Aiko and her husband Taro are purchasing a home in Kaimuki as joint owners. They are legally married. Their real estate agent explains they can take title in several ways. If Aiko and Taro take title as tenants by the entirety, which of the following statements is correct under Hawaii law?
Correct Answer
D) Neither Aiko nor Taro can separately convey or encumber their interest, and the survivor takes full ownership upon death
Hawaii recognizes tenancy by the entirety for married couples. Under this form of ownership, neither spouse can unilaterally convey or encumber their interest — both must act together. Upon the death of one spouse, the surviving spouse automatically takes full ownership by right of survivorship, without probate. This is a key distinction from joint tenancy and tenancy in common.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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