Humber/Ontario Real Estate Course 4 Exam Practice

Why is a joint tenancy not created between two buyers with different property interest proportions?

1. Reed and Boothe are joint tenants because they acquired the same property at the same time.

2. The title will automatically transfer to Boothe upon Reed's death.

3. Joint tenancy is not created, as the buyers' interests in the property are not identical.

4. Reed and Boothe will create a joint tenancy if the interests were acquired at the same time.

5. Joint tenancy requires identical contributions.

6. Percentage ownership does not affect tenancy type.

The correct answer is: Joint tenancy is not created, as the buyers' interests in the property are not identical.

The correct answer highlights a fundamental aspect of joint tenancy in property ownership. For a joint tenancy to exist, the parties must hold identical shares or interests in the property. If two buyers have differing proportions of property interests, they cannot simultaneously be joint tenants since joint tenancy requires unity of interest. This means all tenants must have equal rights and share the property equally, both in ownership and in the benefits derived from it. Although other options address various nuances of joint tenancy, they do not accurately define the requirement for identical interests. For example, while some statements touch upon time of acquisition or contributions, the core principle remains that differing proportions inherently prevent the establishment of a joint tenancy. Thus, the emphasis lies on the necessity of equal and identical interests to create this specific form of ownership.