1031 Exchanges - Vesting Issues #2

COMMUNITY PROPERTY

JOINT TENANCY

TENANCY IN COMMON

PARTIES

Only husband and wife

Any number of persons
(Can be husband & wife)

Any number of persons (Can be husband & wife)

CONVEYANCE

Both co-owners must join in
conveyance of real property.
Separate interests cannot be
conveyed.

Conveyance by one co-owner without the others breaks the joint tenancy.

Each co-owner's interest may be exchanged or sold separately by each owner.

CREDITOR'S RIGHTS

Co-owner's interest cannot be seized and sold separately. The whole property may be sold to satisfy debts of either husband or wife, depending
on the debt.

Co-owner's interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken, creditor becomes tenant in common.

Co-owner's interest may be sold on execution sale to sat-isfy the creditor. Creditor becomes tenant in common.

DEATH

On co-owner's death, 1/2 goes to survivor in severalty. Up to 1/2 goes by will or succession to others.

On co-owner's death, the interest ends and cannot be willed. Survivor(s) own(s) the property by survivorship.

On co-owner's death, the interest passes by will to the devisee or heirs. No survivorship rights.

DIVISION

Ownership interests are equal.

Ownership interests cannot be divided without breaking the joint tenancy.

Ownership can be divided into any number of interests, equal or unequal.

TITLE

Title is in the "community" (Similar to title being in a partnership.)

There is only one title to the whole property.

Each co-owner has a separate legal title to their undivided interest which can be exchanged or sold.