). Key protection: individual creditors of one spouse cannot force sale. Neither spouse can act alone—both must consent to any transfer. Divorce converts to tenancy in common. Compare with joint tenancy where any owner can sever unilaterally.
Related Ownership Terms
Real Property vs. Personal Property
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint Tenancy
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy in Common
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
Community Property
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium Ownership
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
Cooperative Ownership
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
Frequently Asked Questions
Test Your Ownership Knowledge
Practice with exam-style questions to make sure you can apply Tenancy by the Entirety and other ownership concepts.