Humber/Ontario Real Estate Course 1 Exam Practice

In a joint tenancy, what happens to the property if one of the co-owners dies?

1. The deceased's ownership automatically transfers to the remaining co-owners

2. The ownership share is inherited by the deceased's heirs

3. The deceased’s share is distributed according to their will

4. The property must be sold and proceeds divided among the co-owners

The correct answer is: The deceased's ownership automatically transfers to the remaining co-owners

In a joint tenancy, when one of the co-owners dies, the property automatically transfers to the remaining co-owners. This is known as the right of survivorship, a key characteristic of joint tenancy. This means that the deceased co-owner's share does not form part of their estate or go to their heirs but instead passes on directly to the surviving co-owners. This process ensures that the ownership of the property remains intact and avoids the complications and delays that might arise if the deceased co-owner's share had to go through probate or be distributed according to a will. Option B is incorrect because, in a joint tenancy, the property does not pass on to the deceased owner's heirs but rather to the surviving co-owners through the right of survivorship. Option C is incorrect because, in a joint tenancy, the deceased co-owner’s share does not need to be distributed according to their will since it automatically transfers to the remaining co-owners. Option D is incorrect because in a joint tenancy, there is no requirement to sell the property and divide the proceeds among the co-owners when one of them dies. Instead, the property simply passes on to the surviving co-owners by operation of law.